WorksheetsFinancial Management Prelim Quiz 1
Total questions: 21
Worksheet time: 18mins
Which of the following best defines financial management?
Managing people in the organization
Managing money and assets to achieve organizational goals
Managing only corporate governance
Managing short-term financing only
The primary goal of financial management is to:
Maximize profit
Maximize sales
Maximize shareholder wealth
Minimize costs
Which of the following is NOT a function of financial management?
Investment decision
Financing decision
Dividend decision
Human resource planning
The nature of financial management is BEST described as:
A short-term operational activity
A long-term strategic decision-making process
A routine administrative task
A legal compliance procedure
Which financial decision involves choosing between different projects to invest in?
Dividend decision
Financing decision
Investment decision
Accounting decision
The financing decision of financial management is mainly concerned with:
Deciding on dividend payouts
Determining the best mix of debt and equity
Selecting investment opportunities
Preparing accounting statements
The dividend decision in financial management refers to:
How much profits to reinvest or distribute to shareholders
How much capital to borrow
How to manage inventory
How to minimize taxes
Which of the following is a secondary objective of financial management?
Ensuring adequate funds are available
Maximizing shareholder wealth
Ensuring maximum profitability
Ensuring business survival and growth
Financial management contributes to organizational success by:
Ensuring efficient use of financial resources
Avoiding financial risks completely
Increasing product prices only
Reducing workforce size
Which of the following statements is TRUE about the nature of financial management?
It only deals with accounting records
It is future-oriented and decision-focused
It ignores risk and uncertainty
It is only concerned with small firms
Which of the following represents a long-term financial management decision?
Determining next month’s cash budget
Purchasing a new factory
Paying current liabilities
Recording daily sales
The purpose of financial management in a business is to:
Manage only expenses
Optimize the use of funds and increase value
Handle production scheduling
Supervise employees
Which of the following is an example of a financing decision?
Issuing new shares
Declaring dividends
Purchasing machinery
Preparing payroll
Effective financial management ensures:
Proper mobilization and utilization of funds
Over-dependence on external borrowing
Unnecessary risks are taken
Sole focus on profit maximization without considering stakeholders
The scope of financial management mainly covers:
Marketing and promotion
Investment, financing, and dividend decisions
Recruitment and training
Office administration
True or False.
Financial management is only concerned with short-term financing.
True or False.
Wealth maximization is considered superior to profit maximization as a financial goal.
True or False.
Risk and return are central concepts in financial management.
TRUE OR FALSE.
Dividend policy is unrelated to financial management.
TRUE OR FALSE.
Financial management supports decision-making for both present and future operations.
What is financial management in your own words.
Answer it in 3-5 sentences.
