Financial Management - MCQs with answers

Financial Management - MCQs with answers


1. The only feasible purpose of financial management is

a) Wealth Maximization
b) Sales Maximization
c) Profit Maximization
d) Assets maximization

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ANSWER: a) Wealth Maximization



2. Financial management process deals with

a) Investments
b) Financing decisions
c) Both a and b
d) None of the above

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ANSWER: b) Financing decisions



3. Agency cost consists of

a) Binding
b) Monitoring
c) Opportunity and structure cost
d) All of the above

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ANSWER: d) All of the above



4. Finance Function comprises

a) Safe custody of funds only
b) Expenditure of funds only
c) Procurement of finance only
d) Procurement & effective use of funds

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ANSWER: d) Procurement & effective use of funds



5. The objective of wealth maximization takes into account

a) Amount of returns expected
b) Timing of anticipated returns
c) Risk associated with uncertainty of returns
d) All of the above

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ANSWER: d) All of the above



6. Financial management mainly focuses on

a) Efficient management of every business
b) Brand dimension
c) Arrangement of funds
d) All elements of acquiring and using means of financial resources for financial activities

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ANSWER: d) All elements of acquiring and using means of financial resources for financial activities


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