Top 350+ Solved Educational Planning and Management MCQ Questions Answer
Q. A statement that projects management’s expectations for revenues and, based on those financial expectations, allocates the use of specific resources throughout the firm is called:
a. Capital budget
b. Operating budget
c. Cash budget
d. Resource budget
Q. The total cost that arises when the quantity produced is increased by one unit is called
a. The number of people employed in the firm
b. The book value of the firm’s assets less the book value of its liabilities
c. The amount of salary paid to its employees
d. The market price per share of the firm’s common stock
Q. _________ of a firm refers to the composition of its long term funds and its capitalstructure.
a. Capitalisation
b. Over-capitalistion
c. Under-capitalisation
d. Market capitalisation
Q. In finance, “working capital” means the same thing as
a. Total assets
b. Fixed assets
c. Current assets
d. Current assets minus current liabilities
Q. Which of the following would be consistent with a more aggressive approach tofinancing working capital
a. Financing short term needs with short term funds
b. Financing permanent inventory build up with long term debt
c. Financing seasonal needs with short term funds
d. Financing some long term needs with short term funds
Q. Which of the following is not the responsibility of financial management?
a. Allocation of funds to current and capital assets
b. Obtaining the best mix of financing alternatives
c. Preparation of the firm’s accounting statements
d. Development of an appropriate dividend policy