Top 550+ Solved Financial Management MCQ Questions Answer
Q. What are the different options other than cash used for distributing profits to shareholders?
a. Bonus shares
b. Stock split
c. Stock purchase
d. All of these
Q. The objective of financial management is to:
a. Maximize earnings per share
b. Maximize the value of the firm’s common stock
c. Maximize return on investment
d. Maximize market share
Q. “Financial management is that activity of management which is concerned with the planning, procuring and controlling of the firm’s financial resources”. Who says this?
a. Weston and Brigham
b. J.F. Bradlery
c. Deepika& Maya Rani
d. Ezra Solomon
Q. “Financial management is an area of financial decision making, harmonizing individual motives and enterprise goals”. Who define this?
a. J.F. Bradlery
b. Ezra Solomon
c. Deepika& Maya Rani
d. Weston and Brigham
Q. “Financial management is the area of business management devoted to a judicious use of capital and a careful selection of sources of capital in order to enable a business firm to move in the direction of reaching its goals” Who says this?
a. Guthman and Dougal
b. Weston and Brigham
c. J.F. Bradlery
d. Deepika& Maya Rai
Q. “Financial management is properly viewed as an integral part of overall management rather than as a staff specially concerned with funds raising operations”.
a. Deepika& Maya Rai
b. J.F. Bradlery
c. Guthman and Dougal
d. Ezra Solomon
Q. “The activity concerned with the planning, raising, controlling and administering of fundsused in the business”. Who defines this?
a. Ezra Solomon
b. J.F. Bradlery
c. Guthman and Dougal
d. Weston Brigham
Q. The most common cause of financial problems are:
a. Undercapitalization
b. Inadequate expense control
c. Credit terms
d. All of the above
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