Top 250+ Solved Functional Areas of Business MCQ Questions Answer
Q. Capital budgeting is related to
a. Long term assets
b. Short term assets
c. Long and short term assets
d. Fixed assets
Q. Working capital management is managing
a. Short term assets and liabilities
b. Long term assets
c. Long term liabilities
d. Only short term assets
Q. __________ is a source of long term-finance
a. Venture funding
b. Hire-purchase finance
c. Lease financing
d. All of the above
Q. One of the sources of seasonal working capital is
a. Share capital
b. Debenture
c. Indigenous banker
d. Retained profits
Q. Wealth maximisation is the acceptable objective because it is
a. Value maximization
b. Based on cash flows
c. Maximises the market price of shares
d. All of the above
Q. The financial function for allocation of capital to long term assets is
a. Capital structure
b. Capital budgeting
c. Working capital management
d. Dividend policy
Q. _____ is a source of long-term finance.
a. Venture funding
b. Hire-purchase finance
c. Lease finance
d. All of the above
Q. ________________ calls for skillful planning, control and execution of a firm’s activities
a. capital structure
b. finance function
c. working capital function
d. dividend policy
Q. One of the sources of seasonal working capital is
a. Share Capital
b. Debenture
c. Indigenous Bankers
d. Retained Profits
Q. _______________ involves the decision of allocation of capital or commitment of fundsto long-term assets that would yield benefits in the future
a. Working capital
b. Capital budgeting
c. Dividend policy
d. Capital structure
Q. The objectives of financial management includes-
a. Procurement of funds
b. Optimum capital structure
c. Utilization of funds
d. All of the above
Q. ______________ management refers to current assets management which effects thefirm’s liquidity and solvency
a. Working capital
b. Capital structure
c. Dividend policy
d. Capital budgeting
Q. The important factors that to be considered for dividend policy includes-
a. Government tax policy
b. Maintenance of reserves
c. Legal restrictions
d. All of the above
Q. Short-term finance is required to meet the expenses for-
a. Payment of wages and salaries
b. Cost of fixed assets
c. Initial development expenditures
d. Operating losses
Q. The only viable goal of financial management is:
a. Profit maximization
b. Wealth maximization
c. Sales maximization
d. Assets maximization