Author name: Umar Draz

educationist

MS Word is used for:

A. Calculations

B. Presentations

C. Documents

D. Programming

Correct answer is: C. Documents

Word processes documents.

Which file extension is for Excel?

A. .docx

B. .xlsx

C. .pptx

D. .txt

Correct answer is: B. .xlsx

Excel files use .xlsx extension.

Financial management primarily aims to:

A. Maximize sales

B. Maximize profit

C. Maximize shareholder wealth

D. Minimize cost

Correct answer is: C. Maximize shareholder wealth

The main goal is wealth maximization of shareholders.

Which source is cheapest?

A. Equity

B. Debt

C. Preference shares

D. Retained earnings

Correct answer is: D. Retained earnings

Retained earnings have no explicit cost.

High leverage means:

A. Low risk

B. High risk

C. No risk

D. Stable income

Correct answer is: B. High risk

More debt increases risk.

Payback period measures:

A. Profitability

B. Liquidity

C. Time to recover investment

D. Risk

Correct answer is: C. Time to recover investment

It shows recovery time.

Which is not a capital budgeting technique?

A. NPV

B. IRR

C. Payback ratio

D. Current ratio

Correct answer is: D. Current ratio

Current ratio is liquidity measure.

Dividend policy affects:

A. Production

B. Shareholder wealth

C. Marketing

D. Sales

Correct answer is: B. Shareholder wealth

It impacts investor returns.

Which is a long-term source of finance?

A. Trade credit

B. Bank overdraft

C. Equity shares

D. Cash sales

Correct answer is: C. Equity shares

Equity is long-term financing.

Cost of capital is:

A. Return expected by investors

B. Company profit

C. Tax rate

D. Interest rate only

Correct answer is: A. Return expected by investors

It reflects investor expectations.