What is dividend?
Correct answer is: B. Profit distributed to shareholders
Dividend is return to shareholders
Human Resource Management (HRM) MCQS
Multiple choice Questions on Human Resource Management. Practice for fpsc ppsc exams
📚 Table of Content
What is cost of capital?
Correct answer is: B. Minimum return required on investment
It is required return for financing sources
What is the primary objective of financial management?
Correct answer is: A. Profit maximization
Financial management aims to maximize shareholder wealth
Which is a financial risk?
Correct answer is: B. Interest rate fluctuation
Financial risk affects returns
What does liquidity mean?
Correct answer is: B. Ability to meet short-term obligations
Liquidity refers to paying current liabilities on time
What is liquidity ratio used for?
Correct answer is: B. Short-term solvency check
It measures ability to pay short-term debts
Which financial statement shows financial position?
Correct answer is: B. Balance Sheet
Balance sheet shows assets, liabilities and equity
What is retained earnings?
Correct answer is: B. Profit kept in business
Retained earnings are reinvested profits
What is working capital?
Correct answer is: B. Current assets minus current liabilities
Working capital measures short-term financial health
What is an asset?
Correct answer is: B. A resource owned by business
Assets provide future economic benefit
Which is a source of long-term finance?
Correct answer is: C. Equity shares
Equity shares provide permanent capital
What is depreciation?
Correct answer is: B. Allocation of asset cost over time
Depreciation spreads asset cost over useful life
What is capital budgeting?
Correct answer is: B. Long-term investment decision process
Capital budgeting evaluates long-term projects
What is capital structure?
Correct answer is: B. Combination of debt and equity
It defines financing mix
Which is a current asset?
Correct answer is: C. Inventory
Inventory is converted into cash within a year
What is financial leverage?
Correct answer is: B. Use of debt in capital structure
Leverage refers to borrowing funds
Which cost is a fixed cost?
Correct answer is: B. Rent of building
Fixed costs remain constant regardless of output
What is budgeting?
Correct answer is: B. Process of planning income and expenses
Budgeting controls financial planning
What is a cash flow statement?
Correct answer is: B. Statement of cash inflows and outflows
It shows cash movement during period
What is break-even point?
Correct answer is: A. Profit equals zero point
No profit no loss situation
Which is a short-term financial decision?
Correct answer is: C. Working capital management
Short-term finance manages daily operations
What is the main assumption of MM dividend irrelevance theory?
Correct answer is: D. All of the above