Which is not a capital budgeting technique?
Correct answer is: D. Current ratio
Current ratio is liquidity measure.
Financial Management Mcqs
here are key Multiple Choice Questions (MCQs) on Financial Management, covering core topics like capital budgeting, cost of capital, and financial analysis.
Financial management primarily aims to:
Correct answer is: C. Maximize shareholder wealth
The main goal is wealth maximization of shareholders.
Which decision is related to capital budgeting?
Correct answer is: C. Long-term investment decision
It involves long-term investment planning.
Which is a long-term source of finance?
Correct answer is: C. Equity shares
Equity is long-term financing.
Time value of money means:
Correct answer is: B. Money gains value over time
Money today is worth more than future.
Cost of capital is:
Correct answer is: A. Return expected by investors
It reflects investor expectations.
Risk-return tradeoff means:
Correct answer is: C. High risk high return
Higher risk gives higher return.
A positive NPV indicates:
Correct answer is: C. Profitability
Positive NPV means project is profitable.