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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 decisions involve:

A. Investment decision only
B. Financing decision only
C. Dividend decision only
D. All of the above: Investment, financing, and dividend decisions
Correct answer is: D. All of the above: Investment, financing, and dividend decisions

Contribution in break-even analysis is best expressed as:

A. Selling price minus absorption cost per unit
B. Selling price minus fixed cost per unit
C. Selling price minus variable cost per unit
D. Selling price minus total cost per unit
Correct answer is: C. Selling price minus variable cost per unit

What is the purpose of financial management?

A. Procurement and effective use of funds
B. Maximize revenue only
C. Minimize expenses only
D. Increase market share
Correct answer is: A. Procurement and effective use of funds

The money markets primarily deal with:

A. Securities with a life of more than one year
B. Long-term securities such as common stock
C. Short-term securities
D. Real estate investments
Correct answer is: C. Short-term securities

Which of the following statements about careers is INCORRECT?

A. The career choice is restricted to students completing their education
B. Many people change their career over time
C. A shift to a new career should be influenced by your views of satisfaction
D. Financial planning should align with career decisions
Correct answer is: A. The career choice is restricted to students completing their education
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