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.
A.
Current asset
B.
Current liability
C.
Fixed asset
D.
Long-term liability
Correct answer is:
B. Current liability
Financial Management Mcqs
A.
Lower; lower
B.
Higher; lower
C.
Higher; higher
D.
Lower; higher
Correct answer is:
B. Higher; lower
Financial Management Mcqs
A.
Liquidity risk
B.
Market risk of a stock
C.
Inflation risk
D.
Credit risk
Correct answer is:
B. Market risk of a stock
Financial Management Mcqs
A.
Tax benefit
B.
Ownership at end
C.
No fixed payment
D.
Low cost maintenance
Correct answer is:
A. Tax benefit
Financial Management Mcqs
A.
Volatility and interest rate
B.
Stock price and exercise price
C.
Interest rate and stock price
D.
Exercise price and volatility
Correct answer is:
B. Stock price and exercise price
Financial Management Mcqs
A.
Gross working capital
B.
Permanent working capital
C.
Temporary working capital
D.
Net working capital
Correct answer is:
D. Net working capital
Financial Management Mcqs
A.
Equity shareholders
B.
Preference shareholders
C.
Debenture holders
D.
Retained earnings
Correct answer is:
C. Debenture holders
Financial Management Mcqs
A.
Inflation only
B.
Risk and return only
C.
Capital structure only
D.
Risk and return and capital structure
Correct answer is:
D. Risk and return and capital structure
Financial Management Mcqs
A.
Lower fixed costs
B.
Higher selling prices per unit
C.
Higher production costs per unit of output
D.
Lower output level
Correct answer is:
C. Higher production costs per unit of output
Financial Management Mcqs
A.
Deciding credit terms
B.
Inventory management
C.
Buying a new factory
D.
Issuing dividends
Correct answer is:
C. Buying a new factory
Financial Management Mcqs
A.
Weighted Average Cost of Capital
B.
Working Average Cost of Capital
C.
Weighted Average Capital Cost
D.
Western Average Cost of Capital
Correct answer is:
A. Weighted Average Cost of Capital
Financial Management Mcqs
A.
Dividend irrelevance theory (MM)
B.
Bird-in-hand theory
C.
Clientele effect
D.
All of the above
Correct answer is:
D. All of the above
Financial Management Mcqs
A.
Contribution / EBIT
B.
EBIT / Sales
C.
Fixed cost / Contribution
D.
Sales / EBIT
Correct answer is:
A. Contribution / EBIT
Financial Management Mcqs
A.
Maximize current liabilities
B.
Maintain optimal balance of current assets and liabilities
C.
Maximize fixed assets
D.
Minimize cash balance
Correct answer is:
B. Maintain optimal balance of current assets and liabilities
Financial Management Mcqs
A.
Maximize sales
B.
Maximize profit
C.
Maximize shareholder wealth
D.
Minimize costs
Correct answer is:
C. Maximize shareholder wealth
Financial Management Mcqs
A.
Trade credit
B.
Bank overdraft
C.
Equity shares
D.
Commercial paper
Correct answer is:
C. Equity shares
Financial Management Mcqs
A.
Net Positive Value
B.
Net Present Value
C.
Nominal Present Value
D.
Net Profit Value
Correct answer is:
B. Net Present Value
Financial Management Mcqs
A.
Debt-equity ratio
B.
Current ratio
C.
Gross profit ratio
D.
Return on equity
Correct answer is:
B. Current ratio
Financial Management Mcqs
A.
Always higher
B.
Always lower
C.
Generally equal but no flotation cost
D.
Zero
Correct answer is:
C. Generally equal but no flotation cost
Financial Management Mcqs
A.
NPV
B.
IRR
C.
Payback ratio
D.
Current ratio
Correct answer is:
D. Current ratio
Explanation:
Current ratio is liquidity measure.
Financial Management Mcqs