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 📖 Read Detailed Explanation → Financial Management Mcqs Leave a Comment | Umar
Dividend policy affects: A. Production B. Shareholder wealth C. Marketing D. Sales Correct answer is: B. Shareholder wealth 📖 Read Detailed Explanation → Financial Management Mcqs Leave a Comment | Umar
Which decision is related to capital budgeting? A. Dividend decision B. Working capital decision C. Long-term investment decision D. Financing decision Correct answer is: C. Long-term investment decision 📖 Read Detailed Explanation → Financial Management Mcqs Leave a Comment | Umar
A. Dividend decision B. Working capital decision C. Long-term investment decision D. Financing decision
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 📖 Read Detailed Explanation → Financial Management Mcqs Leave a Comment | Umar
Time value of money means: A. Money loses value over time B. Money gains value over time C. Value of money is constant D. No relation with time Correct answer is: B. Money gains value over time 📖 Read Detailed Explanation → Financial Management Mcqs Leave a Comment | Umar
A. Money loses value over time B. Money gains value over time C. Value of money is constant D. No relation with time
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 📖 Read Detailed Explanation → Financial Management Mcqs Leave a Comment | Umar
NPV stands for: A. Net Present Value B. New Profit Value C. Net Price Value D. Normal Present Value Correct answer is: A. Net Present Value 📖 Read Detailed Explanation → Financial Management Mcqs Leave a Comment | Umar
Risk-return tradeoff means: A. High risk low return B. Low risk high return C. High risk high return D. No relation Correct answer is: C. High risk high return 📖 Read Detailed Explanation → Financial Management Mcqs Leave a Comment | Umar
A positive NPV indicates: A. Loss B. Break-even C. Profitability D. Risk Correct answer is: C. Profitability 📖 Read Detailed Explanation → Financial Management Mcqs Leave a Comment | Umar
Which is not part of working capital? A. Cash B. Inventory C. Machinery D. Receivables Correct answer is: C. Machinery 📖 Read Detailed Explanation → Financial Management Mcqs Leave a Comment | Umar
IRR is defined as: A. Discount rate with zero NPV B. Interest rate charged C. Simple rate of return D. Average return Correct answer is: A. Discount rate with zero NPV 📖 Read Detailed Explanation → Financial Management Mcqs Leave a Comment | Umar
Financial planning involves: A. Short-term only B. Long-term only C. Both short and long term D. No planning Correct answer is: C. Both short and long term 📖 Read Detailed Explanation → Financial Management Mcqs Leave a Comment | Umar
Which is a short-term financing source? A. Equity shares B. Debentures C. Trade credit D. Bonds Correct answer is: C. Trade credit 📖 Read Detailed Explanation → Financial Management Mcqs Leave a Comment | Umar
Which ratio measures profitability? A. Current ratio B. Debt ratio C. Net profit margin D. Quick ratio Correct answer is: C. Net profit margin 📖 Read Detailed Explanation → Financial Management Mcqs Leave a Comment | Umar
Working capital is: A. Fixed assets B. Current assets minus current liabilities C. Long-term funds D. Net profit Correct answer is: B. Current assets minus current liabilities 📖 Read Detailed Explanation → Financial Management Mcqs Leave a Comment | Umar
Which is not a function of finance manager? A. Investment decision B. Financing decision C. Production decision D. Dividend decision Correct answer is: C. Production decision 📖 Read Detailed Explanation → Financial Management Mcqs Leave a Comment | Umar
Liquidity refers to: A. Profitability B. Ability to pay short-term obligations C. Long-term growth D. Investment capacity Correct answer is: B. Ability to pay short-term obligations 📖 Read Detailed Explanation → Financial Management Mcqs Leave a Comment | Umar
Break-even point occurs when: A. Profit is maximum B. Revenue equals cost C. Loss occurs D. Fixed cost is zero Correct answer is: B. Revenue equals cost 📖 Read Detailed Explanation → Financial Management Mcqs Leave a Comment | Umar
Which ratio measures liquidity? A. Debt ratio B. Current ratio C. Profit margin D. Return on equity Correct answer is: B. Current ratio 📖 Read Detailed Explanation → Financial Management Mcqs Leave a Comment | Umar
Capital structure refers to: A. Asset mix B. Debt and equity mix C. Revenue mix D. Cost structure Correct answer is: B. Debt and equity mix 📖 Read Detailed Explanation → Financial Management Mcqs Leave a Comment | Umar
Which source is cheapest? A. Equity B. Debt C. Preference shares D. Retained earnings Correct answer is: D. Retained earnings 📖 Read Detailed Explanation → Financial Management Mcqs Leave a Comment | Umar
Financial leverage refers to: A. Use of debt B. Use of equity C. Use of assets D. Use of cash Correct answer is: A. Use of debt 📖 Read Detailed Explanation → Financial Management Mcqs Leave a Comment | Umar
High leverage means: A. Low risk B. High risk C. No risk D. Stable income Correct answer is: B. High risk 📖 Read Detailed Explanation → Financial Management Mcqs Leave a Comment | Umar
Payback period measures: A. Profitability B. Liquidity C. Time to recover investment D. Risk Correct answer is: C. Time to recover investment 📖 Read Detailed Explanation → Financial Management Mcqs Leave a Comment | Umar