Financial leverage refers to:
Correct answer is: A. Use of debt
Debt increases returns and risk.
Human Resource Management (HRM) MCQS
Multiple choice Questions on Human Resource Management. Practice for fpsc ppsc exams
📚 Table of Content
Which is not a capital budgeting technique?
Correct answer is: D. Current ratio
Current ratio is liquidity measure.
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.
Financial planning involves:
Correct answer is: C. Both short and long term
It covers all financial decisions.
Which is a short-term financing source?
Correct answer is: C. Trade credit
Trade credit is short-term.
Which ratio measures profitability?
Correct answer is: C. Net profit margin
It shows earning efficiency.
Working capital is:
Correct answer is: B. Current assets minus current liabilities
It represents liquidity.
Which is not a function of finance manager?
Correct answer is: C. Production decision
Production is not finance function.
Liquidity refers to:
Correct answer is: B. Ability to pay short-term obligations
Liquidity ensures short-term solvency.
Which ratio measures liquidity?
Correct answer is: B. Current ratio
Current ratio measures liquidity.
Capital structure refers to:
Correct answer is: B. Debt and equity mix
It shows financing sources mix.
In Pakistan, the provincial government’s HR is managed by:
Correct answer is: B. Provincial Services and General Administration Department