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Chapter 3 MCQ, , FM 3” Chapter MCQ, , —___ is concerned with the duties of the financial managers in the business firm., A. Financial Management, , B. Accounting Management, , C. Personnel Management, , D. Merger, , View Answer, , A. Financial Management, , The financial management function has become ____ and complex., , A. Less demanding, , B. More demanding, , C. Less important, , D. Outdated, , View Answer, , B. More demanding, , The approach of financial management provides analytical framework for, financial problems., , A. Classical, , B. Traditional, , C. Modern, , D. Empirical, , View Answer, , C. Modern, , The approach of financial management fully ignores the internal decision-making., A. Business finance, , B. Traditional, , C. Modern, , D. two sided, , View Answer, , B. Traditional, , is the main goal of financial management., , A. profit maximization, , B. fund transfer, , C. maximum returns, , D. wealth maximization, , View Answer, , D. wealth maximization, , The main objective of financial management of an enterprise is to, , A. maximize the business expenses, , B. maximize the profit, , C. maintain bill and payments, , D. maximise the production costs, , View Answer, , B. maximize the profit, The full form of GST is, , , , , , , , , , Prepared By Prof Shaikh R P, ENTC Dept

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Chapter 3 MCQ, , A. Good & Simple Tax, B. Goods & Sales Tax, C. Goods & Services Tax, D. Goods & Salary Tax, View Answer, C. Goods & Services Tax, For maximizing the profit, production is to be, A. minimized, B. ignored, C. maximized, D. downsized, View Answer, C. maximized, The concept of Financial management is mainly related to, A. arrangement of funds for the company, B. procurement & utilization of funds for company operations, C. profit maximization for the organization, D. accounting of profit and loss on yearly basis, View Answer, B. procurement & utilization of funds for company operations, For maximizing the profit, the costs should be ., A. minimized, B. ignored, C. maximized, D. upgraded, View Answer, A. minimized, The full form of CAPM is, A. Capital access pricing model, B. Capital assessment pricing model, C. Capital advantage pricing model, D. Capital asset pricing model, View Answer, D. Capital asset pricing model, maximization objectives fail to recognize quality of benefits i.e. risk factor., A. Value, B. Wealth, C. Profit, D. BothA &B, View Answer, C. Profit, Maximization objective ignores timing of benefit i.e time value of money., A. Profit, B. Wealth, C. Value, D. BothA &B, , , , , , , , , , , , Prepared By Prof Shaikh R P, ENTC Dept

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Chapter 3 MCQ, , View Answer, C. Profit, Financial Management is mainly concerned with, A. acquiring financial resources for firms activities, B. utilizing financial resources for firms activities, C. procurement of funds of the enterprise, D. All of the above, View Answer, D. All of the above, Select correct option., A. Profits maximisation can be part of a Wealth maximisation strategy, B. Wealth maximisation can be part of a Profits maximisation strategy, C. Profits maximisation and Wealth maximisation strategy are the same, D. Wealth maximisation is completely different from Profits maximisation strategy, View Answer, A. Profits maximisation can be part of a Wealth maximisation strategy, According to Massie, Financial management is the ____activity of a business., A. operational, B. marketing, C. human resource management, D. sales, View Answer, A. operational, Financial management process deals with, A. investments, B. financing decisions, C. profit maximization, D. more assets, View Answer, B. financing decisions, Financial management mainly focuses on, A. Arrangement of funds, B. Efficient management of every business, C. Brand dimension, D. All elements of acquiring and using means of financial resources for financial, activities, View Answer, D. All elements of acquiring and using means of financial resources for financial, activities, Financial management is an, A. organic, B. inorganic, C. conventional, D. least important, View Answer, A. organic, , , , , , function of any business., , , , Prepared By Prof Shaikh R P, ENTC Dept

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Chapter 3 MCQ, , Investment can be defined as, , A) Person's dedication to purchasing a house or flat, B) Use of capital on assets to receive returns, , C) Usage of money on a production process of products and services, D) Net additions made to the nation’s capital stocks, Answer: B, , Q2. The concept of Financial management is, , A) Profit maximization, , B) All features of obtaining and using financial resources for company operations, C) Organization of funds, , D) Effective Management of every company, Answer: B, , Q3. What is the primary goal of financial management?, A) To minimise the risk, , B) To maximise the owner's wealth, , C) To maximise the return, , D) To raise profit, , Answer: B, , Q4. GST is a consumption of goods and service tax based on., A) Development, , B) Dividend, , C) Duration, , D) Destination, , Answer: D, , Q5. The finance manager is accountable for., , A) Earning capital assets of the company, , B) Effective management of a fund, , C) Arrangement of financial resources, , D) Proper utilisation of funds, , Answer: C, , Q6. The market value of the shares is decided by, , A) The investment market, , B) The government, , C) Shareholders, , D) The respective companies, , Answer: A, , Q7. The capital budget is associated with., , A) Long terms and short terms assets, , B) Fixed assets, , C) Long terms assets, , D) Short term assets, , Answer: C, , Q8. CAPM stands for., , A) Capital asset pricing model., , Prepared By Prof Shaikh R P, ENTC Dept

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Chapter 3 MCQ, , B) Capital amount printing model., , C) Capital amount pricing model., , D) Capital asset printing model., , Answer: A, , Q9. What does financial leverage measure?, , A) No change with EBIT and EPS, , B) The sensibility of EBIT with % change with respect to output, C) The sensibility of EPS w.r.t % change in the EBIT level, , D) % variation in the level of production, , Answer: C, , Q10. From the below-mentioned items which are financial assets?, A) Machines, , B) Bonds, , C) Stocks, , D) Bandc, , Answer: D, , In which market the newly issued securities and share are bought or sold during initial, public, , Offerings(IPO)?, , (a) Primary market, , (b) Secondary market, , (c) Insurance markets, , (d) Investment Market, , Ans-(a) Primary market, , 2. The equity shares are classified as blue chip shares, growth shares, income shares,, cyclical shares, defensive shares and speculative shares by the stock market on the, basis of their, , (a) Risk exposure, , (c) Return potential, , (b) Both of these, , (d) None of these, , Ans-(b) Both of these, , 3. Which market provides instruments for managing the financial risk?, , (a) Money market, , (b) Bond market, , (c) Derivatives market, , (d) Commodity market, , Ans-(c) Derivatives market, , 4. Which market provide finance for long term purpose ?, , (a) Money market, , (b) Capital market, , (c) Both of these, , (d) None of these, , Ans-(b) Capital market, , 5. Equity shares are known as:, , Prepared By Prof Shaikh R P, ENTC Dept