This quiz works best with JavaScript enabled. Home > Finance > Management > Financial Management > Financial Management – Quiz 16 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 16 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Managers of corporations need to act in an ethical manner A) Because ethics violations will be punished by the law. B) Because a business must be trusted by investors, customer and the public if it is to succeed. C) Because business managers must answer to a higher authority. D) Because ethical behavior is its own justification. Show Answer Correct Answer: B) Because a business must be trusted by investors, customer and the public if it is to succeed. 2. Portfolio Investment is dealing in A) Same securities. B) Short term investment. C) Different security. D) None. Show Answer Correct Answer: C) Different security. 3. Siskiyou, Inc. has total current assets of $ 1, 200, 000; total current liabilities of $ 500, 000; and long-term assets of $ 800, 000. How much is the firm's Total Liabilities & Equity? A) $ 1, 300, 000. B) $ 2, 000, 000. C) $ 1, 800, 000. D) $ 2, 500, 000. Show Answer Correct Answer: B) $ 2, 000, 000. 4. A debt evidenced by a "note" which specifies the principal amount, interest rate, and date of repayment. A) Loan. B) Principal. C) Credit. D) None of above. Show Answer Correct Answer: A) Loan. 5. Short term unsecured promissory notes that is generally sold by large corporation on discount basis with the maturity period from 1 to 270 days. The statement is best described for ..... A) Common stocks. B) Bonds. C) Commercial paper. D) Preferred shares,. Show Answer Correct Answer: C) Commercial paper. 6. At its most basic level, the function of financial intermediaries is to ..... A) Track and report interest rates. B) Move money from lenders to borrowers and back again. C) Report all financial transactions to the federal government. D) Effect a transfer of wealth in society. Show Answer Correct Answer: B) Move money from lenders to borrowers and back again. 7. To develop a long term financial plan, the key aspects to be considered are A) Inflation rate. B) Interest rate. C) Personal health. D) All above. Show Answer Correct Answer: D) All above. 8. Under secondary market, sale of securities take place between A) (a) Company and Investors. B) (b) Company and Company. C) C) Investor and other investor. D) (d) None of the above. Show Answer Correct Answer: C) C) Investor and other investor. 9. James is a rational investor wishing to maximize his return over a 20-year period. The current yield curve is inverted with one-year rates at 5.00% and 20-year rates at 3.50%. James will invest in the lower-rate 20-year bonds if: A) He thinks rates will fall in the future and locking in long-term rates today may provide the highest long-run average return. B) He thinks rates will rise in the future and locking in long-term rates today may provide the lowest long-run average return. C) He thinks rates will remain flat at 5% in the future and locking in long-term rates today will prevent him from appearing greedy to those without this investment opportunity. D) He thinks rates will rise in the future and locking in long-term rates today may provide the highest long-run average return. Show Answer Correct Answer: A) He thinks rates will fall in the future and locking in long-term rates today may provide the highest long-run average return. 10. Petrol cost $ .10 per gallon in 1930. Over the next 60 years, the price rose at an average rate of 4.42% per year. Based on this information, what was the average price of a gallon of petrol in 1990? A) $ 2.75 per gallon. B) $ 1.53 per gallon. C) $ 2.65 per gallon. D) $ 1.34 per gallon. Show Answer Correct Answer: C) $ 2.65 per gallon. 11. It determines the economic worth in the exchange process. A) Money as a standard of value. B) Money as a medium of exchange. C) Money as a store of value. D) Money as a payment. Show Answer Correct Answer: A) Money as a standard of value. 12. Which of the following is/are the financial management process? A) Setting goals. B) Evaluating financial status. C) Creating financial and revising the progress. D) All the above. Show Answer Correct Answer: D) All the above. 13. Which is not a major decision in Financial Management A) Investment Decision. B) Dividend Decision. C) Operations Decision. D) Financing Decision. Show Answer Correct Answer: C) Operations Decision. 14. An advantage of a savings account is that it earns more interest than most checking accounts. A) True. B) False. Show Answer Correct Answer: A) True. 15. Taxes are fees that the government ..... people to pay in order to live and work in their state and the USA. A) Requires. B) Does not require. Show Answer Correct Answer: A) Requires. 16. The following are factors that may affect feasibility of a long-term financial plan except A) Government policy. B) Interest rate. C) Insurance. D) Inflation. Show Answer Correct Answer: C) Insurance. 17. RETURN ON INVESTMENT IS 15% AND RATE OF INTEREST IS 20%. DEBT WILL BE A) UNFAVOURABLE. B) FAVOURABLE. Show Answer Correct Answer: A) UNFAVOURABLE. 18. Conditions for accepting an investment A) IRR is greater than the reference rate. B) NPV Positif. C) Profitability Index is greater than 1. D) All previous answers are correct. Show Answer Correct Answer: D) All previous answers are correct. 19. How do you Manage School Finances Effectively? A) Monitor data, public policy, and legislation continuously. B) Create a strategic three-to-five-year plan. C) Minimize unnecessary administrative costs. D) All of the above. Show Answer Correct Answer: D) All of the above. 20. Eddie buys new ear buds for $ 107.36, he gives the store clerk $ 120.00, what change should he get back? A) $ 11.64. B) $ 9.46. C) $ 20.00. D) $ 12.64. Show Answer Correct Answer: D) $ 12.64. 21. Tejado Supply has total equity of $ 1, 830, fixed assets of $ 2, 170, long-term debt of $ 740, and short-term debt of $ 430. What is the amount of Tejado's current assets? A) $ 660. B) $ 830. C) $ 400. D) None of above. Show Answer Correct Answer: B) $ 830. 22. ..... is the area of finance concerned with the activities of buying and selling financial assets such as stocks and bonds. A) Investments. B) Corporate finance. C) International finance. D) Financial markets and institutions. Show Answer Correct Answer: A) Investments. 23. Net Income approach proposes that there is a definite relationship between Capital Structure and ..... A) Earnings. B) EBIT. C) Value of the firm. D) Cost of Capital. Show Answer Correct Answer: C) Value of the firm. 24. What day are financial managent lectures A) Thursday. B) Monday. C) Friday. D) Tuesday. E) Wednesday. Show Answer Correct Answer: D) Tuesday. 25. What is ignored in Principle of Profit Maximization? A) Time Value of Money. B) Risk. C) Wealth Creation. D) All of the above. Show Answer Correct Answer: D) All of the above. 26. Value for money is an important objective for not-for-profit organizations. Which of the following actions is consistent with increasing value for money? A) Using a cheaper source of goods and thereby decreasing the quality of not-for-profit organization services. B) Searching for ways to diversify the finances of the not-for-profit organization. C) Decreasing waste in the provision of a service by the not-for-profit organization. D) Focusing on meeting the financial objectives of the not-for-profit organization. Show Answer Correct Answer: C) Decreasing waste in the provision of a service by the not-for-profit organization. 27. Which of the statement is not true? A) Debenture is a creditorship security. B) Ownership securities are represented by debentures. C) Retained profit is an internal source of financing. D) All of the above. Show Answer Correct Answer: B) Ownership securities are represented by debentures. 28. Purchase of treasury stock A) Investing Activities. B) Financing Activites. C) Operating Activities. D) None of above. Show Answer Correct Answer: B) Financing Activites. 29. Which of the following is not an objective of financial management? A) Mobilization of funds at an acceptable cost. B) Maximization of profits. C) Maximization of wealth of shareholders. D) Ensuring discipline in the organization. Show Answer Correct Answer: D) Ensuring discipline in the organization. 30. The service industry usually provides intangible products and services that cannot be felt by touch but can be felt by seen or heard. A) False. B) True. Show Answer Correct Answer: B) True. ← PreviousNext →Related QuizzesManagement QuizzesFinance QuizzesFinancial Management Quiz 1Financial Management Quiz 2Financial Management Quiz 3Financial Management Quiz 4Financial Management Quiz 5Financial Management Quiz 6Financial Management Quiz 7Financial Management Quiz 8 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books