This quiz works best with JavaScript enabled. Home > Finance > Management > Financial Management > Financial Management – Quiz 19 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 19 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. With the help of the financial planning a situation of continuous ..... can be maintained. A) Minimum Capital. B) Liquidity. C) Maximum Capital. D) (b) and (c). Show Answer Correct Answer: B) Liquidity. 2. The finance field includes three main subcategories: ..... finance, ..... finance, and public (government) finance. A) Family, corporate. B) Individual, corporate. C) Personal, corporate. D) Private, corporate. Show Answer Correct Answer: C) Personal, corporate. 3. What is it called when you own a % of the employer contributions? A) 401k. B) Vested. C) Contribution match. D) Roll over. E) Employee match. Show Answer Correct Answer: B) Vested. 4. How can businesses typically finance their growth? A) Borrowing capital. B) Cutting marketing expenses. C) Reducing product offerings. D) Downsizing the workforce. Show Answer Correct Answer: A) Borrowing capital. 5. What is the goal of the firm according to shareholder's wealth maximization? A) Maximizing total earnings. B) Emphasizing short-term targets. C) Considering risk and uncertainty. D) Increasing the market value of common stock. Show Answer Correct Answer: A) Maximizing total earnings. 6. ..... is defined in financial terms as the chance that an outcome or investment's actual gains will differ from an expected outcome or return A) Annuity. B) Return. C) Risk. D) Perpetuity. Show Answer Correct Answer: C) Risk. 7. An asset that derives value from a contractual Claim is called as A) Real asset. B) Tangible asset. C) Fictitious asset. D) Financial asset. Show Answer Correct Answer: D) Financial asset. 8. Wealth Maximisation is directly linked with A) Employee Turnover. B) Factory Efficiency. C) Market Capitalisation. D) JIT. Show Answer Correct Answer: C) Market Capitalisation. 9. Primary objective of financial management is A) Safety of funds. B) Availability of funds. C) Effective use of funds. D) Maximizing shareholder's wealth. Show Answer Correct Answer: D) Maximizing shareholder's wealth. 10. It is considered to be the expansive goal of the firm. A) Valuation Approach. B) Social Responsibility. C) Maximization of Shareholder's Wealth. D) Ethical Behavior. Show Answer Correct Answer: C) Maximization of Shareholder's Wealth. 11. The movement of money from lender to borrower and back again is known as ..... A) The cycle of money. B) Money laundering. C) Corporate finance. D) The circle of life. Show Answer Correct Answer: A) The cycle of money. 12. Investment in current assets for longer duration is called fixed capital. A) True. B) False. Show Answer Correct Answer: B) False. 13. The efficient and effective management of funds. A) Financial Institution. B) Financial Management. C) Evaluating Investments. D) Finance. Show Answer Correct Answer: B) Financial Management. 14. Difference in what is owned, called assets, and what is owed, called liabilities is considered: A) Balance. B) Net Worth. C) Interest. D) Net Income. Show Answer Correct Answer: B) Net Worth. 15. A set of documents that outline essential financial facts about a new venture A) Owner's equity. B) Financial forecast. C) Budget. D) Financial plan. Show Answer Correct Answer: D) Financial plan. 16. Name the financial decision which relates to disposal of profits. A) Financing decision. B) Investment decision. C) Dividend decision. D) Capital budgeting decision. Show Answer Correct Answer: C) Dividend decision. 17. We bought a second home to rent. A) Donating. B) Investing. C) Spending. D) Saving. Show Answer Correct Answer: B) Investing. 18. Financial structure means A) Long term fund. B) Long term fund and current liabilities. C) Excess of liabilities over assets. D) None of the above. Show Answer Correct Answer: A) Long term fund. 19. The financial services sector is a ..... driver of a nation's economy. A) Tertiary. B) Secondary. C) Primary. D) Preliminary. Show Answer Correct Answer: C) Primary. 20. Isiah, Tessa, and Sarah are studying for their financial management exam. They are discussing the role of financial ratios. According to their understanding, what is the role of financial ratios in financial management? A) Isiah believes that financial ratios are only useful for large corporations. B) Tessa thinks that financial ratios can only be used for short-term financial analysis. C) Sarah says that financial ratios are irrelevant in financial management. D) They all agree that financial ratios help in analyzing and interpreting financial statements, assessing the financial health of a company, identifying areas of improvement, and making informed decisions. Show Answer Correct Answer: D) They all agree that financial ratios help in analyzing and interpreting financial statements, assessing the financial health of a company, identifying areas of improvement, and making informed decisions. 21. Joe works 50 hours and makes $ 12.50 an hour, what is his gross pay. (40 hrs. is a regular work week) A) $ 678.50. B) $ 187.50. C) $ 687.50. D) $ 500.00. Show Answer Correct Answer: C) $ 687.50. 22. Which of the following is NOT one of the five major types of insurance? A) Auto. B) House. C) Earthquake. D) None of above. Show Answer Correct Answer: C) Earthquake. 23. The income statement is sometimes called a profit and loss (P & L) statement. A) True. B) False. Show Answer Correct Answer: A) True. 24. The company's cost of capital is called ..... A) Leverage. B) Hurdle rate. C) Return rate. D) Risk rate. Show Answer Correct Answer: B) Hurdle rate. 25. Cost of advertising and printing prospectus is called A) Dividend cost. B) Debt cost. C) Equity cost. D) Floatation cost. Show Answer Correct Answer: D) Floatation cost. 26. All of these are actions creditors can take when individuals don't pay their loans EXCEPT A) Blackmail. B) Repossession. C) Wage garnishment. D) Foreclosure. E) Suing the borrower. Show Answer Correct Answer: A) Blackmail. 27. Companies (A) and (B) are both profitable, and they have the same total assets (TA), Sales (S), return on assets (ROA), and profit margin (PM). However, Company (A) has the higher debt ratio. Which of the following statements is CORRECT?Companies (A) and (B) are both profitable, and they have the same total assets (TA), Sales (S), return on assets (ROA), and profit margin (PM). However, Company (A) has the higher debt ratio. Which of the following statements is CORRECT? A) Company (A) has a lower equity multiplier than Company (B). B) Company (A) has a higher ROE than Company (B). C) Company (A) has a higher fixed assets turnover than Company (B). D) Company (A) has a lower total assets turnover than Company (B). Show Answer Correct Answer: B) Company (A) has a higher ROE than Company (B). 28. 2 types of bank accounts are: A) Checking & Savings. B) Checking & Direct Deposit. C) Credit & Debit. D) Direct Deposit & Loan. Show Answer Correct Answer: A) Checking & Savings. 29. When a corporation sells common stock to the general public for the first time is called? A) Initial public offering. B) Preferred stock. C) Secondary market. D) Common stock. Show Answer Correct Answer: A) Initial public offering. 30. The time lag between procurement of raw material and its conversion into cash and cash equivalents, is called: A) Processing cycle. B) Production cycle. C) Lead time. D) Operating cycle. Show Answer Correct Answer: D) Operating cycle. ← 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