This quiz works best with JavaScript enabled. Home > Finance > Management > Financial Management > Financial Management – Quiz 31 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 31 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A government has adopted a contractionary fiscal policy. How would this typically affect businesses? A) Higher interest rates and higher inflation. B) Lower taxes and higher government subsidies. C) Higher taxes and lower government subsidies. D) Lower inflation and lower interest rates. Show Answer Correct Answer: C) Higher taxes and lower government subsidies. 2. All of the following are primary sources of income except? A) Employment paycheck. B) Interest. C) Loans. D) Tips. Show Answer Correct Answer: C) Loans. 3. If existing shareholders want to exercise complete control them they should prefer debt. A) False. B) True. Show Answer Correct Answer: B) True. 4. Federal agency debt A) Long term debt. B) Short term debt. Show Answer Correct Answer: A) Long term debt. 5. Dividend is distributed through A) Capital. B) Asset. C) Profits. D) Debt. Show Answer Correct Answer: C) Profits. 6. It is the study of how the players in a financial system acquire, spend, manage, and make other sound financial decisions concerning money and other financial resources. A) Business. B) Finance. C) Money. D) Instrument. Show Answer Correct Answer: B) Finance. 7. If taxes are ignored, MM approach is identical to A) NI Approach. B) Traditional Approach. C) NOI Approach. D) Non of the above. Show Answer Correct Answer: A) NI Approach. 8. A bank account where you can store money you don't need right away but keep it easily available and safe. You usually earn interest on this type of account. A) FICO score. B) Checking Account. C) Savings account. D) Credit. Show Answer Correct Answer: C) Savings account. 9. If the present value of the cash flow X is $ 200, and the present value cash flow Y is $ 150, then the present value of the combined cash flow is: A) $ 150. B) $ 350. C) $ 50. D) $ 200. Show Answer Correct Answer: B) $ 350. 10. The T in SMART Goal Stands for A) Timely. B) Terrific. C) Tardy. D) None of above. Show Answer Correct Answer: A) Timely. 11. Are the following statements true or false? True False 1. Accounting profit is not the same as economic profit. 2. Profit takes account of risk. 3. Accounting profit can be manipulated by managers. A) False, False, True. B) True, False, False. C) True, True, False. D) True, False, True. Show Answer Correct Answer: D) True, False, True. 12. A firm gains access to contemporary market through an acquisition A) Vertical merger. B) Market extension merger. C) Acquisition premium. D) Hostile takeover. Show Answer Correct Answer: A) Vertical merger. 13. Chloe, Angel, and Xavier are planning to start a new venture. They are discussing the importance of financial planning in their business. Can you explain it to them? A) Financial planning is not important in their business. B) Financial planning is only important for their personal finance management. C) Financial planning is important in their business because it helps in determining their short and long-term financial goals and creating a balanced plan to meet those goals. D) Financial planning only helps in controlling the financial resources of their business. Show Answer Correct Answer: C) Financial planning is important in their business because it helps in determining their short and long-term financial goals and creating a balanced plan to meet those goals. 14. It is the study of how individuals or businesses evaluate investment opportunities, business proposals and business projects, and raise capital to fund them. A) Evaluating Investments. B) Financial Management. C) Finance. D) Financial Institution. Show Answer Correct Answer: C) Finance. 15. Public finance is the study of money management of individual. A) TRUE. B) FALSE . Show Answer Correct Answer: B) FALSE . 16. ..... money paid by the borrower for the use of money that was loaned to him/her A) Interest. B) Income. C) Loan. D) Debt. Show Answer Correct Answer: A) Interest. 17. Which technique in financial management enable us to take investment/expansion decisions? A) Working Capital Management. B) Capital Structure. C) Capital Budgeting. D) Ratio Analysis. Show Answer Correct Answer: C) Capital Budgeting. 18. What is the difference between load fund and no-load fund? A) Load fund is when you pay the fee intermittently while the no-load is when you pay it up-front. B) Load fund is when you pay a fee and no-load is when you don't pay a fee. C) Load fund is when you pay upfront and no-load is whne you pay at the end. D) Load fund is when you pay no fee and no-load is when you pay a fee. E) Load fund is when you pay the fee at the end while no-laod is when you pay upfront. Show Answer Correct Answer: C) Load fund is when you pay upfront and no-load is whne you pay at the end. 19. Under financial management a forecast of receipts and payments is made andthe shortage or sufficiency of ..... is ensured. A) Capital. B) Human resource. C) Material. D) All the above. Show Answer Correct Answer: A) Capital. 20. The contract evidencing the existence of partnership A) Service Contract. B) Contract of Partnership. C) Articles of Partnership. D) Articles of Incorporation. Show Answer Correct Answer: C) Articles of Partnership. 21. Dividends are paid on a ..... basis A) Monthy. B) Daily. C) Semesterly. D) Yearly. E) Quarterly. Show Answer Correct Answer: E) Quarterly. 22. Present value (PV) is the current value of a ..... sum of money or stream of cash flows given a specified rate of return. A) Present. B) Future. C) Small. D) Large. Show Answer Correct Answer: B) Future. 23. Things you can live without A) Goals. B) Needs. C) Plans. D) Wants. Show Answer Correct Answer: D) Wants. 24. In February 2020, Mr Daniel received a total income of RM4 500. His monthly fixed expenses and variable expenses are RM2 880 and RMx respectively. There is a negative cash flow of RM620. Calculate the value of x? A) 3 500. B) 1 000. C) 3 880. D) 2 240. Show Answer Correct Answer: D) 2 240. 25. Charged when a cardholder does not make the minimum monthly payment by the due date. A) Over-the-limit fee. B) Late-payment fee. C) Annual fee. D) You are so forgetful fee. Show Answer Correct Answer: B) Late-payment fee. 26. ..... allows business founders to harvest some of their wealth. A) Initial Private Offering. B) Initial Public Offering. C) Internal Public Offering. D) Internal Private Offering. Show Answer Correct Answer: B) Initial Public Offering. 27. The market price of a share of common stock is determined by: A) The board of directors of the firm. B) The stock exchange on which the stock is listed. C) The president of the company. D) Individuals buying and selling the stock. Show Answer Correct Answer: D) Individuals buying and selling the stock. 28. What is the main disadvantage of a sole proprietorship compared to a corporation? A) Unlimted liability of the owner. B) More difficult taxation rules. C) More disclosure requirements to inform the public. D) More costly to set up. Show Answer Correct Answer: A) Unlimted liability of the owner. 29. A school decides to have larger classes, and examination results suffer as a result. In terms of the 'value for money' framework, which of the following statements is true? A) Economy has increased but efficiency has decreased. B) Efficiency has increased but effectiveness has decreased. C) Economy has increased but effectiveness has decreased. D) Economy has increased but efficiency and effectiveness have decreased. Show Answer Correct Answer: C) Economy has increased but effectiveness has decreased. 30. Which is an example of an Electronic Funds Transfer? A) Direct Deposit. B) Dividend payout. C) Paper payroll check. D) Monopoly money payment. Show Answer Correct Answer: A) Direct Deposit. ← 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