This quiz works best with JavaScript enabled. Home > Finance > Management > Financial Management > Financial Management – Quiz 33 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 33 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Most unsafe mode by which firms perform worldwide business is A) Establishment of new subsidiaries. B) Franchising. C) International trade. D) Licencing. Show Answer Correct Answer: A) Establishment of new subsidiaries. 2. You buy detergent for $ 11.98 for 64 ounces, what is the unit price? A) .19. B) .20. C) .17. D) .195. Show Answer Correct Answer: A) .19. 3. Which ratio indicates the proportion of each sales dollar that represents profit? A) Operating profit margin. B) Net profit margin. C) Return on investment. D) Gross profit margin. Show Answer Correct Answer: B) Net profit margin. 4. A business will make a profit IF A) Revenue equals expenses. B) Revenue is greater than expenses. C) Expenses decrease and revenue increases. D) Expenses are greater than revenue. Show Answer Correct Answer: B) Revenue is greater than expenses. 5. An owner's claim to the assets of the business A) Owner's equity. B) Financial forecast. C) Budget. D) Financial plan. Show Answer Correct Answer: A) Owner's equity. 6. Operating leverage x financial leverage= ..... A) Financial Combined Leverage. B) Combined Leverage. C) Operating Combined Leverage. D) Fixed leverage. Show Answer Correct Answer: B) Combined Leverage. 7. Kayla, Tyler, and Brie have started a new business. What should be the purpose of their financial management? A) The purpose of their financial management should be to solely focus on short-term financial goals. B) The purpose of their financial management should be to effectively manage the financial resources of the company. C) The purpose of their financial management should be to minimize the importance of financial resources. D) The purpose of their financial management should be to maximize profits at all costs. Show Answer Correct Answer: B) The purpose of their financial management should be to effectively manage the financial resources of the company. 8. ..... is used to estimate future free cash flows. A) Mission statement. B) Vision. C) Projected financial statement. D) Objectives. Show Answer Correct Answer: C) Projected financial statement. 9. If balance of an asset increases, cash flow operations will decrease. The statement is? A) I don't know. B) TRUE. C) FALSE. D) Neither TRUE nor FALSE. Show Answer Correct Answer: B) TRUE. 10. The value of an asset to a particular investor as determined by calculating the present value of the expected future cash flows at that investor's required rate of return, is the meaning of ..... A) Book Value. B) Equity Value. C) Market Value. D) Intrinsic Value. Show Answer Correct Answer: D) Intrinsic Value. 11. Companies with a higher growth pattern are likely to: A) Pay lower dividends. B) Pay higher dividends. C) Dividends are not affected by growth considerations. D) None of the above. Show Answer Correct Answer: A) Pay lower dividends. 12. A government follows an expansionary monetary policy. How would this typically affect businesses? A) Higher demand from customers, lower interest rates on loans and increased availability of credit. B) A contraction in demand from customers, higher interest rates and less available credit. C) Lower taxes, higher demand from customers but less government subsidies/available contracts. D) Lower interest rates, lower exchange rates and higher tax rates. Show Answer Correct Answer: A) Higher demand from customers, lower interest rates on loans and increased availability of credit. 13. A firm's unlevered beta must always be greater than its levered beta. A) True. B) False. C) Depends. D) None of above. Show Answer Correct Answer: B) False. 14. It means people can store their wealth in the form of money. Money acts as a ..... A) Checks. B) Medium of exchange. C) Standard of value. D) Store of value. Show Answer Correct Answer: D) Store of value. 15. The followings are the five financial management process.I. Evaluating financial statusII. Carrying out financial planIII. Reviewing and revising progressIV. Setting goals V. Create financial planWhich of the followings is the correct order of financial management process? A) I, IV, V, III, II. B) IV, I, V, II, III. C) I. IV, V, II, III. D) IV, I, V, III, II. Show Answer Correct Answer: B) IV, I, V, II, III. 16. In a primary financial market, existing financial instruments are traded among investors. A) FALSE . B) TRUE. Show Answer Correct Answer: A) FALSE . 17. What form do you need to complete before you start a new job? A) W-4. B) D-400. C) 1040EZ. D) W-2. Show Answer Correct Answer: A) W-4. 18. One of the problems associated with profit maximization is that it ignores the timing of a project's return. A) True. B) False. Show Answer Correct Answer: A) True. 19. John is single, 20 years old, and makes less than $ 100, 000 a year. He has no children. Which federal tax form should he use? A) 1040EZ. B) W-4. C) W-2. D) None of above. Show Answer Correct Answer: A) 1040EZ. 20. Internal Rate of Return (IRR) is: A) The discount rate that makes NPV positive. B) The discount rate that makes total undiscounted free cash flows zero. C) The discount rate that makes NPV zero. D) The discount rate that makes NPV negative. Show Answer Correct Answer: C) The discount rate that makes NPV zero. 21. While calculating the WACC, cost of each component of the capital is weighted- A) In the ratio of 1:2:3:4. B) By the relative proportion of that type of funds in the capital structure. C) By the relative proportion of that type of funds to total assets in the company. D) None. Show Answer Correct Answer: B) By the relative proportion of that type of funds in the capital structure. 22. What is the average CAGR (compounded annual growth rate) of Vinamilk's profit after tax from 2012 to 2021? A) 2.15%. B) 7.47%. C) 9.79%. D) None of above. Show Answer Correct Answer: B) 7.47%. 23. Company issues new securities in a primary market. A) FALSE. B) TRUE. Show Answer Correct Answer: B) TRUE. 24. Which is NOT a source of internal funds for SMEs? A) Profits retained in the business. B) Banking. C) Sales of fixed assets. D) Personal savings of the entrepreneur. Show Answer Correct Answer: B) Banking. 25. There are ..... main types of banks. A) 3. B) 4. C) 2. D) 5. Show Answer Correct Answer: A) 3. 26. Firms that wish to raise funds for investment purposes issue securities in the A) Primary and secondary markets. B) Primary markets. C) Secondary markets. D) Intermediary markets. Show Answer Correct Answer: B) Primary markets. 27. Company having high fixed operating cost would opt for ..... A) Debt. B) Equity. C) Both Debt & Equity. D) None of the above. Show Answer Correct Answer: B) Equity. 28. What is the primary responsibility of a financial manager in an organization? A) To organize company parties. B) To manage the organization's financial resources. C) To hire and fire employees. D) To design the company's logo. Show Answer Correct Answer: A) To organize company parties. 29. What does the A in SMART stand for? A) Attainable. B) Action-Packed. C) Accountable. D) Articulate. Show Answer Correct Answer: A) Attainable. 30. When you make a mistake you should A) Attempt to hide the mistake. B) Blame others. C) Accept fault and seek to remediate the error. D) Ignore it and move on. E) Apologize but continue acting the same way. Show Answer Correct Answer: C) Accept fault and seek to remediate the error. ← 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