This quiz works best with JavaScript enabled. Home > Finance > Management > Financial Management > Financial Management – Quiz 34 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 34 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. John wants to buy a $ 5, 000 car. He plans to buy it in 3 years. How much should he save each month to pay for the car? A) $ 1, 666.67. B) $ 138.89. C) $ 208.33. D) None of above. Show Answer Correct Answer: B) $ 138.89. 2. What do you call the max you can borrow? A) Quality Limit. B) Lending Limit. C) Equity Limit. D) Service Limit. E) Credit limit. Show Answer Correct Answer: C) Equity Limit. 3. Features of international business that a organization may be exposed to A) Exchange rates. B) Political risks. C) Foreign economic condition. D) All of the above. Show Answer Correct Answer: D) All of the above. 4. These are given to managers based on their effectiveness in achieving company goals A) Performance Shares. B) Economic Value Added. C) Ordinary Shares. D) Preference Shares. Show Answer Correct Answer: A) Performance Shares. 5. Increase in accounts payable A) Operating Activities. B) Investing Activities. C) Financing Activities. D) None of above. Show Answer Correct Answer: A) Operating Activities. 6. What is not included in the definition of Income Tax Subject below is: A) BUT (Permanent Establishment). B) Pet. C) A lot. D) Private Person. Show Answer Correct Answer: B) Pet. 7. The sale of "new" securities, where the financial asset is being traded for the very first time, is said to take place in the ..... market. A) Primary. B) Money. C) Secondary. D) Capital. Show Answer Correct Answer: A) Primary. 8. What is a personal line of credit A) A blank credit card. B) Money that you can't access. C) Money in your bank account. D) A consumer loan. E) Money available on a need basis. Show Answer Correct Answer: E) Money available on a need basis. 9. What institution has authority to increase/reduce interest rate? A) Commercial banks. B) Central bank. C) Savings and loan associations. D) Credit unions. Show Answer Correct Answer: B) Central bank. 10. Financial leverage refers to the portion of debt in the overall capital. A) False. B) True. Show Answer Correct Answer: B) True. 11. Use of fixed interest bearing source of funds to enhance the return of equity shareholders is called ..... A) Trading on asset. B) Trading on liability. C) Trading on profit. D) Trading on equity. Show Answer Correct Answer: D) Trading on equity. 12. Financial Management is study-(I) Of the process of procuring and judicious use of financial resources(II) Undertaken to maximize the value of the firm/owners.Select the correct answer from the options given below. A) (I) only. B) (II) only. C) Both (I) and (II). D) Neither (I) nor (II). Show Answer Correct Answer: C) Both (I) and (II). 13. When interest rates are high, a company with a high capital gearing ratio may experience: A) Increased risk. B) Difficulty in meeting interest payments. C) Decreased profitability. D) Increased profitability. Show Answer Correct Answer: B) Difficulty in meeting interest payments. 14. When are the student labs held? A) Friday. B) Thursday. C) Tuesday. D) Monday. E) Wednesday. Show Answer Correct Answer: B) Thursday. 15. Cash at bank is an example of A) Current asset. B) Less of current asset more of current liability. C) Current liability. D) More of current asset less of current liability. Show Answer Correct Answer: A) Current asset. 16. Financial management function that managing the funds earned from active spending is called ..... A) Planning function of funds. B) Obtaining of funds. C) Allocation of funds. D) Earned of funds. Show Answer Correct Answer: C) Allocation of funds. 17. Which business financial planning concept is correct? A) Manage budgeting for the boss's interests. B) Manage bank loans for personal needs. C) Manage the flow of receivables collection wisely. D) Manage budgeting for each business needs item. E) Manage debt loan budgeting. Show Answer Correct Answer: D) Manage budgeting for each business needs item. 18. A fee paid by a borrower to the lender for the use of borrowed money; typically interest is calculated as a percentage of the principal (original loan amount) A) Loan. B) Interest. C) Debt. D) Credit. Show Answer Correct Answer: B) Interest. 19. The main objective of financial management is A) (a)Profit Maximisation. B) B) Wealth Maximisation. C) C) Ensuring availability of finance. D) (d) None of the above. Show Answer Correct Answer: B) B) Wealth Maximisation. 20. The power of time helps people earn more money. A) False. B) True. Show Answer Correct Answer: B) True. 21. Karen makes $ 1, 000 a month working at Bojangles. She pays $ 450 in rent. How much money does she have per month after paying her rent? A) $ 500. B) $ 450. C) $ 550. D) None of above. Show Answer Correct Answer: C) $ 550. 22. A firm's financing costs include A) Depreciation expense. B) Interest expense. C) Costs of goods sold. D) Both A and B. Show Answer Correct Answer: B) Interest expense. 23. Internal Rate of Return (IRR) to equity capital providers is equal: A) The cost of equity. B) The hurdle rate of return to equity capital providers. C) The total discounted free cash flows to equity capital providers. D) The actual return on equity capital. Show Answer Correct Answer: D) The actual return on equity capital. 24. If managers are making decisions to maximize shareholder wealth, then they are primarily concerned with making decisions that should A) Positively affect profits. B) Increase the market value of the firm's common stock. C) Either increase or have no effect on the value of the firm's common stock. D) Accomplish all of the above. Show Answer Correct Answer: B) Increase the market value of the firm's common stock. 25. Also called as "tangible" or "real" assetmarkets; these are for products such as wheat, autos, real estate, computers, and machinery. A) Futures Markets. B) Financial Asset Markets. C) Physical Asset Market. D) Spot Markets. Show Answer Correct Answer: C) Physical Asset Market. 26. Bob works a long day of 14 hours, he makes $ 12.50 per hour-what is his gross pay for that day? (remember 8 hours is a day) A) $ 212.50. B) $ 112.50. C) $ 185.50. D) $ 200.00. Show Answer Correct Answer: A) $ 212.50. 27. Which is a source of earned income? A) Interest on your money market account. B) Volunteering at your school. C) Money earned while working at the mall. D) Collecting gift cards from birthdays. Show Answer Correct Answer: C) Money earned while working at the mall. 28. Factors that make time value of money possible are A) Time, Interest, Investments. B) Time, Money, Security. C) Time, Money, Investments. D) Time, Money, Interest. Show Answer Correct Answer: D) Time, Money, Interest. 29. Financial Ratios are..... measure. A) Relative. B) Absolute. Show Answer Correct Answer: A) Relative. 30. I want to make my money grow so I can pay for university. A) Spending. B) Saving. C) Investing. D) Donating. Show Answer Correct Answer: C) Investing. ← 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