This quiz works best with JavaScript enabled. Home > Finance > Management > Financial Management > Financial Management – Quiz 73 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 73 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. ..... is concerned with the maximization of a firm's stock price. A) Stakeholder welfare maximization. B) Shareholder wealth maximization. C) EPS maximization. D) Profit maximization. Show Answer Correct Answer: B) Shareholder wealth maximization. 2. From the investors point of view the cost of capital is A) Yield of capital sacrifice. B) Market value. C) Interest rates. D) None of these. Show Answer Correct Answer: A) Yield of capital sacrifice. 3. The cost of capital plays a central role in FM because it provides link between ..... &financial decision of a firm?. A) Capital structure. B) Investment. C) Cash. D) None of these. Show Answer Correct Answer: B) Investment. 4. What does "IRS" stand for? A) Invoice Receipt Sale. B) Internal Revenue Service. C) Increase Rent Status. D) Instant Regulation Service. Show Answer Correct Answer: B) Internal Revenue Service. 5. ..... :a bank account that allows you to access the money in your bank account by writing checks. It's the account that you will use to pay your bills. A) Savings Account. B) Loan. C) Checking Account. D) Budget. Show Answer Correct Answer: C) Checking Account. 6. Sara earns $ 10.00 an hour. She worked 40 hours this pay period. Her gross pay was? A) $ 300 after taxes and deductions. B) $ 400.00. C) $ 275.00 after standard deductions. D) None of above. Show Answer Correct Answer: B) $ 400.00. 7. The amount of money subtracted or deducted from the gross pay earned in a pay period. A) Debit. B) Credit. C) Witholding Taxes. D) Deduction. Show Answer Correct Answer: D) Deduction. 8. Used to pay for long-term goals, such as retirement A) Investment. B) Savings. Show Answer Correct Answer: A) Investment. 9. SW Co has a barrel of chemicals in its warehouse that it purchased for a project a while ago at a cost of $ 1, 000. It would cost $ 400 for a professional disposal company to collect the barrel and dispose of it safely. However, the chemicals could be used in a potential project which is currently being assessed. What is the relevant cost of using the chemicals in a new project proposal? A) $ Nil. B) $ 1, 000 cost. C) $ 400 benefit. D) $ 400 cost. Show Answer Correct Answer: C) $ 400 benefit. 10. Is part of this strategy to sale of assets cut cost and operate the remaining assets more efficiently is engaging in ..... A) Shark repellent. B) Financial Acquisition. C) 2 tier tender offer. D) Strategic acquisition. Show Answer Correct Answer: D) Strategic acquisition. 11. Why is debt control considered an important step in financial management? A) Because debt is never a financial problem. B) Because debt can increase wealth. C) Because debt can be a financial burden. D) Because debt is always profitable. Show Answer Correct Answer: C) Because debt can be a financial burden. 12. Which goal is Specific? A) I'm going to be a better friend. B) I'm going to be successful. C) I'm going to do better in school. D) I am going to turn in all of my Math Homework. Show Answer Correct Answer: D) I am going to turn in all of my Math Homework. 13. The stocks that are owned by investors who are not active in management are called ..... ? A) Closely held stock. B) Classified stock. C) Common stock. D) Publicly held stock. Show Answer Correct Answer: D) Publicly held stock. 14. The following shows part of Mr Jason's financial management process. To save for emergency fundTo buy a laptopTo buy a terrace house in 10 years by paying RM60 000 as a down payment. What step in the financial management process did Mr Jason take? A) Carrying out financial plan. B) Setting financial goals. C) Creating a financial plan. D) Evaluating financial status. Show Answer Correct Answer: B) Setting financial goals. 15. The followings are the characteristics of common stock, except A) Voting rights. B) Preemptive right. C) Limited liability. D) Call feature. Show Answer Correct Answer: D) Call feature. 16. The balance sheet statement is correct, if: A) Assets + Liabilities = Stockholder's Equity. B) Assets = Liabilities-Stockholder's Equity. C) Liabilities = Assets + Stockholder's Equity. D) Assets = Liabilities + Stockholder's Equity. Show Answer Correct Answer: D) Assets = Liabilities + Stockholder's Equity. 17. Financial blueprints are determined by A) Financial Planning. B) Financial Decision. C) Financial Leverage. D) Capital Structure. Show Answer Correct Answer: A) Financial Planning. 18. What is required for carrying out business activites? A) Money. B) Cash. C) Debt. D) Equity Shares. Show Answer Correct Answer: A) Money. 19. If a firm requires to two crores for six months time to keep the stock of raw material, it should approach A) (a) Money market. B) (b) Capital market. C) C) Both (a) and (b). D) (d) None of the above. Show Answer Correct Answer: A) (a) Money market. 20. A company's is (are) potentially the most effective instrument of good corporate governance. A) Common stock shareholders. B) Board of directors. C) Top executive officers. D) None of above. Show Answer Correct Answer: B) Board of directors. 21. When you get a job, you will be required to complete a ..... form. This form is usually completed on your first day of work or at an employee training prior to starting work. A) W-4. B) W-2. C) 1040EZ. D) None of above. Show Answer Correct Answer: A) W-4. 22. Property is anything of value that is owned or controlled. A) True. B) False. Show Answer Correct Answer: A) True. 23. Is long-term vision and financial planning an important part of a financial manager's role? Why? A) No, because financial managers only focus on short-term financial goals. B) No, because financial planning is the responsibility of the accounting department. C) Yes, because it helps ensure the financial stability and growth of the organization. D) Yes, because finance managers are primarily responsible for forecasting sales and generating revenue. Show Answer Correct Answer: C) Yes, because it helps ensure the financial stability and growth of the organization. 24. A wise investment strategy helps in..... A) Identify financial problems. B) Supports the achievement of financial goals. C) Build short-term wealth. D) Prepare a financial budget. Show Answer Correct Answer: B) Supports the achievement of financial goals. 25. Why is financial management training important? A) It can help increase profits. B) It is a waste of resources. C) It can help enhance corporate and personal wealth. D) It can help reduce department costs. Show Answer Correct Answer: A) It can help increase profits. 26. What is the purpose of a company's capital structure decisions in financial strategy? A) To minimize taxes. B) To maximize short-term profits. C) To determine the allocation of resources. D) To find the optimal mix of debt and equity financing. Show Answer Correct Answer: D) To find the optimal mix of debt and equity financing. 27. Firms that offer a wide range of financial services, including investment banking, brokerage operations, insurance and commercial banking A) Commercial banks. B) Investment banks. C) Financial services corporation. D) None of above. Show Answer Correct Answer: C) Financial services corporation. 28. Two disadvantages of a proprietorship are (1) the relative difficulty of raising new capital and (2) the owner's unlimited personal liability for the business' debts. A) True. B) False. Show Answer Correct Answer: A) True. 29. In capital asset pricing model, characteristics line is classified as A) Scattered point. B) Weighted line. C) Regression line. D) Profitability line. Show Answer Correct Answer: C) Regression line. 30. Which from the below is not the principles underlying sound investments. A) Reasonable rate of return. B) Tax efficiency. C) Collateral of specific units. D) Recognition of effect of world conditions. Show Answer Correct Answer: C) Collateral of specific units. ← 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