This quiz works best with JavaScript enabled. Home > Management > Financial Management > Financial Management – Quiz 111 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 111 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. 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) Evaluating financial status. B) Setting financial goals. C) Carrying out financial plan. D) Creating a financial plan. Show Answer Correct Answer: B) Setting financial goals. 2. 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. 3. The balance sheet statement is correct, if: A) Assets + Liabilities = Stockholder's Equity. B) Assets = Liabilities-Stockholder's Equity. C) Assets = Liabilities + Stockholder's Equity. D) Liabilities = Assets + Stockholder's Equity. Show Answer Correct Answer: C) Assets = Liabilities + Stockholder's Equity. 4. Financial blueprints are determined by A) Financial Planning. B) Financial Leverage. C) Financial Decision. D) Capital Structure. Show Answer Correct Answer: A) Financial Planning. 5. What is required for carrying out business activites? A) Cash. B) Debt. C) Equity Shares. D) Money. Show Answer Correct Answer: D) Money. 6. 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. 7. 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. 8. 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. 9. Property is anything of value that is owned or controlled. A) True. B) False. Show Answer Correct Answer: A) True. 10. 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. 11. A wise investment strategy helps in..... A) Build short-term wealth. B) Prepare a financial budget. C) Supports the achievement of financial goals. D) Identify financial problems. Show Answer Correct Answer: C) Supports the achievement of financial goals. 12. 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. 13. 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. 14. 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. 15. 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. 16. In capital asset pricing model, characteristics line is classified as A) Profitability line. B) Regression line. C) Weighted line. D) Scattered point. Show Answer Correct Answer: B) Regression line. 17. Which from the below is not the principles underlying sound investments. A) Reasonable rate of return. B) Recognition of effect of world conditions. C) Tax efficiency. D) Collateral of specific units. Show Answer Correct Answer: D) Collateral of specific units. 18. What is the main disadvantage of a partnership? A) Limited liability. B) Difficulty of transferring ownership. C) Unlimited life. D) Ease of raising capital. Show Answer Correct Answer: B) Difficulty of transferring ownership. 19. A company has calculated the NPV of a new project as follows:Present value($ '000)Sales revenue 4, 000Variable costs (2, 000)Fixed costs (500)Corporation tax at 20% (300)Initial outlay (1, 000)NPV 200What is the sensitivity of the project decision to a change in sales volume? A) 12.5%. B) 6.3%. C) 10.0%. D) 5.0%. Show Answer Correct Answer: A) 12.5%. 20. Which of the following can lead to increased expected cash flow over time to the firm? A) Open and collaborative relations with the community. B) Qualified and motivated employees. C) Greater customer satisfaction. D) All of the above. Show Answer Correct Answer: D) All of the above. ← PreviousNext →Related QuizzesManagement QuizzesFinancial Management Quiz 1Financial Management Quiz 2Financial Management Quiz 3Financial Management Quiz 4Financial Management Quiz 5Financial Management Quiz 6Financial Management Quiz 7Financial Management Quiz 8Financial Management Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books