This quiz works best with JavaScript enabled. Home > Management > Financial Management > Financial Management – Quiz 28 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 28 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Covers your business in the event you have to limit or shut down because of disaster or catastrophic event. The insurance compensates a business for financial losses. A) Business interruption insurance. B) Vehicle insurance. C) Product liability insurance. D) Home-based businesses. Show Answer Correct Answer: A) Business interruption insurance. 2. There exist a ..... relationship between the Bond Price and Interest rate A) Direct relationship. B) Positive relationship. C) Inverse Relationship. D) No. Show Answer Correct Answer: C) Inverse Relationship. 3. The pay that is earned before deductions is taken out an employee's pay is called: A) Gross Pay. B) Net Pay. C) Take Home Check. D) Overtime. Show Answer Correct Answer: A) Gross Pay. 4. Deciding how to spend your money before you actually spend it. A) Account. B) Balance. C) Budget. D) Cash. Show Answer Correct Answer: C) Budget. 5. Financial controller is responsible A) Cash management. B) Credit management. C) Securities management. D) None of these. Show Answer Correct Answer: D) None of these. 6. The following accounts are included in the Balance Sheet, except: A) Account Receivable. B) Inventories. C) Depreciation and Amortisation. D) Patent & Godwill. Show Answer Correct Answer: C) Depreciation and Amortisation. 7. The service industry is defined as "a series of interactions between participants, processes and physical elements" . A) True. B) False. Show Answer Correct Answer: A) True. 8. Trading on equity takes place when: A) ROI is less than rate of interest on debt. B) ROI is more than the rate of interest on debt. C) ROI is less than the ROE. D) ROI is more than the ROE. Show Answer Correct Answer: B) ROI is more than the rate of interest on debt. 9. With the help of the financial planning a situation of continuous ..... can be maintained. A) Minimum Capital. B) Liquidity. C) Maximum Capital. D) (b) and (c). Show Answer Correct Answer: B) Liquidity. 10. The finance field includes three main subcategories: ..... finance, ..... finance, and public (government) finance. A) Private, corporate. B) Personal, corporate. C) Individual, corporate. D) Family, corporate. Show Answer Correct Answer: B) Personal, corporate. 11. What is it called when you own a % of the employer contributions? A) Vested. B) Contribution match. C) Employee match. D) Roll over. E) 401k. Show Answer Correct Answer: A) Vested. 12. How can businesses typically finance their growth? A) Reducing product offerings. B) Downsizing the workforce. C) Borrowing capital. D) Cutting marketing expenses. Show Answer Correct Answer: C) Borrowing capital. 13. What is the goal of the firm according to shareholder's wealth maximization? A) Maximizing total earnings. B) Emphasizing short-term targets. C) Considering risk and uncertainty. D) Increasing the market value of common stock. Show Answer Correct Answer: A) Maximizing total earnings. 14. ..... is defined in financial terms as the chance that an outcome or investment's actual gains will differ from an expected outcome or return A) Annuity. B) Perpetuity. C) Risk. D) Return. Show Answer Correct Answer: C) Risk. 15. An asset that derives value from a contractual Claim is called as A) Fictitious asset. B) Financial asset. C) Tangible asset. D) Real asset. Show Answer Correct Answer: B) Financial asset. 16. Wealth Maximisation is directly linked with A) Factory Efficiency. B) Employee Turnover. C) Market Capitalisation. D) JIT. Show Answer Correct Answer: C) Market Capitalisation. 17. Primary objective of financial management is A) Availability of funds. B) Effective use of funds. C) Safety of funds. D) Maximizing shareholder's wealth. Show Answer Correct Answer: D) Maximizing shareholder's wealth. 18. It is considered to be the expansive goal of the firm. A) Valuation Approach. B) Maximization of Shareholder's Wealth. C) Social Responsibility. D) Ethical Behavior. Show Answer Correct Answer: B) Maximization of Shareholder's Wealth. 19. The movement of money from lender to borrower and back again is known as ..... A) The circle of life. B) Corporate finance. C) The cycle of money. D) Money laundering. Show Answer Correct Answer: C) The cycle of money. 20. Investment in current assets for longer duration is called fixed capital. A) True. B) False. Show Answer Correct Answer: B) False. ← 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