This quiz works best with JavaScript enabled. Home > Management > Financial Management > Financial Management – Quiz 4 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 4 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Leasing of machinery can be categorized as A) Fixed Asset. B) Financing decision. C) Investment decision. D) Capital Budgeting decision. Show Answer Correct Answer: B) Financing decision. 2. When Share prices are going up, it indicates A) Bear Phase. B) Stag Phase. C) Bull Phase. D) Correction the Market. Show Answer Correct Answer: C) Bull Phase. 3. Suppose that general motors has made an offer to acquire general Mills ignoring potential trust problems this mergers would be classified as a A) Monopolistic merger. B) Horizontal merger. C) Vertical merger. D) Conglomerate merger. Show Answer Correct Answer: D) Conglomerate merger. 4. The costs of operating a business A) Expenses. B) Budget. C) Inventory. D) Accounts. Show Answer Correct Answer: A) Expenses. 5. This is the money paid to the company's shareholders once profit earned A) Retained earning. B) CapEx. C) Interest. D) Dividend. Show Answer Correct Answer: D) Dividend. 6. What does the T in SMART stand for? A) Thorough. B) Testable. C) Timely. D) Terrific. Show Answer Correct Answer: C) Timely. 7. The size of assets, the profitability and competitiveness are affected by one of the financial decisions. Name the decision A) Working capital decision. B) Capital budgeting. C) Dividend decision. D) Financing decision. Show Answer Correct Answer: B) Capital budgeting. 8. ..... is money supplied by investors, banks, or owners of a business. A) Equity. B) Capital. C) Income statement. D) Property. Show Answer Correct Answer: B) Capital. 9. Original and additional investments of the owner. A) Drawings. B) Revenues. C) Expenses. D) Capital. Show Answer Correct Answer: D) Capital. 10. A firm starts its year with positive net working capital. During the year, the firm acquires more short-term debt than it does short-term assets. This means that: A) The ending net working capital must be negative. B) Accounts payable and inventory increased during the year. C) The ending net working capital can be positive, negative, or equal to zero. D) None of above. Show Answer Correct Answer: C) The ending net working capital can be positive, negative, or equal to zero. 11. Where do you put your signature on a check you just wrote? A) None of them. B) Bottom left corner on the line. C) Top right corner on the line. D) Bottom right corner on the line. Show Answer Correct Answer: D) Bottom right corner on the line. 12. How will you earn more money over time for your financial future? A) Simple interest. B) Compound interest. C) Simple yield. D) Compound yield. E) Asset allocation. Show Answer Correct Answer: A) Simple interest. 13. Name the concept which increases the return on equity shares with a change in the capital structure of a company. A) Capital structure. B) Capital budgeting. C) Trading on equity. D) Dividend decision. Show Answer Correct Answer: C) Trading on equity. 14. What is ignored in profit maximisation? A) Dividend. B) Time value. C) Risk. D) Earnings. Show Answer Correct Answer: B) Time value. 15. A government body uses measures based upon the 'three Es' to measure value for money generated by a publicly funded hospital. Which of the following relates to efficiency? A) Cost per successfully treated patient. B) Cost per operation. C) Proportion of patients readmitted after unsuccessful treatment. D) Percentage change in doctors' salaries compared with previous year. Show Answer Correct Answer: A) Cost per successfully treated patient. 16. ..... is the process of determining the present value of a payment or a stream of payments that is to be received in the future A) Discounting. B) Compounding. C) Annuity. D) Perpetuity. Show Answer Correct Answer: A) Discounting. 17. It includes overseeing the funding for building grounds, employee salaries, student programs, supplies, and technology. A) Human Resource Management. B) Production Management. C) Financial Management. D) None of above. Show Answer Correct Answer: C) Financial Management. 18. Financial ratio analysis that is often used in companies is: A) Liquidity ratio, leverage ratio, cash ratio. B) Activity ratio, liquidity ratio, profitability ratiio. C) Activity ratio, rentability ratio, turn over ratio. D) Turn over ratio, cash ratio, Debt of equity ratio. Show Answer Correct Answer: B) Activity ratio, liquidity ratio, profitability ratiio. 19. Financial Decisions involve: A) Investment, financing and dividend decision. B) Investment, financing and sales decision. C) Financing, dividend and cash decision. D) None of these. Show Answer Correct Answer: A) Investment, financing and dividend decision. 20. Commercial papers A) Short term debt. B) Long term debt. Show Answer Correct Answer: A) Short term debt. ← PreviousNext →Related QuizzesManagement QuizzesFinancial Management Quiz 1Financial Management Quiz 2Financial Management Quiz 3Financial Management Quiz 5Financial Management Quiz 6Financial Management Quiz 7Financial Management Quiz 8Financial Management Quiz 9Financial Management Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books