This quiz works best with JavaScript enabled. Home > Management > Financial Management > Financial Management – Quiz 40 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 40 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. How much more are short term stocks taxed compared to long term stocks A) 0-5%. B) 5-10%. C) 15-20%. D) 15-25%. E) 0.4. Show Answer Correct Answer: D) 15-25%. 2. Which of the following is not used to calculate insurance needed? A) Short-term needs. B) Long-Term Needs. C) Long-term wants. D) Maintenance expenses. E) Resources. Show Answer Correct Answer: C) Long-term wants. 3. You'll get Rs. 110 after one year if you invest Rs. 100 at 10% interest rate. A) True. B) False. Show Answer Correct Answer: A) True. 4. Short term investment decisions affect the A) Purchase of fixed assets. B) Long term profitabiliy. C) Day to day working of business. D) Large amount of funds for future. Show Answer Correct Answer: C) Day to day working of business. 5. What is the first step in the budgeting process? A) Prepare a list of each type of income and expense that will part of the budget. B) Calculate each type of income, expense, and the amount of net income or loss. C) Explain the budget to people who need to make financial decisions. D) Gather accurate financial information. Show Answer Correct Answer: A) Prepare a list of each type of income and expense that will part of the budget. 6. One of the reasons why companies are required to maximize value compared to company profits is? A) Maximizing long-term oriented profits. B) Maximizing profits considers risk factors. C) Maximizing value, not paying attention to social responsibility. D) Maximizing company value considers risk factors. Show Answer Correct Answer: D) Maximizing company value considers risk factors. 7. . When a company uses increased fixed cost for production, this is an example of what type of leverage A) Operating leverage. B) Financial leverage. C) Variable cost leverage. D) Combined leverage. Show Answer Correct Answer: A) Operating leverage. 8. Financing Decision comes under A) Financial decision. B) Investment Decision. C) Dividend decision. D) Working capital decision. Show Answer Correct Answer: A) Financial decision. 9. How much is Puan Soffia's monthly saving if she wanted to pay the down payment (10%) for a RM650, 000 house in five years? How much monthly savings should Puan Soffia save if she wants to pay a down payment (10%) for a house worth RM 650, 000 within 5 years? A) RM1111.78. B) RM1083.33. C) RM900.00. D) RM902.78. Show Answer Correct Answer: B) RM1083.33. 10. Cash flows are discounted for various reasons, but NOT because of A) Time. B) Inflation. C) Interest rate. D) Risk and uncertainty. Show Answer Correct Answer: D) Risk and uncertainty. 11. Who is the player in foreign exchange market? A) Commercial banks. B) Retailers. C) Wholesalers. D) Workers. Show Answer Correct Answer: A) Commercial banks. 12. Mainly general type of Direct Foreign Investment (DFI) is A) Franchising. B) Patent. C) International trade. D) Establishment of new subsidiaries. Show Answer Correct Answer: D) Establishment of new subsidiaries. 13. It is a kind of bank with the motive of profit earning, and for this purpose, it performs the functions of accepting the deposits of the public and lends them the loan. A) Thrift Bank. B) Rural Bank. C) Commercial Bank. D) Universal Bank. Show Answer Correct Answer: C) Commercial Bank. 14. The concept that value of a rupee to be received in future is less than the value Of a rupee on hand today is known as A) A. Recovery factor concept. B) B time value of money. C) C. Compounding fator concept. D) D. None of these. Show Answer Correct Answer: B) B time value of money. 15. An investment is lucrative when: A) The equity IRR is higher than NPV to equity capital providers. B) The NPV is higher than cost of investment. C) The equity IRR is higher than cost of equity. D) The NPV to equity capital providers is higher than cost of equity. Show Answer Correct Answer: C) The equity IRR is higher than cost of equity. 16. Which of the following refers to corporation A) Tax paid by individual owners. B) Decision making will be done by the board of directors. C) More than one person enter the business. D) Unlimited liability. Show Answer Correct Answer: B) Decision making will be done by the board of directors. 17. Anything of value that is owned or controlled A) Property. B) Equity. C) Owner's equity. D) Capital. Show Answer Correct Answer: A) Property. 18. Which of the following is an external source of finance A) Retained earnings. B) Equity shares. C) Preference shares. D) Debentures. Show Answer Correct Answer: D) Debentures. 19. The following are investment approaches, except: A) Conservative. B) Proactive. C) Moderate. D) Aggressive. Show Answer Correct Answer: B) Proactive. 20. One of the goals of company owners and managers in studying financial management is? A) Make decisions that can increase company profits. B) Make decisions that can streamline the organization. C) Make decisions that can expand the company's market share. D) Make decisions with the aim of maximizing company value. Show Answer Correct Answer: D) Make decisions with the aim of maximizing company value. ← 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