This quiz works best with JavaScript enabled. Home > Management > Financial Management > Financial Management – Quiz 52 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 52 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A fee paid by a borrower to the lender for the use of borrowed money; typically interest is calculated as a percentage of the principal (original loan amount) A) Interest. B) Credit. C) Debt. D) Loan. Show Answer Correct Answer: A) Interest. 2. The main objective of financial management is A) (a)Profit Maximisation. B) B) Wealth Maximisation. C) C) Ensuring availability of finance. D) (d) None of the above. Show Answer Correct Answer: B) B) Wealth Maximisation. 3. The power of time helps people earn more money. A) True. B) False. Show Answer Correct Answer: A) True. 4. Karen makes $ 1, 000 a month working at Bojangles. She pays $ 450 in rent. How much money does she have per month after paying her rent? A) $ 500. B) $ 450. C) $ 550. D) None of above. Show Answer Correct Answer: C) $ 550. 5. A firm's financing costs include A) Depreciation expense. B) Interest expense. C) Costs of goods sold. D) Both A and B. Show Answer Correct Answer: B) Interest expense. 6. Internal Rate of Return (IRR) to equity capital providers is equal: A) The hurdle rate of return to equity capital providers. B) The cost of equity. C) The actual return on equity capital. D) The total discounted free cash flows to equity capital providers. Show Answer Correct Answer: C) The actual return on equity capital. 7. If managers are making decisions to maximize shareholder wealth, then they are primarily concerned with making decisions that should A) Positively affect profits. B) Increase the market value of the firm's common stock. C) Either increase or have no effect on the value of the firm's common stock. D) Accomplish all of the above. Show Answer Correct Answer: B) Increase the market value of the firm's common stock. 8. Also called as "tangible" or "real" assetmarkets; these are for products such as wheat, autos, real estate, computers, and machinery. A) Physical Asset Market. B) Financial Asset Markets. C) Spot Markets. D) Futures Markets. Show Answer Correct Answer: A) Physical Asset Market. 9. Bob works a long day of 14 hours, he makes $ 12.50 per hour-what is his gross pay for that day? (remember 8 hours is a day) A) $ 212.50. B) $ 112.50. C) $ 200.00. D) $ 185.50. Show Answer Correct Answer: A) $ 212.50. 10. Which is a source of earned income? A) Interest on your money market account. B) Volunteering at your school. C) Money earned while working at the mall. D) Collecting gift cards from birthdays. Show Answer Correct Answer: C) Money earned while working at the mall. 11. Factors that make time value of money possible are A) Time, Money, Security. B) Time, Money, Investments. C) Time, Interest, Investments. D) Time, Money, Interest. Show Answer Correct Answer: D) Time, Money, Interest. 12. Financial Ratios are..... measure. A) Absolute. B) Relative. Show Answer Correct Answer: B) Relative. 13. I want to make my money grow so I can pay for university. A) Spending. B) Saving. C) Investing. D) Donating. Show Answer Correct Answer: C) Investing. 14. A share having no face value. A) Equity Shares. B) Preference Shares. C) No Par Share. D) Debenture shares. Show Answer Correct Answer: C) No Par Share. 15. Assets that are depleted in one run revolve in the production process and turnover process in a short time is called ..... A) Fixed assets. B) Current assets. C) Capital. D) Fixed capital. Show Answer Correct Answer: B) Current assets. 16. ..... is money given for a period of time but must be paid back with interest A) Debt. B) Loan. C) Income. D) Taxes. Show Answer Correct Answer: B) Loan. 17. Which of the following is one of the remedies of over capitalization? A) It can be compensated with the help of fresh issue of shares. B) Splitting up of shares. C) Issuing of bonus shares to the existing shareholders. D) Redemption of preference share capital. Show Answer Correct Answer: D) Redemption of preference share capital. 18. The process of calculating future value of cash flows is known as A) Discounting. B) Compounding. C) Both of these. D) None of these. Show Answer Correct Answer: B) Compounding. 19. Who is the teacher for Financial Management A) Prof.Dinter. B) Prof.Jason. C) Prof.Daniel. D) Prof.Nathan. E) Prof.Diego. Show Answer Correct Answer: A) Prof.Dinter. 20. Makayla bought a new outfit for $ 80.00. Calculate the sales tax at 6.75%. A) $ 5.40. B) $ 6.00. C) $ 4.50. D) $ 85.40. Show Answer Correct Answer: A) $ 5.40. ← 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