This quiz works best with JavaScript enabled. Home > Management > Financial Management > Financial Management – Quiz 53 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 53 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A manufacturer of LCD televisions has seen sales increase from 125, 000 units per year to 500, 000 units per year in 8 years. What has been the firm's average annual rate of increase in the number of television sets sold? Use the Rule of 72 to determine your answer. A) The average annual rate of change has been between 10% and 11%. B) The average annual rate of change has been between 18% and 19%. C) The average annual rate of change has been between 15% and 16%. D) There is not enough information to answer this question. Show Answer Correct Answer: B) The average annual rate of change has been between 18% and 19%. 2. Which of the following is not a factor affecting financing decision? A) Floatation Cost. B) Risk. C) Rate of return. D) Cash flow position. Show Answer Correct Answer: C) Rate of return. 3. The process of converting long term illiquid assets into financial instruments for raising money is called A) Securitisation. B) Bridge Finance. C) Venture Capital. D) Seed Capital. Show Answer Correct Answer: A) Securitisation. 4. The popular definition of hospitality is "the friendly and generous reception and entertainment of guests, visitors or strangers." A) True. B) False. Show Answer Correct Answer: A) True. 5. Marginal cost- A) Is the weighted average cost of new finance raised by the company. B) Is the additional cost of capital when the company goes for further raising of finance. C) Is the cost of raising an additional rupee of capital. D) All of the above. Show Answer Correct Answer: D) All of the above. 6. What topics are typically covered in financial management training? A) Strategic management methods. B) Personal financial planning. C) Data mining techniques. D) Market analysis and forecasting. Show Answer Correct Answer: B) Personal financial planning. 7. A ..... is a person who relies on another person, usually a family member, for financial support. A) Taxpayer. B) Dependent. C) Community. D) None of above. Show Answer Correct Answer: B) Dependent. 8. A fixed cash flow in each year for a specified number of years is called as A) Annuity. B) Recovery factor. C) Discounting. D) Compounding. Show Answer Correct Answer: A) Annuity. 9. There are two ways to correct for projects with unequal lives when using the NPV approach. Which of the answers below is one of these ways? A) One way is to find a common life, without the need to extend the projects to the least common multiple of their lives. B) One way is to find the present value factors and then compare them. C) One way is to compare the lengths of the projects and take the project with the shortest life. D) One way is to find a common life by extending the projects to the least common multiple of their lives. Show Answer Correct Answer: D) One way is to find a common life by extending the projects to the least common multiple of their lives. 10. What does the term 'liquidity' refer to? A) The amount of debt owed. B) The ability to pay off debt. C) The ability to access funds quickly. D) The ability to borrow money in the future. Show Answer Correct Answer: C) The ability to access funds quickly. 11. Mr. Spark spends RM2 500 for household expenses every month. How much is the minimum emergency fund needed by him based on Bank Negara Malaysia suggestion? (Hint:Emergency fund is the amount Mr. Spark should have to spend on household if he suddenly doesn't have any income) A) RM15 000. B) RM10 000. C) RM7 500. D) RM12 000. Show Answer Correct Answer: A) RM15 000. 12. Provides the foundation for financial security A) Investment. B) Savings. Show Answer Correct Answer: B) Savings. 13. What is an expense? A) A tax. B) A job. C) A payroll deduction. D) Something you use or buy. Show Answer Correct Answer: D) Something you use or buy. 14. Cost of retained earnings is equal to ..... A) Cost of equity. B) Cost of debt. C) Cost of bank loan. D) Cost of term loans. Show Answer Correct Answer: A) Cost of equity. 15. What is the type of income before you account for taxes? A) Deductable income. B) Gross Income. C) Net income. D) Taxable Income. E) Wageable Income. Show Answer Correct Answer: B) Gross Income. 16. To know the Future value of an Annuity, following table will be used A) CVAF. B) PVAF. C) PVF. D) CVF. Show Answer Correct Answer: A) CVAF. 17. With a financial perspective, one can say that a firm is a pool of ..... in order to ..... A) Personal wealth safe taxes. B) Resources invest. C) Contracts control employees. D) People make the world a better place. Show Answer Correct Answer: B) Resources invest. 18. Which of the following source of capital should not be selected by a business if its fixed cost is high? A) Equity shares. B) Preference shares. C) Debentures. D) None of above. Show Answer Correct Answer: C) Debentures. 19. What elements include the financial definition according to material? A) Financial management. B) All answers are correct. C) Financial planning. D) Risk management. Show Answer Correct Answer: B) All answers are correct. 20. What is one of the roles of fm in tax planning? A) Develop marketing campaigns to increase sales. B) Analyze customer behavior and preferences. C) Maximize deductions and credits to minimize tax liability. D) Manage the organization's investment portfolio. Show Answer Correct Answer: C) Maximize deductions and credits to minimize tax liability. ← 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