This quiz works best with JavaScript enabled. Home > Management > Financial Management > Financial Management – Quiz 73 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 73 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which market directly contributes for capital formation and increase in capital of firms? A) (a) Primary market. B) (b) Secondary market. C) C) Both (a) and (b). D) (d) None of the above. Show Answer Correct Answer: A) (a) Primary market. 2. Which of the following is NOT an example of an equity market transaction? A) Mary sells her shares of Apple stock. B) Mark contacts his broker and requests a purchase of IBM bonds. C) Sahid buys shares of a small company stock traded on the NASDAQ. D) All of the above are equity market transactions. Show Answer Correct Answer: B) Mark contacts his broker and requests a purchase of IBM bonds. 3. Suppose you want to set up recurring payments for your mortgage that is due on the 15th of each month, which is the best method of payment? A) Cash (in person). B) Automatic Draft. C) Check. D) None of above. Show Answer Correct Answer: B) Automatic Draft. 4. Which of the following statements is/are correct?(1) Factoring with recourse provides insurance against bad debts(2) The expertise of a factor can increase the efficiency of trade receivables management for a company A) 2 only. B) 1 only. C) Neither 1 nor 2. D) 1 and 2. Show Answer Correct Answer: A) 2 only. 5. What type of class is financial management? A) A hard class. B) A pass/fail class. C) An easy A. D) A Q1 course. E) An AP class. Show Answer Correct Answer: D) A Q1 course. 6. What type of budget plans income and expenses from the beginning of a new business or a major business expansion until it becomes profitable? A) Direct. B) Balance. C) Start-up. D) Operating. Show Answer Correct Answer: C) Start-up. 7. The additional risk placed on the common stockholders as a result of the decision to finance with debt A) Financial risk. B) Systemic risk. C) Business risk. D) Asterisk. Show Answer Correct Answer: A) Financial risk. 8. Assest easily converted into cash A) Cash. B) Liquid Assets. C) Fixed Asset. D) Current Asset. Show Answer Correct Answer: B) Liquid Assets. 9. The main types of banks include ..... A) Commodity banks, Silver and Gold Associations, and Credit Onions. B) Cooperative banks, Salt and Pepper Associations, and Cranberry Onions. C) Commercial banks, Saving and Loan Associations and Credit Unions. D) Credit Unions, Community banks, and Mortgage Companies. Show Answer Correct Answer: C) Commercial banks, Saving and Loan Associations and Credit Unions. 10. Shareholders current wealth in a company is equal to ..... X ..... A) Face value of shares x Market price per share. B) No of shares x Market price per share. C) No of shares x Profit per share. D) No of shares x face value of shares. Show Answer Correct Answer: B) No of shares x Market price per share. 11. Merger and acquisition in unrelated industries are called A) Horizontal merger. B) Vertical mergers. C) Conglomerate merger. D) Privatisation. Show Answer Correct Answer: C) Conglomerate merger. 12. The insurance premium against fire and theft of inventories is regarded of following cost? A) Carrying cost. B) Ordering cost. C) Storage cost. D) All the above. Show Answer Correct Answer: C) Storage cost. 13. This type of share allows shareholders to convert current shares to equity shares. A) Cumulative preference share. B) Irredeemable preference Share. C) Non-cumulative preference share. D) Convertible preference share. Show Answer Correct Answer: D) Convertible preference share. 14. What is the main disadvantage of a corporation? A) Limited liability. B) Difficulty of transferring ownership. C) Unlimited life. D) Double taxation. Show Answer Correct Answer: D) Double taxation. 15. The acronym COGS stands for: A) Cost of goods sold. B) Creditors of Goods Tax. C) Capital outstanding GST. D) None of the above. Show Answer Correct Answer: A) Cost of goods sold. 16. When was Byju's founded? A) 2010. B) 2011. C) 2012. D) 2013. Show Answer Correct Answer: B) 2011. 17. Suppose you postpone consumption and invest at 9% when inflation is 3%. What is the approximate real rate of your reward for saving? A) 3%. B) 5%. C) 6%. D) 7%. Show Answer Correct Answer: C) 6%. 18. AW Co needs to have $ 100, 000 working capital in place immediately for the start of a 2-year project. The amount will stay constant in real terms. Inflation is running at 10% per annum, and AW Co's money cost of capital is 12%. What is the present value of the cash flows relating to working capital? A) $ (21, 260). B) $ (20, 300). C) $ (108, 730). D) $ (4, 090). Show Answer Correct Answer: A) $ (21, 260). 19. Which of the following statements best represents the "Agency Problem" ? A) Managers might attempt to benefit themselves in terms of salary and perquisites at the expense of shareholders. B) The agency problem results from the separation of management and the ownership of the firm. C) The agency problem may interfere with the implementation of maximizing shareholder wealth. D) All of the above. Show Answer Correct Answer: D) All of the above. 20. Bonds are bought and sold in ..... markets. A) Equity. B) Debt. C) Derivatives. D) Foreign exchange. Show Answer Correct Answer: B) Debt. ← 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