Financial Management Mc Chapters 1-9

101 Questions | Total Attempts: 345

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Financial Management Quizzes & Trivia

Questions and Answers
  • 1. 
    Which of the following organizations is not a business?
    • A. 

      A university hospital.

    • B. 

      A record store.

    • C. 

      A shipping company.

    • D. 

      A tax consultancy firm.

  • 2. 
    Which of the following activities is not concerned with efficiency?
    • A. 

      Modifying a product to tailor it to costumers wishes.

    • B. 

      Purchasing from a selected group of suppliers to achieve bigger discounts.

    • C. 

      Sending sales invoices more quickly.

    • D. 

      Modifying a product to shorten processing times.

  • 3. 
    Which of the following statements is correct?
    • A. 

      Extending discount to reliable costumers is a business tactic that can secure maximum profit.

    • B. 

      The supply of public-sector goods is regulated through the market mechanism.

    • C. 

      Non-profit organizations are economically independent, because they rely on contributions, donations, subsidies, legacies and so forth.

    • D. 

      Companies tend to find it more difficult to transfer to other activities than non-profit organizations.

  • 4. 
    Which of the following statements is incorrect?
    • A. 

      It is more difficult to measure the effectiveness of profit-based businesses than non-profit institutions.

    • B. 

      Non-profit organizations always strive to operate as efficiently as possible.

    • C. 

      Public-sector goods and services are provided by the government, because market mechanisms are not suitable for these goods and services.

    • D. 

      A negative financial result for a non-profit organization does not necessarily imply that the organization has performed poorly.

  • 5. 
    Which of the following types of information is not likely to be included in a mission statement?
    • A. 

      The expect profit for next year.

    • B. 

      The environment credentials of the business.

    • C. 

      The main product groups offered by the business.

    • D. 

      The groups of participants for which the business wants to improve the level of prosperity.

  • 6. 
    Which of the following statements is incorrect?
    • A. 

      Service business tend to have relatively low labour costs.

    • B. 

      A service business purchases hardly any raw materials.

    • C. 

      With the mass production products are usually manufactured for stock and not to order.

    • D. 

      The production process pf a trading company can be a conversion according to place.

  • 7. 
    The manufacturing of a car in a saloon and a cabriolet versions is called:
    • A. 

      Mass production.

    • B. 

      Batch Production.

    • C. 

      Job production.

  • 8. 
    Statement 1: The wholesale trade is ' B2B ' Statement 2: Wholesale trade is seasonal products is important for reducing the time between production and consumption.
    • A. 

      Both statements are correct.

    • B. 

      Both statements are incorrect

    • C. 

      Statement 1 is correct, statement 2 is incorrect.

    • D. 

      Statement 1 is incorrect, statement 2 is correct.

  • 9. 
    Which of the following businesses is not obliged to publish financial statements?
    • A. 

      Brown and son partnership.

    • B. 

      Johnston Ltd.

    • C. 

      Harvey PLC.

    • D. 

      Eastman LLC.

  • 10. 
    The Torville & Dean partnership has failed to repay a bank loan of 100.000 Torville has a 40% share, Dean a 60% share in the partnership. The bank is entitled to demand that torville pays:
    • A. 

      € 100,000,-

    • B. 

      € 40,000,-

    • C. 

      € 50,000,-

    • D. 

      Nothing.

  • 11. 
    A partnership has two general partners and one limited partner. General Partner A has invested 100.000 in the partnership, general partner B 50.000 and limited partner C 450.000. The partnership has a total debt of 1 Million. Partner A is liable for:
    • A. 

      € 1 Million.

    • B. 

      € 100,000,-

    • C. 

      € 500,000,-

    • D. 

      € 550,000,-

  • 12. 
    Which of the following statements is incorrect?
    • A. 

      A sole proprietorship is subject to corporate tax.

    • B. 

      Under the imputation system, corporate tax is treated as a prepayment of income tax levies on the shareholders.

    • C. 

      The 'company tax burden balance' aims at striking a balance between companies that are legal entities and those that are not.

    • D. 

      The partners in a partnership are subject to income tax.

  • 13. 
    XYZ Ltd records a profit of 400.000 and distributes half of its profit after taxation to shareholders. The rate of corporate tax is 20% and the rate of income tax is 45%. Under the classical system, the total amount in taxes paid is:
    • A. 

      € 152,000,-

    • B. 

      € 72,000,-

    • C. 

      € 224,000,-

    • D. 

      € 80,000,-

  • 14. 
    Which of the following statements is incorrect?
    • A. 

      A limited partner in a partnership is liable for the partnership's debts.

    • B. 

      LLCs and PLCs are both joint-stock companies.

    • C. 

      Shareholders are not liable for the repayment of a company's debts.

    • D. 

      Only public limited companies can have their shares traded at the stock exchange.

  • 15. 
    A Dutch wholesale trader purchases 1.000 radios at a unit price of 20 euros. Excluding 19% VAT. The trader sells 700 radios to Dutch retailers at selling price of 40 euros. The Dutch wholesale trader pays the Dutch tax authorities an amount of: 
    • A. 

      € 190,-

    • B. 

      € 2,470,-

    • C. 

      € 3,520,-

    • D. 

      € 4,210,-

  • 16. 
    An industry comprises:
    • A. 

      Competing businesses.

    • B. 

      Businesses operating at the same stage of the production process.

    • C. 

      Businesses operating at all stages of the production process of a single product.

    • D. 

      Businesses operating in the same market sector.

  • 17. 
    The owner of a do-it-yourself shop affiliates with a chain, thereby being allowed to call his shop hobby plus. The owner pays a fee on the basis of his turnover. This is:
    • A. 

      Franchising.

    • B. 

      A merger.

    • C. 

      A takeover.

    • D. 

      Cartelization.

  • 18. 
    When businesses enter into cartel agreement, their aim is:
    • A. 

      To have a stronger bargaining position with regard to the trade unions.

    • B. 

      To restrict competition.

    • C. 

      To buy out competitors.

    • D. 

      To start a new joint-stock company.

  • 19. 
    Cartelization will predominantly occur in a:
    • A. 

      Oligopoly.

    • B. 

      Monopoly.

    • C. 

      Competitive Market.

    • D. 

      All of the above mentioned.

  • 20. 
    Investments decisions are part of the discipline of: 
    • A. 

      Finance.

    • B. 

      Management accounting.

    • C. 

      Financial accounting.

    • D. 

      Bookkeeping.

  • 21. 
    In which of the following situations is investment caused automatically by the production process?
    • A. 

      Provision of trade credit on the sale of goods.

    • B. 

      Purchase of a new computer system.

    • C. 

      Lease of trucks.

    • D. 

      Sale of company premises.

  • 22. 
    Which of the following is not part of the discipline of management accounting?
    • A. 

      Cost calculations.

    • B. 

      Designing a budgeting system.

    • C. 

      Disclosure of financial figures.

    • D. 

      Make or buy decisions.

  • 23. 
    2.4 Which of the following is statements is correct?
    • A. 

      In financial accounting a company's management may resort to creative accounting.

    • B. 

      The legal form of a business is not important to financial accounting.

    • C. 

      Financial accounting is focused on the future.

    • D. 

      Financial accounting only has an accountability function.

  • 24. 
    Which statement is correct?
    • A. 

      Company law influences the discipline of finance.

    • B. 

      Organizational behavior influences the discipline of finance.

    • C. 

      Management accounting provides basic data for bookkeeping.

    • D. 

      Marketing is part of the discipline of management accounting.

  • 25. 
    Tax law mainly applies to:
    • A. 

      Financial accounting.

    • B. 

      Finance.

    • C. 

      Management accounting.

    • D. 

      Organizational behavior.

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