MCQ On Finance Management

5 Questions | Total Attempts: 461

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Management Quizzes & Trivia

Questions and Answers
  • 1. 
    The only feasible purpose of financial management is
    • A. 

      Wealth Maximization

    • B. 

      Sales Maximization

    • C. 

      Profit Maximization

    • D. 

      Assets maximization

  • 2. 
    Financial management process deals with 
    • A. 

      Investments

    • B. 

      Financing decisions

    • C. 

      Both a and b

    • D. 

      None of the above

  • 3. 
    Agency cost consists of
    • A. 

      Binding

    • B. 

      Monitoring

    • C. 

      Opportunity and structure cost

    • D. 

      All of the above

  • 4. 
    Finance Function comprises
    • A. 

      Safe custody of funds only

    • B. 

      Expenditure of funds only

    • C. 

      Procurement of finance only

    • D. 

      Procurement & effective use of funds

  • 5. 
    The objective of wealth maximization takes into account
    • A. 

      Amount of returns expected

    • B. 

      Timing of anticipated returns

    • C. 

      Risk associated with uncertainty of returns

    • D. 

      All of the above