Our team has conducted extensive research to compile a set of Financial Management MCQs. We encourage you to test your Financial Management knowledge by answering these 70+ multiple-choice questions provided below.
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A. Arrangement of funds
B. All aspects of acquiring and utilizing financial resources for firm’s activities
C. Efficient management of every business
D. None of these.
A. Arrangement and efficient utilization of funds
B. Arrangement and efficient utilization of funds
C. Acquiring capital assets for the organization
D. None of these.
A. To record the financial history of the firm
B. To help predicting future
C. To solve managerial problems
D. None of these.
A. To maximize the return
B. To minimize the risk
C. To maximize the wealth of owners
D. None of these.
A. Long –term assets
B. Medium term assets
C. Short term assets
D. Short term assets
A. Long- term assets and liabilities
B. Short-term assets and liabilities
C. Only short-term assets
D. None of these.
A. The capital structure decision
B. Portfolio analysis decision
C. Investment statement policy
D. None of these
A. Capitalisation
B. Capital structure
C. Financial structure
D. None of these
A. Financial structure
B. Capital structure
C. Capital budgeting
D. None of these
A. Debt
B. Preference shares
C. Equity shares
D. Retained earnings.
A. The capital structure decision
B. Portfolio analysis decision
C. Investment statement policy
D. None of these.
A. Leverage rate
B. Hurdle rate
C. Risk rate
D. None of these.
A. The respective companies
B. The investment market
C. The government
D. None of these.
A. Cost of equity
B. Cost of debt
C. Cost of term-loans
D. None of these.
A. Capital Amount Pricing Model
B. Capital Asset Pricing Model
C. Capital Asset Printing Model
D. None of these.
A. The average cost of equity, shares and debentures
B. The average cost of equity, preference shares and debentures
C. The average cost of all sources of long-term funds
D. None of these
A. Lower than the owned funds
B. Equal to that of owned funds
C. Higher than that of owned funds
D. None of these.
A. Added profit
B. Tax shield
C. Additional financial burden
D. None of these
A. All investment to be made by the company with similar risk
B. All projects to be carried out in the future
C. Any assets to be bought by the company
D. None of these
A. Leave the market price of the stock unchanged
B. Increase the market price
C. Reduce the market price
D. None of these.
A. Net operating income
B. Net income
C. Both a & b
D. None of these
A. Net operating income
B. Net income
C. Both a & b
D. None of these
A. M and M approach
B. Net income approach
C. Net operating income approach
D. Traditional approach
A. Net income approach
B. Net operating income approach
C. Traditional approach
D. M and M approach
A. Durand
B. Solomon
C. Ezra
D. Modigliani and Millar
A. Net income approach
B. Net operating income approach
C. Both a and b
D. None of these
A. Net income approach
B. Net operating income approach
C. Both a and b
D. None of these
A. Net operating income approach
B. Net income approach
C. Traditional approach
D. None of these.
A. Traditional approach
B. M and M approach
C. Net income approach
D. None of these
A. Traditional approach
B. Net income approach
C. Net operating income approach
D. None of these
A. Dividend
B. Interest
C. Tax
D. None of these
A. Theory of irrelevance
B. Theory of relevance
C. Both a and b
D. None of these
A. Theory of irrelevance
B. Theory of relevance
C. Both a and b
D. None of these
A. Theory of irrelevance
B. Theory of relevance
C. Both a and b
D. None of these
A. Theory of irrelevance
B. Theory of relevance
C. Both a and b
D. None of these
A. Theory of irrelevance
B. Theory of relevance
C. Both a and b
D. None of these
A. Cost of capital or required rate of return (k)
B. Capital budgeting
C. Capital structure
D. None of these
A. Growth firm
B. Decline firm
C. None of these
A. Retain
B. Distribute
C. Both a & b
D. None of these
A. Payment of dividend to shareholders
B. Retain the dividend
C. Both a and b
D. None of these
A. Working capital b
B. Fixed assets
C. Current asset
D. Profit
A. Gross working capital
B. Net working capital
C. Fixed capital
D. None of these
A. Gross working capital
B. Net working capital
C. Fixed capital
D. None of these
A. Positive working capital
B. Negative working capital
C. Fixed working capital
D. None of these
A. Permanent working capital
B. Variable working capital
C. Net working capital
D. Gross working capital
A. Accounts receivable
B. Cash receivable
C. Inventory receivable
D. None of these
A. Transaction motive
B. Precautionary motive
C. Speculative motive
D. None of these
A. Customer receivables
B. owner receivables
C. Margin of safety
D. None of these
A. Working capital management
B. Assets management
C. Receivables management
D. None of these.
A. Cash management
B. Inventory management
C. Debtors management
D. Short-term financing