Financial Management Unit1 - 2 Mark Quiz Questions

1.Any project which generads ______ crates wealth a. Preventive net present value b. Positive net present value c. Possible net present value d. Possessive net present value 2.Controller performs a. RMS b. None c. IMS d. MIS 3.Dividend payments make a shareholder a. Sorrow b. None c. Loyal d. Happy 4.Dividend yield is an important determinant for. a. Retail prices b. Stock prices c. Local prices d. Wholesale prices

5.Dividends are not payable to. a. Equity shareholders b. Debentureholders c. Outside creditors d. Both B and C 6.Financial implications are the result of. a. Concerete decision b. Corporate decision c. Composite decision d. Corporation decision 7.Financial management should focus on.

a. All b. Effective deployment c. Procurement of funds d. Funds on least cost 8.In financing decisions the risk is known as risk of. a. Solvency b. Insolvent c. Insolvency d. Solvent 9.Invesment decisions are. a. Erratic b. Elastic c. Classic d. Magic

10.One of the Treasurer's function is a. Managing office b. None c. Obtaining finance d. Managing men 11.Performance is evaluvated in term of. a. Liabilty b. Profitability c. Credibility d. Viability 12.Profit maximization is based on. a. Efficiency b. Accuracy c. Deficiency d. Dependency 13.Study of financial management calls for the knowledge on a. Manipulating money b. Misusing money c. Mopping up money d. managing money 14.Today the finance management approach is____ in nature a. Technical b. Analytical c. Diabetical d. None

15.Under perfect competition, allocation of resources shall be based on the goal of a. Wealth maximization b. Growth maximization c. Profit maximization d. Cost maximization 16.Wealth maximization considers a. Cash value of money b. Goods value of money c. Time value of money d. None 17.Wealth maximization is based on

a. Cash flow b. Goods flow c. Traffic flow d. Profit flow 18.____ is the indication of shareholders wealth maximization a. None b. Normal value c. Local value d. Market value 19.______ is the cardinal rule of financial management a. Value Prounciation b. Value minimization c. Value initiation d. Value maximization

20______consider time value of money a. Cash maximization b. Profit maximization c. Wealth maximization d. None 21.________is based on cash flows a. Welfare maximization b. Warefare maximization c. Wish maximization d. Wealth maximization

Unit2 - 2 Mark Quiz Questions
1.A financial plan is a. Value addition b. Value diminuation c. Value creation d. Value accumulation 2.Captalization theories are a. Cost b. Earning c. None d. Both A and B 3.Composition of long term funds is a. Optimization b. Organisation c. None d. Capitalization

3.Corporate objectives could be grouped into a. Qualitative vs quatitative b. None c. Qualitative and quantitative d. Quantitative vs quantitive 4.Debt, equity refers to a. Sources of funds divided b. Sources of funds grouped c. None d. Sources of funds eliminated 5.Finance manager should concentrate on: a. Long and short term sales b. Long and short term plan c. None d. Long and short term document 6.Financial plan indicates. a. Quantum and composition of funds b. Competition of funds c. None d. Composition of funds 7.Financial plan shall case for a. Detailed cash requirments b. Detailed funds requirments c. None d. Detailed growth requirments

8.Forecast of funds can be obtained from___________Source a. External b. Internal c. Both A and B d. None 9.Grouping of fixed and working capital refers to a. Cash requirment b. None c. Captial requirment d. Staff requirment 10.Raw material cost 40% of sales . Now raw materials cost increasing 10% but selling price increases by 5% cost of raw materials will be. a. 44/100 b. 44/105 c. 40/105 d. None 11.Seasonal peak requirements to be met from _________borrowings a. Long term b. None c. Mid term d. Short term

12.Short term and long term objectives are needed for to operate in _________environment a. None b. Dynamic c. Dynasty d. Dynamite 13.Through financial planning________ of asset is enhanced

a. Productivity b. Capacity c. Normality d. Selectivity 14.Value creation results in a. Book marking b. None c. Bench marking d. Land marking 15.What total capital is more than ture value it is

a. Over Captilazed b. Over absortbed c. None d. Over ublised 16.When actual capitalization is lower than capitalization, it is a. Under - quoted b. Under - written c. Under - capitalized d. Under - valued

Unit3 - 2 Mark Quiz Questions
1.A rupee received today has ________value a. Less b. None c. More d. Constant 2.During inflation, a rupee has a higher____________power a. Hoarding b. None c. Purchasing d. Selling 3.Even cash inflows refers to. a. Uniformity b. Rationality c. Duality d. Reality 4.Future value is a _________work a. Bad b. Guess c. Raw d. None 5.In zero time period _______taken place a. Redemption b. None c. Investment d. Recovery

6.In zero time period, cash flows a. None b. Out c. Netrualiser d. In 7.Normally, value of many ________ over a period a. Constant b. Changes c. Charges d. None 8.Payout of Rs. 5000 annually in 10 years is known as. a. Calamities b. Annuities c. Perpetuities d. None 9.Productive emplyment of money genarate________returns a. Row b. Rubbish c. Real d. Reel 10.Sinking fund is created for a _________ purpose

a. 2. Specific b. Social c. General d. Personal

11.Time value has an influence on________opportunity a. Personal b. Personnel c. Dividend d. Investment 12.Under compounding method convertion is a. Future to present b. present to present c. Future to future d. Present to future 13.Under discounting method is convertion is a. Future to present b. Future to future c. Present to future d. Present to present 14.Under discounting technique, determination of ________ of a future amount takes place a. Current value b. Past value c. Present value d. Excess value 15.Uneven cash flows is not equal to: a. Entire cash flow b. Enhanced cash flow c. Even cash flow d. Enlarged cash flow

16.Zero time period refers to ________investment period a. Perinneal b. Potential c. Positive d. Initial 17.___________-takes place at ZTP a. Cash overflows b. Cash inflows c. None d. Cash outflows

Unit4 - 2 Mark Quiz Questions
1.Annual payments to shareholders are known as

a. Dividend b. Profit c. Interest d. None 2.Bond - Yield methods are applicable to a. Equity shares b. Perference shares c. Bonds d. Assets

3.Book value concept is a. Acquisition minus amortized value b. Depreciated value c. Amortized value d. Monetary value 4.Discount rate is the ________ expectation from securities a. None b. Employer c. Invester d. Inspector 5.If the coupon rate is Rs. 80 and market price is Rs. 920, the current yield is

a. 8.7% b. d .7.5% c. 7.8% d. 9.2% 6.In case of loss made by company , dividends are paid out of________ a. capital b. Assets c. None d. Reserves 7.In India perpetual bonds are popular a. Not sure b. False c. None d. True

8.In liquidation , intangiable assets are:

a. Exclended b. None c. Included d. Seculended 9.In perpetual bonds, _________ value is known

a. Face b. Base c. None d. Phase 10.On purchase of a share , stream dividends is for : a. Present b. None c. Past d. Future 11.Price earning ratio refers to payment for ________ rupee earnings

a. Each b. None c. Constant d. Total 12.The book value approach to equity valuation is the _________ of the company a. Public worth b. Intrinsic worth c. Net worth d. Personal worth

13.Under constant growth , dividends tend to a. Constant b. Increase c. Decrease d. Erode 14.Under multi-period valuation model, the formula is

a. Dn / (O l + ke )n b. Dn'n c. None d. (l + ke )n 15.Under semi-annual system, interest payable is _________than annual interest payments

a. More b. None c. Constant d. Less 16.Under variable growth model, dividends a. Dove hit b. Dove tail c. None d. Tail of dove 17.Valuaion of bonds and shares link the risk and return to establish_________ a. Company worth b. Asset worth c. National worth d. Natural worth

18.Value is concerned with a. Future inflows b. Fast inflows c. Fake inflows d. Further inflows

19.The motive of shareholder for holding share is due to_________ Answer:

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