FM-ASSIGNMENT (MCQ)

SUBMITTED BY- SUBMITTED TO-

MD JEESHAN Ms. BUSHRA MAM
PGDM 2 B
ABS/PGDM/19/081
 MCQ-Basics of Financial Management

1. The only feasible purpose of financial management is

a) Wealth Maximization
b) Sales Maximization
c) Profit Maximization
d) Assets maximization

ANS : a) Wealth Maximization

2. Financial management process deals with

a) Investments
b) Financing decisions
c) Both a and b
d) None of the above

ANS : b) Financing decisions

3. Agency cost consists of

a) Binding
b) Monitoring
c) Opportunity and structure cost
d) All of the above
ANS : 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
ANS : 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

ANS : d) All of the above

6. Financial management mainly focuses on

a) Efficient management of every business
b) Brand dimension
c) Arrangement of funds
d) All elements of acquiring and using means of financial resources for
financial activities

ANS : d) All elements of acquiring and using means of financial resources

for financial activities

7. Investment is the

a) net additions made to the nation’s capital stocks

b) person’s commitment to buy a flat or house
c) employment of funds on assets to earn returns
d) employment of funds on goods and services that are used in production
process

ANS : c) employment of funds on assets to earn returns

8. Financial Management is mainly concerned with

a) All aspects of acquiring and utilizing financial resources for firms activities
b) Arrangement of funds
c) Efficient Management of every business
d) Profit maximization

ANS :a) All aspects of acquiring and utilizing financial resources for firms
activities

9. The primary goal of the financial management is

a) to maximize the return

b) to minimize the risk
c) to maximize the wealth of owners
d) to maximize profit

ANS : c) to maximize the wealth of owners

10. In his traditional role the finance manager is responsible for

a) proper utilisation of funds

b) arrangement of financial resources
c) acquiring capital assets of the organization
d) efficient management of capital

ANS: b) arrangement of financial resources