29/09/2023, 22:35 1st Module Assessment

Dashboard / My courses / Financial Management (FIBA601)-Semester II / #Module I: Introduction / 1st Module Assessment

Question 1

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What is risk-return analysis in financial management?

a. Assessing the potential risks and rewards of an investment

b. Analyzing the historical performance of a company's stock
c. Evaluating the impact of inflation on investment returns
d. Determining the optimal debt-equity ratio for a firm
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Question 2

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The changing role of finance managers includes a shift towards:

a. More operational tasks

b. Less reliance on technology
c. Strategic decision-making
d. Outsourcing financial functions
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Question 3

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Return on investment is a measure of:

a. The profitability of a project or investment

b. The time required to recover the initial investment
c. The risk associated with an investment
d. The present value of future cash flows
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29/09/2023, 22:35 1st Module Assessment

Question 4

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The financial environment includes:

a. Economic conditions and regulations

b. Social media trends and customer behavior
c. Marketing strategies and advertising campaigns
d. Political ideologies and cultural norms
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Question 5

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Which of the following is NOT a capital structure theory?

a. Net income approach

b. Net operating income approach
c. Traditional approach
d. Weighted average cost of capital (WACC) approach
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Question 6

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Which of the following is NOT an objective of a firm?

a. Profit maximization
b. Wealth maximization
c. Revenue maximization
d. Market share maximization
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29/09/2023, 22:35 1st Module Assessment

Question 7

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Which of the following best defines financial management?

a. Managing personal finances

b. Managing a company's money
c. Managing financial markets
d. Managing investment portfolios
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Question 8

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Which of the following is an example of a financial instrument?

a. Car
b. Patent
c. Treasury bill
d. Computer software
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Question 9

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What is the primary role of finance managers in an organization?

a. Maximizing shareholder wealth

b. Minimizing costs
c. Maximizing revenue
d. Minimizing risks
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29/09/2023, 22:35 1st Module Assessment

Question 10

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In financial management, risk refers to:

a. Uncertainty and potential loss

b. The amount of debt a company has
c. The rate of return on an investment
d. The value of assets owned by a company
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Question 11

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Which of the following is NOT a component of risk-return analysis?

a. Assessing the potential risks of an investment

b. Evaluating the potential returns of an investment
c. Calculating the average market return
d. Analyzing the historical performance of similar investments
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Question 12

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What is the relationship between risk and return in financial management?

a. Higher risk is always associated with higher return

b. Lower risk is always associated with higher return
c. Risk and return are not related in financial management
d. Risk and return are inversely related in financial management
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29/09/2023, 22:35 1st Module Assessment

Question 13

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How does the time value of money affect financial decision-making?

a. It emphasizes the importance of immediate consumption

b. It highlights the potential for future returns on investment
c. It reduces the significance of inflation in financial calculations
d. It discourages long-term financial planning
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Question 14

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What is the primary goal of financial management?

a. Maximizing profits
b. Minimizing costs
c. Maximizing shareholder wealth
d. Achieving market dominance
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Question 15

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The time in which a sum of money will be double at 5% p.a C.I is

a. 10 years
b. 12 years
c. 14.2 years
d. 15.2 years
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29/09/2023, 22:35 1st Module Assessment

Question 16

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If P = 1,000, R = 5% p.a, n = 4; What is Amount and C.I. is

a. 1,215.50, 215.50
b. 1,125, 125
c. 2,115, 115
d. 2,215, 215
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Question 17

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The present value of annuity of INR. 5,000 per annum for 12 years at 4% p.a C.I. annually is

a. 46,000
b. 45,850
c. 15,000
d. 46925
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◄ Test Your Understanding_1.9_Numerical on Time Value of Money

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