_question bank of financial management_ 2mark

8/14/2019 _Question Bank of Financial Management_ 2Mark

http://slidepdf.com/reader/full/question-bank-of-financial-management-2mark 1/16

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. RMSb. 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 pricesc. 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 financed. 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 moneyd. None

17.Wealth maximization is based on

a. Cash flow

b. Goods flow

c. Traffic flow

d. Profit flow18.____ 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


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 requirmentd. Staff requirment

10.Raw material cost 40% of sales . Now raw materials cost increasing 10% but sellingprice 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 isa. Under - quoted

b. Under - written

c. Under - capitalized

d. Under - valued




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. Netrualiserd. 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

placea. 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


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. Investerd. 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 populara. 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 companya. 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 interestpayments

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 inflowsd. Further inflows

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

Answer:

_question bank of financial management_ 2mark

Documents