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