202 Financial Management | MBA MCQs | SPPU | FM

Multiple Choice Questions (MCQ) with Answers on Financial Management (FM)

          Financial management, is that branch of general management, which has grown to provide specialized and efficient financial services to the whole enterprise; involving, in particular, the timely supplies of requisite finances and ensuring their most effective utilization-contributing to the most effective and efficient attainment of the common objectives of the enterprise. Financial management is one of the important aspects in finance. Nobody can ever think to start a business or a company without financial knowledge and management strategies. Finance links itself directly to several functional departments like marketing, production and personnel.  Here we will list out some of the major scope of financial management notes which will help you in your decision making process. 

CHAPTER 1 – Business Finance:

Introduction of Business Finance: Meaning, Definition of Financial Management, Goals of Financial Management (Profit Maximization and Wealth Maximization), Modern approaches to Financial Management – (Investment Decision, Financing Decision and Dividend Policy Decisions) Finance and other related disciplines, Functions of finance manager, Key strategies of financial management, Financial Planning – Principles and Steps in Financial Planning

Financial Management MCQs | Chapter 1 | Part 1

Financial Management MCQs | Chapter 1 | Part 2

Financial Management MCQs | Chapter 1 | Part 3

Financial Management MCQs | Chapter 1 | Part 4

Financial Management MCQs | Chapter 1 | Part 5

CHAPTER 2 - Capital structure:

Meaning, Factors affecting the capital structure, Different Sources of Finance and its Types, Concept and measurement of cost of capital, measurement of specific costs WACC, Trading on equity and its types.

Financial Management MCQs | Chapter 2 | Part 1

Financial Management MCQs | Chapter 2 | Part 2

Financial Management MCQs | Chapter 2 | Part 3

Financial Management MCQs | Chapter 2 | Part 4

Financial Management MCQs | Chapter 2 | Part 5

CHAPTER 3 - Techniques of Financial Analysis:

Meaning , Nature, Objectives, Understanding of financial statements, Schedule VI of Companies Act, Tools of analysis, interpretation and limitations of financial analysis, Fund flow statement (Working capital basis), Understanding Cash flow statement – Difference between Cash flow and Fund flow statement, Ratio analysis (computation and interpretations of ratios)

Financial Management MCQs | Chapter 3 | Part 1

Financial Management MCQs | Chapter 3 | Part 2

Financial Management MCQs | Chapter 3 | Part 3

Financial Management MCQs | Chapter 3 | Part 4

Financial Management MCQs | Chapter 3 | Part 5

CHAPTER 4 – Capital Budgeting:

Meaning, Definition and types of evaluating the project on the basis of Traditional Techniques and Modern Techniques (viz. Payback period, Discounted Payback period, NPV, ARR, IRR, PI) Time Value of Money.

Financial Management MCQs | Chapter 4 | Part 1

Financial Management MCQs | Chapter 4 | Part 2

Financial Management MCQs | Chapter 4 | Part 3

Financial Management MCQs | Chapter 4 | Part 4

Financial Management MCQs | Chapter 4 | Part 5

CHAPTER 5 – Working Capital Management:

Nature and Scope, Components of working capital, operating cycle, types of working capital, Sources of Working Capital Financing, Factors affecting working capital, estimation of working capital requirement.

Financial Management MCQs | Chapter 5 | Part 1

Financial Management MCQs | Chapter 5 | Part 2

Financial Management MCQs | Chapter 5 | Part 3

Financial Management MCQs | Chapter 5 | Part 4

Financial Management MCQs | Chapter 5 | Part 5