Financial Management | Chapter 4 | Part 1 | MBA MCQs | FM

Finacial Management MCQs

  

 

1. While evaluating capital investment proposal the time value of money is considered in case of ____________.
   1.   Pay back method
   2.   Internal rate.
   3.   Discounted cash flow.
   4.   Accounting rate
2. The return after the pay off period is not considered in case of ____________.
   1.   Pay back period method .
   2.   Interest rate method.
   3.   Present value method
   4.   Discounted cash flow method
3. Depreciation is include in costs in case of ____________.
   1.   Discounted cash flow
   2.   Pay back method.
   3.   Accounting rate
   4.   Present value method.
4. The arbitrary process is the behavioral foundation for the ____________.
   1.   MM approach
   2.   XX approach.
   3.   Gorder approach.
   4.   Miller approach
5. The notice to Accept right share should not be less than ____________. days
   1.   15
   2.   10
   3.   20
   4.   30
6. The residual reserve after the proposal capitalization% of the increased paid up capital of the company ____________.
   1.   50%.
   2.   20%
   3.   40%
   4.   60% .
7. The bonus issue is permitted to be made out of ____________ and premium collected in cash
   1.   free reserves.
   2.   free interest
   3.   free bonus.
   4.   free cash dividend.
8. Premium received in cash is a source of ____________ issue .
   1.   Right.
   2.   Bonus.
   3.   Cash.
   4.   Résumés
9. Bonus share are not permitted unless the ____________paid shares ,if any made fully paid
   1.   partly.
   2.   semi.
   3.   fully.
   4.   not.
10. Dividend policy of a firm affects both the long time financing and____________. wealth
    1.   Owners .
    2.   Shareholders
    3.   Debtor
    4.   Creditors.
11. ___________is the distribution of the profits of a company among its shareholders
    1.   Shares.
    2.   Interest.
    3.   Dividend.
    4.   Commission
12. Which of the following is not an objective of financial management?
    1.   Maximization of wealth of shareholders
    2.   Mobilization of funds at an acceptable cost..
    3.   Ensuring discipline in the organization..
    4.   Maximization of profits
13. Which of the following is not a function of a finance manager?
    1.   Mobilization of funds
    2.   Manipulate share price of the company
    3.   Deployment of funds
    4.   Control over use of funds
14. The market value of the firm is the result of ____________.
    1.   dividend decisions
    2.   capital budgeting decisions
    3.   trade-off between cost and risk.
    4.   working capital decisions.
15. Which of the following statements represents the financing decision of a company?
    1.   Procuring new machineries for the R&D activities
    2.   Spending heavily for the advertisement of the product of the company
    3.   Adopting state of the art technology to reduce the cost of production.
    4.   Purchasing a new building at Delhi to open a regional office
16. Which of the following is a function of the finance manager
    1.   Mobilizing funds
    2.   Risk returns trade off.
    3.   Control over the uses of funds
    4.   Deployment of funds.
17. Which of the following are feature(s) of Gilt-edged securities?
    1.   Only repayment of principal is secured
    2.   The repayments of both principal and interest are secured.
    3.   They are issued by government entities.
    4.   They are issued by non-governmental service organizations.
18. Financial risk arises due to the ____________.
    1.   variability of returns due to fluctuations in the securities market
    2.   liquidity of the assets of the company
    3.   leverage used by the company
    4.   changes in prevailing interest rates in the market.
19. Which of the following is not a function performed by a financial system?
    1.   Savings function
    2.   Social function.
    3.   Risk function
    4.   Liquidity function
20. The risk that arises due to change in the purchasing power is called __________Business risk
    1.   Financial risk
    2.   Business risk
    3.   Interest rate risk.
    4.   Inflation risk.