Financial Management Multiple Choice Questions and Answers | Financial Management MCQ & QUIZ

Questions
1 Investment can be defined.
A Person’s dedication to purchasing a house or flat
B Use of capital on assets to receive returns
C Usage of money on a production process of products and services
D Net additions made to the nation’s capital stocks

Answer: Use of capital on assets to receive returns
2 The concept of Financial management is.
A Profit maximization
B All features of obtaining and using financial resources for company operations
C Organization of funds
D Effective Management of every company

Answer: All features of obtaining and using financial resources for company operations
3 What is the primary goal of financial management?
A To minimize the risk
B To maximize the return
C To maximize the owner’s wealth
D To raise profit

Answer: To maximize the return
4 GST is a consumption of goods and service tax based on.
A Development
B Dividend
C Duration
D Destination

Answer: Destination
5 The finance manager is accountable for.
A Earning capital assets of the company
B Effective management of a fund
C Arrangement of financial resources
D Proper utilization of funds

Answer: Arrangement of financial resources
6 The market value of a share is responsible for.
A The investment market
B The government
C Shareholders
D The respective companies

Answer: The investment market
7 The capital budget is associated with.
A Long terms and short terms assets
B Fixed assets
C Long terms assets
D Short term assets

Answer: Long terms assets
8 CAPM stands for.
A Capital asset pricing model.
B Capital amount printing model.
C Capital amount pricing model.
D Capital asset printing model.

Answer: Capital asset pricing model.
9 What does financial leverage measure?
A No change with EBIT and EPS
B The sensibility of EBIT with % change with respect to output
C The sensibility of EPS with % change in the EBIT level
D % variation in the level of production

Answer: The sensibility of EPS with % change in the EBIT level
10 From the below-mentioned items which are financial assets?
A Machines
B Bonds
C Stocks
D B and C

Answer: Bonds
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