MCQ Questions on Financial Management

MCQ Questions on Financial Management: Below, You will find a list of Commerce MCQ Questions as per the latest prescribed syllabus. Ace up your preparation with the Objective Questions available on Financial Management and enhance your subject knowledge. Understand the concept clearly by consistently practicing the Multiple Choice Questions and score well in your exams.

MCQ Questions on Financial Management

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

Answer: (b)


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

Answer: (b)


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

Answer: (b)


4. GST is a consumption of goods and service tax based on.
(a) Development
(b) Dividend
(c) Destiny
(d) Duration
(e) Destination

Answer

Answer: (e)


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

Answer: (c)


6. The market value of a share is responsible for.
(a) The investment market
(b) The government
(c) Shareholders
(d) The respective companies

Answer

Answer: (a)


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

Answer: (c)


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

Answer: (a)


9. What does financial leverage measured?
(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

Answer: (c)


10. From the below-mentioned items which are financial assets?
(a) Machines
(b) Bonds
(c) Stocks
(d) B and C

Answer

Answer: (b)


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