Financial Management
641. Financial management involves decisions about which of the following:
- Which projects to fund
- How to minimize taxation
- What type of capital should be raised
- All of these
Correct answer: (D)
All of these
642. The money markets deal with ______________.
- securities with a life of more than one year
- short-term securities
- securities such as common stock
- none of the above
Correct answer: (B)
short-term securities
643. If interest expenses for a firm rise, we know that the firm has taken on more ______________
- Financial Leverage
- Operating Leverage
- Fixed Assets
- None of the above
Correct answer: (A)
Financial Leverage
644. Insufficient working capital results in
- Block of cash
- Loosing interests
- Lack of production
- Lack of smooth flow of production
Correct answer: (D)
Lack of smooth flow of production
645. The investment in total current assets is known as
- Gross working capital
- Permanent working capital
- Temporary working capital
- Net working capital
Correct answer: (A)
Gross working capital
646. The time period required for the conversion of raw materials into finished goods
- Operating cycle period
- Inventory conversion period
- Receivable conversion period
- None
Correct answer: (B)
Inventory conversion period
647. Financial Management is mainly concerned with ______________.
- arrangement of funds
- all aspects of acquiring and utilizing financial resources for firm's activities
- efficient Management of every business
- profit maximization
Correct answer: (B)
all aspects of acquiring and utilizing financial resources for firm's activities
648. The gross working capital is a ______________ concern concept.
- Going
- money measurement
- revenue concept
- cost concept
Correct answer: (B)
money measurement
649. Which of the following is not a function performed by a financial system?
- Savings function
- Liquidity function
- Risk function
- Social function
Correct answer: (D)
Social function
650. The policy concerning quarters of profit to be distributed as dividend is termed as ______________.
- Profit policy
- Dividend policy
- Credit policy
- Reserving policy
Correct answer: (B)
Dividend policy