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- 1. Multiple Choice
This decision is about the quantum of finance to be raised from various long-term sources.
Investment decision
Financing decision
Dividend decision
Capital budgeting decision
- 2. Multiple Choice
The inability of a business to meet its fixed financial obligations, like payment of interest, is known as
Business risk
Financial risk
Long-term risk
Market risk
- 3. Multiple Choice
The overall financial risk depends upon the
Proportion of debt in the total capital
Proportion of equity in the total capital
Both of the above
None of the above
- 4. Multiple Choice
This decision determines the overall cost of capital and the financial risk of the enterprise
Dividend decision
Capital budgeting decision
Investment decision
Financing decision
- 5. Multiple Choice
Which of the following sources of capital should not be selected by a business if its fixed cost is high?
Equity shares
Preference shares
Debentures
All of the above
- 6. Multiple Choice
When the stock market index is rising, a company may issue ___________ in order to meet its financial requirements.
Debentures
Bonds
Equity shares
None of the above
- 7. Multiple Choice
Name the financial decision which relates to disposal of profits.
Investment decision
Financing decision
Dividend decision
Capital budgeting decision
- 8. Multiple Choice
Under which of the following circumstances a company is NOT likely to declare a higher dividend?
When the earnings of the company are high
When a company has a lucrative forthcoming business opportunity(Growth opportunity )
When the cash flow position of the company is strong
None of the above
- 9. Multiple Choice
A company is likely to declare higher dividends if
Tax rates are high
Tax rates are relatively lower
Tax rate has no effect on dividend declaration
None of the above
- 10. Multiple Choice
It is essentially the preparation of a financial blueprint of an organisation’s future operations.
Identify the related concept.
Financial management
Financial planning
Capital budgeting decisions
Dividend decision
- 11. Multiple Choice
Financial management is mainly concerned with
All aspects of acquiring and utilizing financial resources for firms activities
Arrangement of funds
Efficient Management of every business
Profit maximisation
- 12. Multiple Choice
The primary goal of financial management is
to maximize the return
to minimize the risk
to maximize wealth of owners
to maximize profit
- 13. Multiple Choice
Capital budgeting related to
long term assets
short term assets
long term assets and short term assets
fixed assets
- 14. Multiple Choice
Dividend decision is concerned with
only distribution of dividend to shareholders
how much to be retained in business
how much profit earned is distributed to shareholders and how much to be retained in the business
none of the above
- 15. Multiple Choice
A decision to acquire a new and modern plant to upgrade an old one is a
financing decision
working capital decision
investment decision
none of the above
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