Financial Management Test

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Financial Management Test - 24

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Weekly Quiz Competition

Question 1
1 / -0

Scope of financial management does not include ?

A
Financial decisions

B
Investment decisions

C
Dividend decisions

D
Note of the above
Solution
D) None of the above
Financial management includes :
Financial decisions
investment decisions
Dividend decisions.
Question 2
1 / -0

Which of the following is not a function of budgeting?

A
Planning

B
Motivating

C
Decision making

D
Controlling

Solution

Following are the functions of budgeting:-
1. Accountability
2. planning
3. Management
4. Control
5.Motivating
Question 3
1 / -0

What is the break-even point?

A
Cost received is more then revenue.

B
Cost received is less then revenue.

C
Gains are more then losses.

D
The point where there is no gain no loss.

Solution

In simple words, the break-even point can be defined as a point where total costs (expenses) and total sales (revenue) are equal. Break-even point can be described as a point where there is no net profit or loss. The firm just “breaks even.” Any company which wants to make normal profit, desires to achieve the break-even point. Graphically, it is the point where the total cost and the total revenue curves meet.
Question 4
1 / -0

When a company feels that it is not easy to survive, then it sells its unit or some of its part to survive. This is a kind of ____________ retrenchment.

A
liquidation

B
bankruptcy

C
turnaround

D
divestment

Solution

Divestment is a form of retrenchment strategy used by businesses when they downsize the scope of their business activities. Divestment usually involves eliminating a portion of a business. Firms may elect to sell, close, or spin-off a strategic business unit, major operating division, or product line.
Question 5
1 / -0

"Finance may be defined as that administrative area or set of administrative functions in an organization which relates with the arrangement of each and credit so that the organisation may have the means of carrying out its objectives as satisfactorily as possible."

A
B.O Wheeler

B
J.F. Brandley

C
Howard and Upton

D
William J. Stanton

Solution

According to Howard and Upton, “finance may be defined as that administrative area or set of administrative functions in an organization which relates with the arrangement of each and credit so that the organization may have the means to carry out the objectives as satisfactorily as possible".
Question 6
1 / -0

The key word that can be used to describe the basic economic problem that all societies face is:

A
Selfishness

B
Greed

C
Inequality

D
Scarcity

Solution

Scarcity refers to the basic economic problem, the gap between limited – that is, scarce – resources and theoretically limitless wants.
Scarcity, or limited resources, is one of the most basic economic problems we face. Scarcity arises where resources are limited and where the wants of society are unlimited. Hence it is required that the resources are efficiently allocated.
Question 7
1 / -0

The basic goal of financial management is ___________.

A
Maximising the profit

B
Maximising shareholders' wealth in the long run

C
Maximising the rate of dividend

D
Minimising the business risk.

Solution

A company's most important goal is to make money and keep it. Profit-margin ratios are one way to measure how much money a company squeezes from its total revenue or total sales.
Question 8
1 / -0

'Financial management is the activity concerned with planning, raising, controlling and administering of funds used in the business' are the words of ________.

A
J. F. Brandley

B
Guthmann and Dougall

C
Massi

D
Howard and Upton

Solution

According to the Guthmann and Dougall, “Business finance can broadly be defined as the activity concerned with planning, raising, controlling, administering of the funds used in the business”.
Question 9
1 / -0

"Business finance includes those business activities which are concerned with the acquisition and conservation of capital funds in meeting the financial needs and overall objectives of business enterprise." This definition is given by -

A
B.O. Wheeler

B
Howard and Upton

C
ICSI

D
ICAI

Solution

According to the Wheeler, “Business finance is that business activity which are concerned with the acquisition and conversation of capital funds in meeting financial needs and overall objectives of a business enterprise”.
Finance also is referred as the provision of money at the time when it is needed. Finance function is the procurement of funds and their effective utilization in business concerns.
Question 10
1 / -0

As per section 2(51) of the Companies Act, 2013, "Key Managerial Personnel", in relation to a company, means _______.
(i) Chief Executive officer or managing director or manager
(ii) Company Secretary
(iii) General Manager
(iv) Whole Time Director
(v) Chief Legal Officer
(vi) Chief Financial Officer
The correct answer is -

A
(i), (ii), (iv) & (vi)

B
(i), (iii), (iv), (v) & (vi)

C
(i), (ii), (v) & (vi)

D
(i), (iv), (v) & (vi)

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Re-Attempt Weekly Quiz Competition

Financial Management Test - 24

Result

Financial Management Test - 24

Score

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Rank

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SHARING IS CARING

Question 1

Financial decisions

Investment decisions

Dividend decisions

Note of the above

Solution

Question 2

Planning

Motivating

Decision making

Controlling

Solution

Question 3

Cost received is more then revenue.

Cost received is less then revenue.

Gains are more then losses.

The point where there is no gain no loss.

Solution

Question 4

liquidation

bankruptcy

turnaround

divestment

Solution

Question 5

B.O Wheeler

J.F. Brandley

Howard and Upton

William J. Stanton

Solution

Question 6

Selfishness

Greed

Inequality

Scarcity

Solution

Question 7

Maximising the profit

Maximising shareholders' wealth in the long run

Maximising the rate of dividend

Minimising the business risk.

Solution

Question 8

J. F. Brandley

Guthmann and Dougall

Massi

Howard and Upton

Solution

Question 9

B.O. Wheeler

Howard and Upton

ICSI

ICAI

Solution

Question 10

(i), (ii), (iv) & (vi)

(i), (iii), (iv), (v) & (vi)

(i), (ii), (v) & (vi)

(i), (iv), (v) & (vi)

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