The management activity dealing with the planning and control of the company's financial resources is known as financial management. So, in order to achieve an organization's ultimate aim (mostly to maximize the wealth of shareholders), it focuses on the acquisition, financing, and management of assets.
Today, financial management may be described as planning for the future of a corporation to assure a good cash flow, rather of only focusing on book profit. In certain circles, financial management is also known as the science of money management.
Definition of FM
Another way to describe it is that "Financial Management is the act of coordinating and managing the acquisition and utilization of an organization's financial resources." Among Phillippatus's many elaborative definitions is:
'Financial Management' is concerned with the company's short-term and long-term credit acquisition and financing decisions.'
Both the acquisition of cash and the efficient utilization of these assets to fulfill corporate goals are essential components of good financial management.
Scope of FM
- Calculation of the company's size and rate of progress
- The process of determining the company's asset composition.
- Consideration of debt to equity ratios, etc., in determining the financing mix of a business.
- Control, analysis, and planning of the company's financial issues.
Therefore, FM focuses on circumstances where specific assets (or combinations of assets) need to be selected, as well as the specific challenge of a company's expansion and growth. These decisions are analyzed based on the predicted inflows and outflows of capital and their impact on management objectives.
Following are some of the multiple choice questions on the Financial Management with answers that will help the students in developing their knowledge.
Financial Management MCQ
2. The primary goal of financial management is
3. Investment can be defined.
4. The objective of wealth maximization takes into account
5. What is a savings account?
6. Which does not belong to the group?
7. Market value of shares are decided by
8. Financial management is mainly concerned with
9. Why is it important to save money?
10. Where do you put your signature on a check you just wrote?
11. A ______________ is a set of documents that outline the essential financial facts about the new venture.
12. Which financial decision help a businessman in opening a new branch of its business.
13. Which of the following assets is not considered as current asset:
14. In a financial market, the price to borrow money is called the?
15. The ___________________ is a report of the revenue, expenses, and net income or net loss over an accounting period.
16. When a company is unable to meet its fixed financial charges it is called----------
17. Which one is source of raising of funds?
18. Which is not a major decision in Financial Management
19. What is the formula for Earnings per share (EPS)?
20. Where is the signature on a credit or debit card?
21. What is mobile banking?
22. What is a credit referring to a checking account?
24. Which of following does not a type of direct foreign investment?
25. Safe mode by which firms perform worldwide business is
26. Portfolio Investment is dealing in
27. Mainly general type of Direct Foreign Investment (DFI) is
28. How old can you be to open a savings or checking account?
29. IF THE SALES OF A FIRM IS RS 10,00,000 AND CONTRIBUTION IS RS 2,00,000 THEN VARIABLE COSTS ARE
30. Financial Planning helps in...
31. IF THE SALES ARE RS 50,00,000 AND VARIABLE COSTS ARE 30,00,000
32. CALCULATE THE FIXED EXPENSES IF CONTRIBUTION IS RS 15,00,000 AND EBIT IS RS 10,00,000
33. The shareholder's equity of a corporation has three basic components. Which does not belong to the group?
34. This is a legal business entity created by the government.
35. Cash flows are the money that is available to a business at any given time.
36. Owner's equity is the owner's claim to the asset of the business. It is NEVER referred to as the owner's capital in the business.
37. This considered as the oldest, most common, and simplest form of business organization.
38. The summary of the operating, investing and financing activities of the firm is presented in the?
39. Financial Managers are often task to trade the equity securities of the firm in the financial market. What particular activity is this?
40. Compute the EPS based on the given data below:Shares Outstanding - 100, 000Year-end Net income - 750,000
41. It is considered to be the expansive goal of the firm.
42. Pam needs to take money out of her account from an ATM what card will she use?
43. FINANCING DECISIONS RELATE TO THE
44. BANK OVERDRAFT IS A FORM OF
45. CAPITAL STRUCTURE DENOTES THE COMPOSITION OF
46. External sources of funds are
47. Portion of Profit distributed to the shareholder is
48. It consists of recognized gains and losses that are not included in the income statement but are found in the equity section
49. These are given to managers based on their effectiveness in achieving company goals
50. This statement presents the result of the firm's operation or performance for a given time
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