Practice Test

Q1) Planning is thinking Show Answer

Q2) Planning is a process of thinking in advance about Show Answer

Q3) Planning is a Show Answer

Q4) Strategies are Show Answer

Q5) Strategies are based on Show Answer

Q6) Strategies are Show Answer

Q7) Corporate strategies include Show Answer

Q8) Strategy ensures Show Answer

Q9) Cash management strategy is Show Answer

Q10) Process of carrying out a plan in skillful way is Show Answer

Q11) Plan to achieve a particular purpose is Show Answer

Q12) The features of strategic financial management include Show Answer

Q13) Strategic Financial Management takes into account Show Answer

Q14) Strategic Financial Management Employs Show Answer

Q15) Strategic Financial Management is Show Answer

Q16) Strategic Financial Management caters to the interest of Show Answer

Q17) Strategic Financial Management focuses on Show Answer

Q18) Strategic Financial Management includes Show Answer

Q19) Strategic Financial Management Covers Show Answer

Q20) Wealth maximization means Show Answer

Q21) Strategic Financial Management increases Show Answer

Q22) Strategic Financial management minimizes Show Answer

Q23) Different level of strategies are Show Answer

Q24) Allocation of resources is a Show Answer

Q25) Competition within the industry is driven by: Show Answer

Q26) Financial Strategy is a Show Answer

Q27) Production strategy is Show Answer

Q28) Finance is the Show Answer

Q29) Finance and economies are Show Answer

Q30) Relationship of finance with accounting Show Answer

Q31) All businesses need to have the following fundamental essential elements:
i)Strategy ii) Financial resources
iii)Management team
Show Answer

Q32) Objective of Financial Planning are:
i) Determining capital structure ii) Framing financial policies
iii) Determining capital requirements iv) Determining capital appreciation
Show Answer

Q33) To be financially sustainable , an organisation must:
i) Have only one source of income ii)Have more than one way of
generating income
iii)Do strategic, action and financial planning regularly
iv)Have adequate financial systems
Show Answer

Q34) Financial Manager would not supervise on the following areas:
i)Financial analyst ii)Personal financial advisors
iii)Financial accounts and auditing
Show Answer

Q35) Scope of financial strategy include the following :
i)Financing decisions ii)Investment decisions
ii)Dividend decisions iv) Portfolio decisions
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Q36) What makes an organisation financially sustainable?
i) Have more than one source of income
ii)Do strategic , action and financial planning regularly
iii)Have adequate financial systems
iv)Have a good public image
Show Answer

Q37) What makes an organisation sustainable?
i)Have an adequate administrative and financial infrastructure
ii)Have a clear strategic direction
iii)Be able to scan its environment or context to identify opportunities for its work
iv)Be able to attract, manage and retain competent staff
Show Answer

Q38) What makes an organisation sustainable?
i)Have an adequate administrative and financial infrastructure
ii)Have a clear strategic direction
iii)Be able to scan its environment or context to identify opportunities for its work
iv)Be able to attract, manage and retain competent staff
Show Answer

Q39) A Financial Manager would play the role of__ in areas of finance.
i)Financial analyst ii) Personal financial advisors
iii) Financial Examiners iv) Budget Analyst
Show Answer

Q40) The basic objective of Financial Management is: Show Answer

Q41) Finance is vital for which of the following business activity (activities)? Show Answer

Q42) Business Finance addresses which of the following? Show Answer

Q43) What is the most appropriate goal of the firm? Show Answer

Q44) ______ is concerned with the acquisition, financing, and management of assets with some overall goal in mind. Show Answer

Q45) Directions: In each of the following questions, there are two statements labeled as Assertion (A) and Reason (R).
Assertion (A): The goal of financial management is to maximize shareholder wealth.
Reason (R): Shareholders are the ultimate owners in every corporation.
Choose the correct alternative from the following:
Show Answer

Q46) Directions: In each of the following questions, there are two statements labeled as Assertion (A) and Reason (R).
Assertion (A): The stockholders of a corporation have limited liability.
Reasons(R): Shareholders are personally liable for the debts of the corporation Choose the correct alternative from the following:
Show Answer

Q47) Functional strategy is a _______ plan for achieving one or more goals of a business by one or more functional areas. Show Answer

Q48) ______ is the concept of increasing the value of a business in order to increase the value of the shares held by stockholders. Show Answer

Q49) Planning is thinking in advance. Show Answer

Q50) Capital investment is not a springboard for wealth creation. Show Answer

Q51) Under strategic financial management, capital is not the limiting factor Show Answer

Q52) The term “strategic” essentially refers to financial management that is focused on long-term success. Show Answer

Q53) Strategic financial management involves risk assessment and risk management. Show Answer

Q54) Key elements of strategic financial management does not include budgeting, risk management and review and evaluation. Show Answer

Q55) According to Agency Theory strategic financial management is the function of Financial decisions; Investment Decisions; Dividend decisions; Portfolio decisions. Show Answer

Q56) The 3 major components of Financial Planning are Financial Resources (FR), Financial Tools (FT) and Financial Goals (FG). Show Answer

Q57) Investment and fund allocation decisions are not integral part of Strategic Financial Management. Show Answer

Q58) Value creation is at the heart of corporate strategy. Show Answer

Q59) Profit maximizations is the main aim of any business. Show Answer

Q60) Profit maximization considers intangible benefits such as quality, image and technological advancements. Show Answer

Q61) Wealth or Value of a business is defined as the market price of the capital invested by shareholders Show Answer

Q62) Profits are the true measurement of the viability of business model Show Answer

Q63) Two main sources of wealth creation or value creations are the industry attractiveness and competitive advantage of the firm. Show Answer

Q64) Financial policies are guides of company. Show Answer

Q65) Planning is not exactly a strategy Show Answer

Q66) Strategy is one of the components of planning Show Answer

Q67) Planning is past oriented Show Answer

Q68) Strategy is a master game plan Show Answer

Q69) Strategies are based on theoretical knowledge Show Answer

Q70) Expansion is a corporate strategy Show Answer

Q71) Planning is roadmap for accomplishment of any task Show Answer

Q72) Strategy is related to action Show Answer

Q73) The duties of a Financial Manager are to determine which marketing strategy to use to promote a product. Show Answer

Q74) Capitalisation is generally found to be three types: Normal, Over and Under. Show Answer

Q75) Overcapitalization does not have any diverse effects. Show Answer

Q76) Market Value of Shares of an under-capitalized company rises. Show Answer

Q77) In an under-capitalized situation a firm can easily maintain large secret reserves. Show Answer

Q78) The basic limitation of the capital budgeting process lies in the fact that involves various estimations. Show Answer

Q79) The interest on debentures is a tax deductive expenditure. Show Answer

Q80) Gross Profit and Net profit both gives the same amount of profit Show Answer

Q81) The role of financial manager is to manage risk. Show Answer

Q82) Profit maximization is the goal of financial management Show Answer

Q83) EVA is a traditional parameter for measuring shareholders wealth. Show Answer

Q84) EVA is not mandatorily reported in Annual Reports in India Show Answer

Q85) The modern term EVA was called by Economists as “Residual Income”. Show Answer

Q86) Positive EVA builds up a discount to the market value of equity. Show Answer

Q87) EVA has revolutionized the way in which companies are evaluated in the modern times. Show Answer

Q88) Operations are usually defined as core revenue critical aspects of a business that are non-repeatable in nature Show Answer

Q89) Corporate strategy is hierarchically the highest strategic plan of the organization. Show Answer

Q90) Strategy is preventive Show Answer

Q91) Strategy is second in sequence Show Answer

Q92) Strategy is a fore thought of what is to be done. Show Answer

Q93) Strategy drives action Show Answer

Q94) Strategy ensures success to the organisation Show Answer

Q95) Strategy gives uniqueness to the organisation Show Answer

Q96) Collection is a financial strategy Show Answer

Q97) Strategic Financial management takes a short term view Show Answer

Q98) Strategic Financial management covers valuation of a firm Show Answer

Q99) Strategic Financial management increases ROI Show Answer

Q100) Strategic Financial management minimizes Risk Show Answer

Q101) Strategic Financial management minimizes profitability Show Answer

Q102) Allocation of resources is a corporate level strategy Show Answer

Q103) Production strategy is corporate level strategy Show Answer

Q104) Finance is life blood of business Show Answer

Q105) Economies and finance are dependent on each other Show Answer

Q106) There is no relation between accounting and finance Show Answer

Q107) Planning is thinking _______ action takes place. Show Answer