Teaching Business Studies Financial Management Question Bank

done MCQ - Financial Management Total Questions - 92

• question_answer1)
  Which one is not the objective of financial management?
  A)
   Wealth maximisation done clear
  B)
   Profit maximisation done clear
  C)
   Maintenance of liquidity done clear
  D)
   Shortage of funds done clear
  View Solution play_arrow

• question_answer2)
  Which source of finance leads to dilution of management’s control over the business?
  A)
   Retained earnings done clear
  B)
   Debenture done clear
  C)
   Preference share done clear
  D)
   Equity share capital done clear
  View Solution play_arrow

• question_answer3)
  Financing decisions are influenced by
  A)
   Cost of raising funds done clear
  B)
   Floatation cost done clear
  C)
   Both (a) and (b) done clear
  D)
   Neither (a) nor (b) done clear
  View Solution play_arrow

• question_answer4)
  Which decisions are taken by the financial manager?
  A)
   Investment Decisions done clear
  B)
   Financing Decisions done clear
  C)
   Dividend Decisions done clear
  D)
   All the above done clear
  View Solution play_arrow

• question_answer5)
  Net working capital refers to
  A)
   Current assets - Current liabilities done clear
  B)
   Current assets + Current liabilities done clear
  C)
   Current liabilities - Current assets done clear
  D)
   None of the above done clear
  View Solution play_arrow

• question_answer6)
  Financial management aims at
  A)
   Ensuring availability of enough funds done clear
  B)
   Reducing the cost of funds procured done clear
  C)
   Effective deployment of funds done clear
  D)
   All of the above done clear
  View Solution play_arrow

• question_answer7)
  A long-term investment decision is called a
  A)
   Capital budgeting decision done clear
  B)
   Working capital decision done clear
  C)
   Financial decision done clear
  D)
   Dividend decision done clear
  View Solution play_arrow

• question_answer8)
  Borrowing @ 10% and the rate @ 30% means the after tax cost of debt is
  A)
   20%                                         done clear
  B)
   7% done clear
  C)
   3%                                           done clear
  D)
   10% done clear
  View Solution play_arrow

• question_answer9)
  Decision regarding amount of finance to be raised from various sources is a
  A)
   Working capital                          done clear
  B)
   financing decision done clear
  C)
   Investment decision                    done clear
  D)
   Dividend decision done clear
  View Solution play_arrow

• question_answer10)
  Management of all matters related to an organisation's finance is called
  A)
   cash inflows and outflows done clear
  B)
   Allocation of resources done clear
  C)
   Financial management done clear
  D)
   Finance   done clear
  View Solution play_arrow

• question_answer11)
  Which of the following is not an element of financial management?
  A)
   Allocation of resources done clear
  B)
   Financial decision-making done clear
  C)
   Financial planning done clear
  D)
   Financial control done clear
  View Solution play_arrow

• question_answer12)
  The most important goal of financial management is
  A)
   Profit maximisation done clear
  B)
   Matching income and expenditure done clear
  C)
   Using business assets effectively done clear
  D)
   Health maximization done clear
  View Solution play_arrow

• question_answer13)
  Which of the following statements is not true?
  A)
   Financing decision is one of the important finance decisions done clear
  B)
   Financial management is useful only for big enterprises done clear
  C)
   Efficient management of every business is closely linked with efficient management of its finances done clear
  D)
   None of the above done clear
  View Solution play_arrow

• question_answer14)
  Early in the history of finances, an important issue was
  A)
   Liquidity                                   done clear
  B)
   capital structure done clear
  C)
   Technology                               done clear
  D)
   financing options done clear
  View Solution play_arrow

• question_answer15)
  Financial management is a _____ process.
  A)
   Dynamic                                               done clear
  B)
   rigid done clear
  C)
   Continuous                                           done clear
  D)
   discontinuous done clear
  View Solution play_arrow

• question_answer16)
  What is ignored in profit maximisation?
  A)
   Wealth                                                 done clear
  B)
   Net value done clear
  C)
   Time value of money done clear
  D)
   None of the above done clear
  View Solution play_arrow

• question_answer17)
  Raising more capital than required denotes situation of _____.
  A)
   Over-raising                               done clear
  B)
   excess of capital done clear
  C)
   Over liquidity                            done clear
  D)
   tangible done clear
  View Solution play_arrow

• question_answer18)
  Which of the following statements is/are incorrect?
  A)
   Capital budgeting is not the technique of capital structure analysis done clear
  B)
   The term 'capital structure' includes also the financial structure done clear
  C)
   Both  and done clear
  D)
   None of the above done clear
  View Solution play_arrow

• question_answer19)
  The policy concerning quantum of profits to be distributed as dividend is called
  A)
   Dividend policy                          done clear
  B)
   distribution policy done clear
  C)
   Share policy                              done clear
  D)
   sale policy done clear
  View Solution play_arrow

• question_answer20)
  How to achieve wealth maximisation?
  A)
   Avoid high level of risks done clear
  B)
   Reduction in cost done clear
  C)
   Pay dividends done clear
  D)
   All of the above done clear
  View Solution play_arrow

• question_answer21)
  Financial management is a part of
  A)
   Business management done clear
  B)
   Financial management done clear
  C)
   Management accounting done clear
  D)
   Structural management done clear
  View Solution play_arrow

• question_answer22)
  The financial management is responsible for the _____function of the concern.
  A)
   Finance                                    done clear
  B)
   marketing done clear
  C)
   Accounting                                done clear
  D)
   managerial done clear
  View Solution play_arrow

• question_answer23)
  The rate of dividend of preference shares is decided at the time of
  A)
   Issue                                                                done clear
  B)
   Dissolution of company done clear
  C)
   Payment done clear
  D)
   None of the above done clear
  View Solution play_arrow

• question_answer24)
  Investment decision include
  A)
   Expansion of existing business done clear
  B)
   Expansion of new business done clear
  C)
   Replacement done clear
  D)
   All of the above done clear
  View Solution play_arrow

• question_answer25)
  Dividend is the share of profit of company dividend amongst its
  A)
   Shareholders                             done clear
  B)
   brokers done clear
  C)
   Debenture holders                      done clear
  D)
   none of the above done clear
  View Solution play_arrow

• question_answer26)
  Stock dividend _____ the number of equity shares.
  A)
   Increases                                   done clear
  B)
   decreases done clear
  C)
   Neutralize                                  done clear
  D)
   Both  and done clear
  View Solution play_arrow

• question_answer27)
  Basic feature of an ideal financial plan is
  A)
   Simplicity                                 done clear
  B)
   rigidity done clear
  C)
   Flexibility                                  done clear
  D)
   foresight done clear
  View Solution play_arrow

• question_answer28)

  Direction: The following items consist of two statements, Statement I and Statement II. You are to examine these two statements carefully and select the answer to these items using the codes given below.

  Statement I Under capitalization leads to over capitalisation.

  Statement II 'Capital' and 'Capitalisation' are synonymous terms.

  Codes
  A)
   Both statements are correct done clear
  B)
   Both statements are incorrect done clear
  C)
   Statement I is correct, but Statement II is incorrect done clear
  D)
   Statement I is incorrect, but Statement II is correct done clear
  View Solution play_arrow

• question_answer29)

  Direction: The following items consist of two statements, Statement I and Statement II. You are to examine these two statements carefully and select the answer to these items using the codes given below.

  Statement I Financial planning is not an essential financial process.

  Statement II Financial planning may be short-term, medium-term or long-term.

  Codes
  A)
   Both statements are correct done clear
  B)
   Both statements are incorrect done clear
  C)
   Statement I is correct, but Statement II is incorrect done clear
  D)
   Statement I is incorrect, but Statement II is correct done clear
  View Solution play_arrow

• question_answer30)

  Direction: The following items consist of two statements, Statement I and Statement II. You are to examine these two statements carefully and select the answer to these items using the codes given below.

  Statement I A financial manager's concern must be to maintain liquidity rather than profitability.

  Statement II Main objective of financial management is maximisation of profits.

  Codes
  A)
   Both statements are correct done clear
  B)
   Both statements are incorrect done clear
  C)
   Statement I is correct, but Statement II is incorrect done clear
  D)
   Statement I is incorrect, but Statement II is correct done clear
  View Solution play_arrow

• question_answer31)

  Direction: The following items consist of two statements, Statement I and Statement II. You are to examine these two statements carefully and select the answer to these items using the codes given below.

  Statement I Traditional approach restricted the scope of financial management to arrange funds.

  Statement II Efficient management of every business is closely linked with efficient management of its finances.

  Codes
  A)
   Both statements are correct done clear
  B)
   Both statements are incorrect done clear
  C)
   Statement I is correct, but Statement II is incorrect done clear
  D)
   Statement I is incorrect, but Statement II is correct done clear
  View Solution play_arrow

• question_answer32)

  Direction: The following items consist of two statements, Statement I and Statement II. You are to examine these two statements carefully and select the answer to these items using the codes given below.

  Statement I The objective of finance function is wealth maximisation.

  Statement II The objective of finance function is profit maximisation.

  Codes
  A)
   Both statements are correct done clear
  B)
   Both statements are incorrect done clear
  C)
   Statement I is correct, but Statement II is incorrect done clear
  D)
   Statement I is incorrect, but Statement II is correct done clear
  View Solution play_arrow

• question_answer33)

  Direction: The following items consist of two statements, Statement I and Statement II. You are to examine these two statements carefully and select the answer to these items using the codes given below.

  Statement I Future financial requirement of the company influence dividend decision.

  Statement II During boom period, companies are usually in a race of increasing rate of dividend.

  Codes
  A)
   Both statements are correct done clear
  B)
   Both statements are incorrect done clear
  C)
   Statement I is correct, but Statement II is incorrect done clear
  D)
   Statement I is incorrect, but Statement II is correct done clear
  View Solution play_arrow

• question_answer34)

  Direction: The following items consist of two statements, Statement I and Statement II. You are to examine these two statements carefully and select the answer to these items using the codes given below.

  Statement I Dividends can be paid only when there are profits.

  Statement II Dividends can be paid when there are losses.

  Codes
  A)
   Both statements are correct done clear
  B)
   Both statements are incorrect done clear
  C)
   Statement I is correct, but Statement II is incorrect done clear
  D)
   Statement I is incorrect, but Statement II is correct done clear
  View Solution play_arrow

• question_answer35)

  Direction: The following items consist of two statements, Statement I and Statement II. You are to examine these two statements carefully and select the answer to these items using the codes given below.

  Statement I Overcapitalisation is desirable.

  Statement II Undercapitalisation is more desirable.

  Codes
  A)
   Both statements are correct done clear
  B)
   Both statements are incorrect done clear
  C)
   Statement I is correct, but Statement II is incorrect done clear
  D)
   Statement I is incorrect, but Statement II is correct done clear
  View Solution play_arrow

• question_answer36)
  Long-term finance is required for the purchases of _____assets.
  A)
   Fixed                                                    done clear
  B)
   tangible done clear
  C)
   Intangible                                              done clear
  D)
   variable done clear
  View Solution play_arrow

• question_answer37)
  Financial management is least concern for
  A)
   Financial forecasting done clear
  B)
   Allocation of funds done clear
  C)
   Establishing assets management done clear
  D)
   Gross profit ratio done clear
  View Solution play_arrow

• question_answer38)
  Which of the following is/are not a function of financial management?
  A)
   Planning for funds                      done clear
  B)
   Raising of funds done clear
  C)
   Allocation of funds                     done clear
  D)
   All of the above done clear
  View Solution play_arrow

• question_answer39)
  _____ refers to make up of a firm's capitalisation.
  A)
   Capital                                     done clear
  B)
   Capital structure done clear
  C)
   Funds                                                   done clear
  D)
   None of the above done clear
  View Solution play_arrow

• question_answer40)
  Retained earning is _____ a cost free source of capital.
  A)
   Not                                          done clear
  B)
   sometimes done clear
  C)
   Compulsorily                             done clear
  D)
   consistently done clear
  View Solution play_arrow

• question_answer41)
  Which of the following pairs is/are not correctly matched?
  A)

  Payment of dividend at the policy usual rate

  Regular dividend policy

  done clear
  B)

  Consistency or lack of variability in the stream of dividend payments

  No dividend policy

  done clear
  C)
   Both (a) and (b) done clear
  D)
   None of the above done clear
  View Solution play_arrow

• question_answer42)
  Which of the following statements is/are incorrect?
  A)
   Finance is required only at the time of promotion of business done clear
  B)
   Importance of finance cannot be over-emphasised done clear
  C)
   Both (a) and (b) done clear
  D)
   None of the above done clear
  View Solution play_arrow

• question_answer43)
  "Dividend policy determines the division of earnings between payments to shareholders and retained earnings". This statement was said by
  A)
   Weston                                     done clear
  B)
   Gitman done clear
  C)
   Brigham                                   done clear
  D)
   Both (a) and (b) done clear
  View Solution play_arrow

• question_answer44)
  The concept of cost of capital can also be explained in terms of _____.
  A)
   Opportunity cost                        done clear
  B)
   variable cost done clear
  C)
   Fixed cost                                 done clear
  D)
   capital cost done clear
  View Solution play_arrow

• question_answer45)
  Match the following

  List I		List II
  A.	Fixed capital	1.	___refers to make-up of a firm's capitalisation.
  B.	Normal rate of return	2.	___ is the cause of overcapitalisation
  C.	Liberal dividend policy	3.	Earnings per share \[\div \]Market price per share =___
  D.	Capital	4.	___is the funds required for an acquisition of assets.

  Codes
  A)
                                   A\[\to \]4, B\[\to \]3, C\[\to \]2, D\[\to \]1      done clear
  B)
   A\[\to \]2, B\[\to \]1, C\[\to \]3, D\[\to \]4 done clear
  C)
   A\[\to \]3, B\[\to \]1, C\[\to \]4, D\[\to \]2 done clear
  D)
   A\[\to \]2, B\[\to \]3, C\[\to \]4, D\[\to \]1 done clear
  View Solution play_arrow

• question_answer46)
  Which of the following limitations is/are limitation of profit maximisation objectives?
  A)
   Financial management ignores the value of money done clear
  B)
   Financial management overlooks quality aspect of profit from future activities done clear
  C)
   Ignores social responsibility of business done clear
  D)
   All of the above done clear
  View Solution play_arrow

• question_answer47)
  Cost of capital from all the sources of funds is called
  A)
   Specific cost                              done clear
  B)
   composite cost done clear
  C)
   Implicit cost                              done clear
  D)
   simple average cost done clear
  View Solution play_arrow

• question_answer48)
  Which of the following statements is incorrect?
  A)
   Purchase of fixed assets is a day-to-day expense done clear
  B)
   Business finance means money and credit employed in business firms done clear
  C)
   Without adequate finance, business may run into difficulties done clear
  D)
   None of the above done clear
  View Solution play_arrow

• question_answer49)
  Which of the following pairs is/are not correctly matched?
  A)

  Shares

  Short-term finance

  done clear
  B)

  Land and building

  Source of medium term finance

  done clear
  C)
   Both (a) and (b) done clear
  D)
   All of the above done clear
  View Solution play_arrow

• question_answer50)
  Which one of the following pairs is correctly matched?
  A)

  Interest is a   deductible expense

  Cost of debt capital

  done clear
  B)

  Realised-yield approach

  Cost of equity capital

  done clear
  C)

  Extended-yield approach

  Retained earnings

  done clear
  D)

  Dividend capitalisation

  Cost of preference share capital

  done clear
  View Solution play_arrow

• question_answer51)
  Match the following

  List I (Concepts)		List II (Advantages)
  A.	Profit maximisation	1.	Added flexibility
  B.	Under capitalisation	2.	Impact on society through factor payments
  C.	Over capitalisation	3.	Maximisation of profitability of the firm
  D.	Financial management	4.	Higher rate of dividend

  Codes
  A)
                                   A\[\to \]4, B\[\to \]1, C\[\to \]2, D\[\to \]3    done clear
  B)
   A\[\to \]2, B\[\to \]4, C\[\to \]1, D\[\to \]3 done clear
  C)
   A\[\to \]3, B\[\to \]2, C\[\to \]1, D\[\to \]4 done clear
  D)
   A\[\to \]1, B\[\to \]2, C\[\to \]3, D\[\to \]4   done clear
  View Solution play_arrow

• question_answer52)
  Which of the following statements is/are incorrect?
  A)
   Cost of capital means the rate of interest at which the capital has been collected done clear
  B)
   Payback is one of the methods of evaluating investment proposals done clear
  C)
   Both (a) and (b) done clear
  D)
   None of the above done clear
  View Solution play_arrow

• question_answer53)
  Which is not the technique of capital structure analysis?
  A)
   Trading on equity                       done clear
  B)
   Capital gearing done clear
  C)
   Capital budgeting                       done clear
  D)
   Cost of capital done clear
  View Solution play_arrow

• question_answer54)
  Which of the following is/are included under causes of under capitalisation?
  A)
   Under estimation of income done clear
  B)
   Promotion during deflation done clear
  C)
   Conservative dividend policy done clear
  D)
   All of the above done clear
  View Solution play_arrow

• question_answer55)
  The overall capitalisation rate and the cost of debt remain constant for all degrees of financial leverage is advocated by
  A)
   Traditional approach done clear
  B)
   Net income approach done clear
  C)
   net operating income approach done clear
  D)
   MM approach done clear
  View Solution play_arrow

• question_answer56)
  Which of the following pairs is/are correctly matched?
  A)

  Sources from which dividends   are derived

  Retained earnings

  done clear
  B)

  Medium in which dividends are distributed

  Cash dividend

  done clear
  C)

  The regularity with which dividends are paid

  Interim dividend

  done clear
  D)

  All of the above

  done clear
  View Solution play_arrow

• question_answer57)
  Match the following

  List I (Concepts)		List II (Disadvantages)
  A.	Under capitalisation	1.	Ignores time patterns of returns
  B.	Over capitalisation	2.	Increase in speculative activities
  C.	Profit maximisation	3.	Decline in value of maximisation securities

  Codes
  A)
   A\[\to \]3, B\[\to \]1, C\[\to \]2       done clear
  B)
   A\[\to \]1, B\[\to \]2, C\[\to \]3 done clear
  C)
   A\[\to \]3, B\[\to \]2, C\[\to \]1 done clear
  D)
   A\[\to \]2, B\[\to \]3, C\[\to \]1 done clear
  View Solution play_arrow

• question_answer58)
  Which of the following statements is/are incorrect?
  A)
   Undercapitalisation leads to overcapitalisation done clear
  B)
   ‘Capital’ and ‘Capitalisation’ are synonymous terms done clear
  C)
   Both (a) and (b) done clear
  D)
   None of the above done clear
  View Solution play_arrow

• question_answer59)
  The main reason for adjustments incapital structures include
  A)
   To reduce the cost burden done clear
  B)
   To capitalise the retained earnings done clear
  C)
   To simplify the capital structure done clear
  D)
   All of the above done clear
  View Solution play_arrow

• question_answer60)
  Capital structure denotes the
  A)
   Capital mix                               done clear
  B)
   financing mix done clear
  C)
   Equity mix                                done clear
  D)
   None of the above done clear
  View Solution play_arrow

• question_answer61)
  Which of the following statements is/are incorrect?
  A)
   Finance function is part of the functions of the accountant done clear
  B)
   Finance function is concerned with the procurement of funds and not with their utilisation done clear
  C)
   Both (a) and (b) done clear
  D)
   None of the above done clear
  View Solution play_arrow

• question_answer62)
  Which of the following statements is correct?
  A)
   The cost of retained earnings is always less than the cost of external equity done clear
  B)
   The cost of external equity is always less than the cost of retained earnings done clear
  C)
   The cost of retained earnings is power than the cost of external equity in presence of floatation costs done clear
  D)
   None of the above done clear
  View Solution play_arrow

• question_answer63)
  Which of the following statements is correct regarding calculation of weighted cost of capital?
  A)
   Retained earnings are always excluded done clear
  B)
   Preference capital is given more weight done clear
  C)
   Cost of issue is considered done clear
  D)
   Weights are always based on the book values done clear
  View Solution play_arrow

• question_answer64)
  Which of the following statements is/are incorrect?
  A)
   Retained earnings have no cost because no interest or dividend is paid on them done clear
  B)
   Cost of capital means the minimum rate of return, which a company should get on its investment done clear
  C)
   Both (a) and (b) done clear
  D)
   None of the above done clear
  View Solution play_arrow

• question_answer65)
  To achieve wealth maximization, the finance manager has to take careful decisions in case of
  A)
   Investment                                done clear
  B)
   financing done clear
  C)
   Dividend                                   done clear
  D)
   All of these done clear
  View Solution play_arrow

• question_answer66)
  Financial management is not required to
  A)
   Determine the financial assets done clear
  B)
   Effectively arrange the funds done clear
  C)
   Manages the efficiency of the employees done clear
  D)
   None of the above done clear
  View Solution play_arrow

• question_answer67)
  Financial management is least concern for
  A)
   Financial forecasting done clear
  B)
   Allocation of funds done clear
  C)
   Establishing assets management done clear
  D)
   Gross profit ratio done clear
  View Solution play_arrow

• question_answer68)
  Cost of capital does not mean
  A)
   Cut off rate decided by management done clear
  B)
   Rate of interest done clear
  C)
   Expectations of investors for dividend done clear
  D)
   Money paid to SEBI for permission to acquire capital done clear
  View Solution play_arrow

• question_answer69)
  Which of the following is not very much   relevant   in   dividend decision?
  A)
   Availability of disposable profit done clear
  B)
   Inventories expectations for dividend done clear
  C)
   Capital market conditions done clear
  D)
   Industry practice done clear
  View Solution play_arrow

• question_answer70)
  Capital structure designing has nothing to do with
  A)
   Profitability                               done clear
  B)
   solvency done clear
  C)
   Flexibility                                  done clear
  D)
   transferability done clear
  View Solution play_arrow

• question_answer71)
  Capital structure represents
  A)
   ratio between different forms of capital done clear
  B)
   All liabilities done clear
  C)
   All assets done clear
  D)
   Assets and liabilities done clear
  View Solution play_arrow

• question_answer72)

  Dividend policy of a company mainly concerns with

  I. dividend payout.

  II. stability of dividend.

  Which of the options given above is/are correct?

  A)
   Only I                                      done clear
  B)
   Only II done clear
  C)
   Both I and II                             done clear
  D)
   None of the above done clear
  View Solution play_arrow

• question_answer73)
  Which of the following is not used to estimate cost of equity capital?
  A)
   External yield criterion done clear
  B)
   Dividend plus growth rate done clear
  C)
   Equity capitalisation approach done clear
  D)
   Capital asset pricing model done clear
  View Solution play_arrow

• question_answer74)
  Basic objective of financial management is
  A)
   Maximisation of profits done clear
  B)
   Profit planning of the organisation done clear
  C)
   Maximisation of shareholder's wealth done clear
  D)
   Ensuring financial discipline in the Organisation done clear
  View Solution play_arrow

• question_answer75)
  According to which of the following, the firm's market value is not affected by capital structure?
  A)
   MM hypothesis done clear
  B)
   cet income approach done clear
  C)
   The traditional view done clear
  D)
   None of the above done clear
  View Solution play_arrow

• question_answer76)

  Direction:  In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?

  Assertion (A) Finance is the life blood of business.

  Reason (R) Finance very essential for the smooth running of the business.

  Codes
  A)
                                   Both A and R are true and R is the correct explanation of A done clear
  B)
   Both A and R are true, but R is not the correct explanation of A done clear
  C)
   A is true, but R is false done clear
  D)
   A is false, but R is true done clear
  View Solution play_arrow

• question_answer77)

  Direction:  In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?

  Assertion (A) Finance fulfills only the beginning requirement of the business.

  Reason (R) Finance is needed only to promote business.

  Codes
  A)
                                   Both A and R are true and R is the correct explanation of A done clear
  B)
   Both A and R are true, but R is not the correct explanation of A done clear
  C)
   A is true, but R is false done clear
  D)
   A is false, but R is true done clear
  View Solution play_arrow

• question_answer78)

  Direction:  In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?

  Assertion (A) Financial management is an imaginative function.

  Reason (R) Financial management, is one of the functional areas of management.

  Codes
  A)
                                   Both A and R are true and R is the correct explanation of A done clear
  B)
   Both A and R are true, but R is not the correct explanation of A done clear
  C)
   A is true, but R is false done clear
  D)
   A is false, but R is true done clear
  View Solution play_arrow

• question_answer79)

  Direction:  In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?

  Assertion (A) Effective and efficient management of finance enables the firm to prosper and grow.

  Reason (R) Without adequate finance, business can survive only for a short time.

  Codes
  A)
                                   Both A and R are true and R is the correct explanation of A done clear
  B)
   Both A and R are true, but R is not the correct explanation of A done clear
  C)
   A is true, but R is false done clear
  D)
   A is false, but R is true done clear
  View Solution play_arrow

• question_answer80)

  Direction:  In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?

  Assertion (A) A business firm is usually a profit earning concern.

  Reason (R) Its earnings depend upon the efficient utilisation of funds.

  Codes
  A)
                                   Both A and R are true and R is the correct explanation of A done clear
  B)
   Both A and R are true, but R is not the correct explanation of A done clear
  C)
   A is true, but R is false done clear
  D)
   A is false, but R is true done clear
  View Solution play_arrow

• question_answer81)

  Direction:  In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?

  Assertion (A) The need for financial planning in a concern can be over-emphasised.

  Reason (R) Financial planning helps to provide ahead for any more funds, if required.

  Codes
  A)
                                   Both A and R are true and R is the correct explanation of A done clear
  B)
   Both A and R are true, but R is not the correct explanation of A done clear
  C)
   A is true, but R is false done clear
  D)
   A is false, but R is true done clear
  View Solution play_arrow

• question_answer82)

  Direction:  In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?

  Assertion (A) Financial management provide the base for success of promotion.

  Reason (R) Sound financial plan is very necessary for the success of business enterprise.

  Codes
  A)
                                   Both A and R are true and R is the correct explanation of A done clear
  B)
   Both A and R are true, but R is not the correct explanation of A done clear
  C)
   A is true, but R is false done clear
  D)
   A is false, but R is true done clear
  View Solution play_arrow

• question_answer83)

  Direction:  In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?

  Assertion (A) The value of the concern is determined only by profitability.

  Reason (R) Financial decisions which increase the profitability will decrease the value of the firm.

  Codes
  A)
                                   Both A and R are true and R is the correct explanation of A done clear
  B)
   Both A and R are true, but R is not the correct explanation of A done clear
  C)
   A is true, but R is false done clear
  D)
   A is false, but R is true done clear
  View Solution play_arrow

• question_answer84)

  Direction:  In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?

  Assertion (A) Financial management process begins with the financial planning and decisions.

  Reason (R) Financial management process does not need feedback system.

  Codes
  A)
                                   Both A and R are true and R is the correct explanation of A done clear
  B)
   Both A and R are true, but R is not the correct explanation of A done clear
  C)
   A is true, but R is false done clear
  D)
   A is false, but R is true done clear
  View Solution play_arrow

• question_answer85)

  Direction:  In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?

  Assertion (A) Risk principle of capital structure is one that minimise cost of capital structure.

  Reason (R) According to this principle, reliance is placed more on equity for financial purpose.

  Codes
  A)
                                   Both A and R are true and R is the correct explanation of A done clear
  B)
   Both A and R are true, but R is not the correct explanation of A done clear
  C)
   A is true, but R is false done clear
  D)
   A is false, but R is true done clear
  View Solution play_arrow

• question_answer86)

  Direction:  In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?

  Assertion (A) The capital structure should involve minimum risk of financial insolvency.

  Reason (R) The use of excessive debt threatens the solvency of the company.

  Codes
  A)
                                   Both A and R are true and R is the correct explanation of A done clear
  B)
   Both A and R are true, but R is not the correct explanation of A done clear
  C)
   A is true, but R is false done clear
  D)
   A is false, but R is true done clear
  View Solution play_arrow

• question_answer87)

  Direction:  In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?

  Assertion (A) Traditional approach to financial management ignore routine problems.

  Reason (R) It does not lay focus on day-to-day financial problems of business enterprises.

  Codes
  A)
                                   Both A and R are true and R is the correct explanation of A done clear
  B)
   Both A and R are true, but R is not the correct explanation of A done clear
  C)
   A is true, but R is false done clear
  D)
   A is false, but R is true done clear
  View Solution play_arrow

• question_answer88)

  Direction:  In the questions given below are two statements labelled as Assertion and Reason (R). In the context of the two statements, which one of the following is correct?

  Assertion (A) Modem approach is not a continuous process.

  Reason (R) Financial manager has to play an important role only at the beginning of enterprise.

  Codes
  A)
                                   Both A and R are true and R is the correct explanation of A done clear
  B)
   Both A and R are true, but R is not the correct explanation of A done clear
  C)
   A is true, but R is false done clear
  D)
   A is false, but R is true done clear
  View Solution play_arrow

• question_answer89)

  Direction:  In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?

  Assertion (A) Routine function of finance manager include record keeping and reporting.

  Reason (R) Preparation of various financial statements is not a function of finance manager.

  Codes
  A)
                                   Both A and R are true and R is the correct explanation of A done clear
  B)
   Both A and R are true, but R is not the correct explanation of A done clear
  C)
   A is true, but R is false done clear
  D)
   A is false, but R is true done clear
  View Solution play_arrow

• question_answer90)

  Direction:  In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?

  Assertion (A) Business can survive without earning profit.

  Reason (R) Profit earning is the main aim of every economic activity.

  Codes
  A)
                                   Both A and R are true and R is the correct explanation of A done clear
  B)
   Both A and R are true, but R is not the correct explanation of A done clear
  C)
   A is true, but R is false done clear
  D)
   A is false, but R is true done clear
  View Solution play_arrow

• question_answer91)

  Direction:  In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?

  Assertion (A) A sound financial plan should be rigid.

  Reason (R) In a financing programme, flexibility for future should not be allowed.

  Codes
  A)
                                   Both A and R are true and R is the correct explanation of A done clear
  B)
   Both A and R are true, but R is not the correct explanation of A done clear
  C)
   A is true, but R is false done clear
  D)
   A is false, but R is true done clear
  View Solution play_arrow

• question_answer92)

  Direction:  In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?

  Assertion (A) The risk involved in the business should not be discussed in the beginning.

  Reason (R) The business having more risks should issue ownership securities only.

  Codes
  A)
                                   Both A and R are true and R is the correct explanation of A done clear
  B)
   Both A and R are true, but R is not the correct explanation of A done clear
  C)
   A is true, but R is false done clear
  D)
   A is false, but R is true done clear
  View Solution play_arrow