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Financial Management MCQ Questions and Solutions with Explanations | Commerce

Financial Management MCQ Questions and answers with easy and logical explanations. Commerce provides you all type of quantitative and competitive aptitude mcq questions with easy and logical explanations. Financial Management MCQ is important for exams like B.COM, M.COM, BBA, BBM, CA, CS, CMA, CPA, CFA, UPSC, NET, Banking and other commerce department exam. Page-6 section-10

Each section contains 100 MCQs on Financial Management .
51
Corporate governance charter of rules of behaving is applicable on
Discuss
Answer & Solution
Answer: Option D
Solution:
Corporate governance charter of rules of behaving is applicable on competitors, shareholders and directors.
52
Limited partners in partnership business have
Discuss
Answer & Solution
Answer: Option A
Solution:
Limited partners in partnership business have no control. Limited partnerships consist of partners who maintain an active role in the management of the business, and those who just invest money and have a very limited role in management. These limited partners are essentially passive investors whose liability is limited to their initial investment. Limited partnerships have more formal requirements than the other two types of partnerships.
53
A type of business ownership in which two or more entities join together for profit purpose is classified as
Discuss
Answer & Solution
Answer: Option A
Solution:
A type of business ownership in which two or more entities join together for profit purpose is classified as partnership. A partnership is a formal arrangement by two or more parties to manage and operate a business and share its profits. There are several types of partnership arrangements. In particular, in some partnerships, all partners share liabilities and profits equally, while in others, partners have limited liability.
54
Bonds issued to individuals by corporations are classified as
Discuss
Answer & Solution
Answer: Option B
Solution:
Bonds issued to individuals by corporations are classified as corporate bonds. A corporate bond is a debt security issued by a corporation and sold to investors. The backing for the bond is usually the payment ability of the company, which is typically money to be earned from future operations. In some cases, the company's physical assets may be used as collateral for bonds.
55
Financial security in which there is no default risk and issues by U.S governments is classified as
Discuss
Answer & Solution
Answer: Option A
Solution:
Financial security in which there is no default risk and issues by U.S governments is classified as U.S treasury bonds. Treasury bonds are U.S. government debt securities with a maturity range between 10 and 30 years and which are marketable and set at a fixed interest rate. T-bonds pay semiannual interest payments until maturity, at which point the face value of the bond is paid to the owner.
56
Financial security issues by major banks and risk depends on strength of issuer is classified as
Discuss
Answer & Solution
Answer: Option A
Solution:
Financial security issues by major banks and risk depends on strength of issuer is classified as negotiable certificate of deposit. Financial security refers to the peace of mind you feel when you aren't worried about your income being enough to cover your expenses. It also means that you have enough money saved to cover emergencies and your future financial goals.
57
An unlimited liability is classified as liabilities of the
Discuss
Answer & Solution
Answer: Option B
Solution:
An unlimited liability is classified as liabilities of the general partners. A general partnership is a business arrangement by which two or more individuals agree to share in all assets, profits and financial and legal liabilities of a jointly-owned business structure.
58
Financial security kept by non-financial corporations is
Discuss
Answer & Solution
Answer: Option C
Solution:
Financial security kept by non-financial corporations is short term treasury bills. Treasury bills are issued when the government need money for a shorter period while bonds are issued when it need debt for more than say five years.
59
A retirement plans funded for workers by corporations, administered and commercial banks are classified as
Discuss
Answer & Solution
Answer: Option B
Solution:
A retirement plans funded for workers by corporations, administered and commercial banks are classified as pension funds. Pension funds are pooled monetary contributions from pension plans set up by employers, unions, or other organizations to provide for their employees' or members' retirement benefits.
60
Markets dealing loans of autos, education, vacations and appliances are considered as
Discuss
Answer & Solution
Answer: Option A
Solution:
Markets dealing loans of autos, education, vacations and appliances are considered as consumer credit loans. Consumer credit is personal debt taken on to purchase goods and services. A credit card is one form of consumer credit.