Financial Management MCQ Questions and Solutions with Explanations

Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Section 7 Section 8 Section 9 Section 10 Section 11 Section 12 Section 13

11.
This type of risk is avoidable through proper diversification.

A. portfolio risk

B. systematic risk

C. unsystematic risk

D. total risk

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12.
Financial analysts, working capital means the same thing as __________.

A. total assets

B. fixed assets

C. current assets

D. current assets minus current Liabilities

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13.
Which of the following is a basic principle of finance as it relates to the management of working capital?

A. Profitability varies inversely with risk

B. Liquidity moves together with risk

C. Profitability moves together with risk

D. Profitability moves together with liquidity

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14.
The return relative solves the problem of______________.

A. inflation

B. negative returns

C. interest rates

D. tax differences

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15.
If the Dow Jones Industrials had a price appreciation of 6 percent one year and yet Total return for the year was 11 percent; the difference would be due to___________.

A. the tax treatment of capital gains

B. the cumulative wealth effect

C. dividends

D. profits

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16.
Shareholder wealth in a firm is represented by___________.

A. the number of people employed in the firm

B. the book value of the firm's assets less the book value of its liabilities

C. the amount of salary paid to its employees

D. the market price per share of the firms common stock

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17.
In order to determine the compound growth rate of an investment over some period, an investor would calculate the_____________.

A. arithmetic mean

B. geometric mean

C. calculus mean

D. arithmetic median

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18.
Net present value is a popular method which falls

A. With in non- discount cash flow method

B. With in discount cash flow method

C. Equal With in non- discount cash flow method

D. No discount cash flow

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19.
A major difference between real and nominal returns is that_______________.

A. real returns adjust for inflation and nominal returns do not

B. real returns use actual cash flows and nominal returns use expected cash flows

C. real returns adjust for commissions and nominal returns do not

D. real returns show the highest possible return and nominal returns show the lowest possible return

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20.
When most people refer to the mean, they are referring to the______________.

A. median

B. arithmetic mean

C. geometric mean

D. cumulative mean

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Financial Management MCQ Questions and Solutions with Explanations | Commerce

11. This type of risk is avoidable through proper diversification.

Answer & Solution

12. Financial analysts, working capital means the same thing as __________.

Answer & Solution

13. Which of the following is a basic principle of finance as it relates to the management of working capital?

Answer & Solution

14. The return relative solves the problem of______________.

Answer & Solution

15. If the Dow Jones Industrials had a price appreciation of 6 percent one year and yet Total return for the year was 11 percent; the difference would be due to___________.

Answer & Solution

16. Shareholder wealth in a firm is represented by___________.

Answer & Solution

17. In order to determine the compound growth rate of an investment over some period, an investor would calculate the_____________.

Answer & Solution

18. Net present value is a popular method which falls

Answer & Solution

19. A major difference between real and nominal returns is that_______________.

Answer & Solution

20. When most people refer to the mean, they are referring to the______________.

Answer & Solution

Read More Section(Financial Management)

11.
This type of risk is avoidable through proper diversification.

12.
Financial analysts, working capital means the same thing as __________.

13.
Which of the following is a basic principle of finance as it relates to the management of working capital?

14.
The return relative solves the problem of______________.

15.
If the Dow Jones Industrials had a price appreciation of 6 percent one year and yet Total return for the year was 11 percent; the difference would be due to___________.

16.
Shareholder wealth in a firm is represented by___________.

17.
In order to determine the compound growth rate of an investment over some period, an investor would calculate the_____________.

18.
Net present value is a popular method which falls

19.
A major difference between real and nominal returns is that_______________.

20.
When most people refer to the mean, they are referring to the______________.