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MCQs for Financial Management
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MCQs for Financial Management
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25 Questions

1. A company is likely to declare higher dividends if
2. If in a particular situation, the earnings per share (EPS) falls with the increased use of debt, it indicates that
3. When the stock market index is rising, a company may issue in order to meet its financial requirements.
4. This decision determines the overall cost of capital and the financial risk of the enterprise,
5. The short-term financial plans are known as
6. The size of assets, the profitability and competitiveness are all affected by
7. Lalit, an experienced stock broker advised his client Prabhu to invest in the shares of Blue Angel Limited, as the company has declared high dividends since an increase in dividend is perceived as a good news and stock prices react positively to it. Identify the related factor of dividend decision being described in the above lines.
8. Under which of the following conditions the fixed capital requirements of a business is not likely to below?
9. Primary aim of financial management is to
10. Gamble Limited is a company dealing in healthcare products. The company is earning high profits but is short on cash, so it has decided to declare less dividends in the current financial year. Identify the factor related to dividend decision being described in the above lines.
11. The overall financial risk depends upon the
12. It is essentially the preparation of a financial blueprint of an organisation's future operations. Identify the related concept.
13. Name the process that enables the management to foresee the fund requirements, both the quantum as well as the timing.
14. Business finance is needed to
15. This decision is about the quantum of finance to be raised from various long-term sources.
16. Financial Management aims at
17. While taking a loan from a financial institution, Lokesh Enterprises signed an agreement that they shall not pay dividend to its shareholder more than 15% until the loan is repaid, or dividend shall not be declared if the liquidity ratio is found to be less than 1:1. Identify the factor related to dividend decision being described in the above case.
18. The total capital of Uranium Private Limited is ?50 lacs. The amount of debt is ?20 lacs. The company has earned a profit of ^10 lacs during the current financial year. Its return on investment (ROI) for the present year is
19. Under which of the following situations a company is not likely to issue equity capital?
20. A higher financial leverage ratio indicates that
21. When the stock market is bearish, a company may depend upon in order to raise the required funds.
22. The financial plans are drawn by taking into consideration
23. The working capital requirement of a business is not likely to be low when
24. Under which of the following circumstances the fixed capital requirement of a business is not likely to be high?
25. Amber Limited has been experiencing a downfall in its popularity, due to growing competition. Also the company doesn't see any forthcoming viable business expansion opportunities in the near future. So the management of the company has decided to declare high dividends for the current financial year. Identify the factor related to dividend decision being described above.

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