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Module 2

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28 views6 pages

Module 2

Uploaded by

vj392519
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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1.

#Module 1 : Introduction

The financial environment includes:

a. Economic conditions and regulations


b. Social media trends and customer behavior
c. Marketing strategies and advertising campaigns
d. Political ideologies and cultural norms

Which of the following best defines financial management?

a. Managing personal finances


b. Managing a company's money
c. Managing financial markets
d. Managing investment portfolios

Return on investment is a measure of:

a. The profitability of a project or investment


b. The time required to recover the initial investment
c. The risk associated with an investment
d. The present value of future cash flows

The time value of money is based on the concept that:

a. Money depreciates over time


b. Money has a fixed value over time
c. Money can be invested to earn returns over time
d. Money has a different value in different countries

Which of the following is NOT a capital structure theory?

a. Net income approach


b. Net operating income approach
c. Traditional approach
d. Weighted average cost of capital (WACC) approach

Which of the following is an example of a financial instrument?

a. Car
b. Patent
c. Treasury bill
d. Computer software

The changing role of finance managers includes a shift towards:

a. More operational tasks


b. Less reliance on technology
c. Strategic decision-making
d. Outsourcing financial functions

What is risk-return analysis in financial management?

a. Assessing the potential risks and rewards of an investment


b. Analyzing the historical performance of a company's stock
c. Evaluating the impact of inflation on investment returns
d. Determining the optimal debt-equity ratio for a firm

What is the primary role of finance managers in an organization?

a. Maximizing shareholder wealth


b. Minimizing costs
c. Maximizing revenue
d. Minimizing risks

Which of the following is NOT an objective of a firm?

a. Profit maximization
b. Wealth maximization
c. Revenue maximization
d. Market share maximization

What is the role of financial markets?

a. To provide a platform for buying and selling financial instruments


b. To regulate the economy and control inflation
c. To manage government budgets and public finances
d. To promote international trade and commerce

How does the time value of money affect financial decision-making?

a. It emphasizes the importance of immediate consumption


b. It highlights the potential for future returns on investment
c. It reduces the significance of inflation in financial calculations
d. It discourages long-term financial planning

What is the primary goal of financial management?

a. Maximizing profits
b. Minimizing costs
c. Maximizing shareholder wealth
d. Achieving market dominance

What is the relationship between risk and return in financial management?


a. Higher risk is always associated with higher return
b. Lower risk is always associated with higher return
c. Risk and return are not related in financial management
d. Risk and return are inversely related in financial management

If P = 1,000, R = 5% p.a, n = 4; What is Amount and C.I. is

a. 1,215.50, 215.50
b. 1,125, 125
c. 2,115, 115
d. 2,215, 215

The present value of annuity of INR. 5,000 per annum for 12 years at 4% p.a C.I. annually is

a. 46,000
b. 45,850
c. 15,000
d. 46925

The time in which a sum of money will be double at 5% p.a C.I is

a. 10 years
b. 12 years
c. 14.2 years
d. 15.2 years

1. #Module 2 : Financing Decision

The net operating income approach to capital structure emphasizes the relationship between:

a. Earnings before interest and taxes (EBIT) and net income


b. Earnings before interest and taxes (EBIT) and earnings per share (EPS)
c. Net operating income and net income
d. Net operating income and earnings per share (EPS)

2. #Module 1 : Introduction

The financial environment includes:

a. Economic conditions and regulations


b. Social media trends and customer behavior
c. Marketing strategies and advertising campaigns
d. Political ideologies and cultural norms

Which of the following best defines financial management?


a. Managing personal finances
b. Managing a company's money
c. Managing financial markets
d. Managing investment portfolios

Return on investment is a measure of:

a. The profitability of a project or investment


b. The time required to recover the initial investment
c. The risk associated with an investment
d. The present value of future cash flows

The time value of money is based on the concept that:

a. Money depreciates over time


b. Money has a fixed value over time
c. Money can be invested to earn returns over time
d. Money has a different value in different countries

Which of the following is NOT a capital structure theory?

a. Net income approach


b. Net operating income approach
c. Traditional approach
d. Weighted average cost of capital (WACC) approach

Which of the following is an example of a financial instrument?

a. Car
b. Patent
c. Treasury bill
d. Computer software

The changing role of finance managers includes a shift towards:

a. More operational tasks


b. Less reliance on technology
c. Strategic decision-making
d. Outsourcing financial functions

What is risk-return analysis in financial management?

a. Assessing the potential risks and rewards of an investment


b. Analyzing the historical performance of a company's stock
c. Evaluating the impact of inflation on investment returns
d. Determining the optimal debt-equity ratio for a firm

What is the primary role of finance managers in an organization?


a. Maximizing shareholder wealth
b. Minimizing costs
c. Maximizing revenue
d. Minimizing risks

Which of the following is NOT an objective of a firm?

a. Profit maximization
b. Wealth maximization
c. Revenue maximization
d. Market share maximization

What is the role of financial markets?

a. To provide a platform for buying and selling financial instruments


b. To regulate the economy and control inflation
c. To manage government budgets and public finances
d. To promote international trade and commerce

How does the time value of money affect financial decision-making?

a. It emphasizes the importance of immediate consumption


b. It highlights the potential for future returns on investment
c. It reduces the significance of inflation in financial calculations
d. It discourages long-term financial planning

What is the primary goal of financial management?

a. Maximizing profits
b. Minimizing costs
c. Maximizing shareholder wealth
d. Achieving market dominance

What is the relationship between risk and return in financial management?

a. Higher risk is always associated with higher return


b. Lower risk is always associated with higher return
c. Risk and return are not related in financial management
d. Risk and return are inversely related in financial management

If P = 1,000, R = 5% p.a, n = 4; What is Amount and C.I. is

a. 1,215.50, 215.50
b. 1,125, 125
c. 2,115, 115
d. 2,215, 215
The present value of annuity of INR. 5,000 per annum for 12 years at 4% p.a C.I. annually is

a. 46,000
b. 45,850
c. 15,000
d. 46925

The time in which a sum of money will be double at 5% p.a C.I is

a. 10 years
b. 12 years
c. 14.2 years
d. 15.2 years

2. #Module 2 : Financing Decision

The net operating income approach to capital structure emphasizes the relationship between:

a. Earnings before interest and taxes (EBIT) and net income


b. Earnings before interest and taxes (EBIT) and earnings per share (EPS)
c. Net operating income and net income
d. Net operating income and earnings per share (EPS)

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