MCQ for CA Intermediate FMECO - SECTION A - FINANCIAL MANAGEMENT - Chapter 1 - SCOPE AND OBJECTIVES OF FINANCIAL MANAGEMENT

Sample Multiple Choice Questions (MCQ's) for CA Intermediate - Paper 8 - FINANCIAL MANAGEMENT & ECONOMICS FOR FINANCE - SECTION A - FINANCIAL MANAGEMENT - Chapter 1: SCOPE AND OBJECTIVES OF FINANCIAL MANAGEMENT - For Practice relevant for May/November 23 Examinations

 

Q1. Focus of financial management is mainly concerned with the decision related to:

  1. Financing 
  2. Investing
  3. Dividend
  4. All of above

Answer: 4

Q2. The main objective of financial management is to:

  1. Secure profitability
  2. Maximise shareholder wealth
  3. Enhancing the cost of debt
  4. None of above.

Answer: 2

Q3. The shareholder value maximisation model holds that the primary goal of the firm is to maximise its:

  1. Accounting profit
  2. Liquidity
  3. Market value
  4. Working capital

Answer: 3

Q4. Wealth maximisation approach is based on the concept of:

  1. Cost benefit analysis
  2. Cash flow approach
  3. Time value of money
  4. All of the above.

Answer: 4

Q5. Management of all matters related to an organisation’s finances is called:

  1. Cash inflows and outflows
  2. Allocation of resources
  3. Financial management
  4. Finance.

Answer: 3

Q6. Which of the following is the disadvantage of having shareholders wealth maximisation goals?

  1. Emphasizes the short-term gains.
  2. Ignores the timing of returns.
  3. Requires immediate resources.
  4. Offers no clear relationship between financial decisions and share price.

Answer: 4

Q7. The most important goal of financial management is:

  1. Profit maximisation
  2. Matching income and expenditure
  3. Using business assets effectively
  4. Wealth maximisation.

Answer: 4

Q8. To achieve wealth maximization, the finance manager has to take careful decision in respect of:

  1. Investment
  2. Financing
  3. Dividend
  4. All the above

Answer: 4

 

CA Intermediate FMECO - SECTION A - MCQ for Chapter 2 -   

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