finance MCQs with Answers

This is finance MCQs section with detailed explanations for preparation of screening tests, interviews for government jobs. In this section candidate will learn MCQs on variety of topics from the subject.

1. 1 ___________ is concerned with the acquisition, financing, and management of assets with some overall goal in mind.
   

   1. Financial management

   2. Profit maximization

   3. Agency theory

   4. Social responsibility

   See Answer

   Added By: Ak Aamir

   Answer

   : Financial management

   Explanation

   :
   N/A

2. 2 Having some overall goal in mind, financial management is concerned with:
   

   1. Acquisition of assets

   2. Financing of assets

   3. Management of assets

   4. All of them

   See Answer

   Added By: Ak Aamir

   Answer

   : All of them

   Explanation

   :
   N/A

3. 3 The investment decision is the most important of the firms three major decisions, when it comes to:
   

   1. Value creation

   2. Value addition

   3. Value proposition

   4. Value deletion

   See Answer

   Added By: Ak Aamir

   Answer

   : Value creation

   Explanation

   :
   N/A

4. 4 Annual cash dividends divided by annual earnings; or alternatively, dividends per share divided by earning per share is termed as:
   

   1. Earning per share ratio

   2. Proposed dividend ratio

   3. Dividend payout ratio

   4. Expected dividend ratio

   See Answer

   Added By: Ak Aamir

   Answer

   : Dividend payout ratio

   Explanation

   :
   N/A

5. 5 Profit maximization is the maximizing a firms Earning:
   

   1. Before Tax

   2. After Tax

   3. Both A and B

   4. None of Them

   See Answer

   Added By: Ak Aamir

   Answer

   : After Tax

   Explanation

   :
   N/A

6. 6 An individual authorized by another person, called the principle, to act on the latters on behalf is known as an/a:
   

   1. Agent

   2. Servant

   3. Subordinate

   4. Assistant

   See Answer

   Added By: Ak Aamir

   Answer

   : Agent

   Explanation

   :
   N/A

7. 7 Stakeholders include:
   

   1. Stakeholders

   2. Creditors and customs

   3. Employees and suppliers

   4. All of Them

   See Answer

   Added By: Ak Aamir

   Answer

   : All of Them

   Explanation

   :
   N/A

8. 8 All the constituencies with a stake in the fortunes of the company are termed as:
   

   1. Stakeholders

   2. Directors

   3. Chief executives

   4. Subordinates

   See Answer

   Added By: Ak Aamir

   Answer

   : Stakeholders

   Explanation

   :
   N/A

9. 9 The system by which companies are managed and controlled is known as:
   

   1. Management System

   2. Strategic System

   3. Corporate Governance

   4. Internal System

   See Answer

   Added By: Ak Aamir

   Answer

   : Corporate Governance

   Explanation

   :
   N/A

10. 10 Corporate governance encompasses the relationship among a companys:
    

    1. Shareholders and board of director

    2. Board of directors and senior management

    3. Shareholders and senior management

    4. Shareholders, board of directors and senior management

    See Answer

    Added By: Ak Aamir

    Answer

    : Shareholders, board of directors and senior management

    Explanation

    :
    N/A