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Finance Mcqs

A major facet of financial management involves providing the financing necessary to support:

A. Liabilities
B. Debts
C. Loans
D. Assets

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The Board of Directors sets company-wide policy and advices the CEO and other senior executies, who manage the company’s:

A. Managerial activities
B. Year-to-Year activities
C. Day-to-Day activities
D. Financial activities

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Corporate governance encompasses the relationship among a company’s:

A. Shareholders and board of director
B. Board of directors and senior management
C. Shareholders and senior management
D. Shareholders, board of directors and senior management

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

A. Management System
B. Strategic System
C. Corporate Governance
D. Internal System

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

A. Stakeholders
B. Directors
C. Chief executives
D. Subordinates

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Stakeholders include:

A. Stakeholders
B. Creditors and customs
C. Employees and suppliers
D. All of Them

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An individual authorized by another person, called the principle, to act on the latter’s on behalf is known as an/a:

A. Agent
B. Servant
C. Subordinate
D. Assistant

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Profit maximization is the maximizing a firm’s Earning:

A. Before Tax
B. After Tax
C. Both A and B
D. None of Them

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

A. Earning per share ratio
B. Proposed dividend ratio
C. Dividend payout ratio
D. Expected dividend ratio

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The investment decision is the most important of the firm’s three major decisions, when it comes to:

A. Value creation
B. Value addition
C. Value proposition
D. Value deletion

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