Primary aim or objective of finance management is
Profit maximization
Wealth maximization
Maintenance of liquidity
None of these
Factors affecting the working capital of the firm.
Length of operating cycle
Credit policy
Business cycle fluctuation
All of these
Which of the following is not a financial function.
Investment decision
Financial decision
Dividend decision
Higher dividends per share is associated with
Higher earnings, high cash flows, unusable earnings and higher growth opportunities.
Higher earnings, high cash flows, stable earnings and high growth opportunities.
High earnings, high cash flows, stable earnings and lower growth opportunities.
Which type of management is concerned with efficient acquisition and allocation of funds?
Marketing Management
Financial Management
Investment Management
Other things remaining the same, an increase in the tax rate on corporate profits will
Make debt relatively cheaper
Make debt relatively less cheap home
No impact on the cost of debt
Current assets of a business firm should be financed through
Current liability only
Long term liability only
Partly from both types i.e long and short term liabilities
Financial leverage is called favorable if
Return on Investment is lower than cost of debt
ROI is higher than cost of debt
Debt is nearly available
Higher working capital usually results in
Higher current ratio, higher risk and higher profits
Lower current ratio, higher risk and profits
Higher equitably, lower risk and lower profits
Companies with higher growth paternal are likely to
Pay lower dividends
Pay higher dividends
Dividends are not affected by growth considerations
