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Unit 1 MCQ

1. Shareholder wealth in a firm is represented by the market price per share of the firm's common stock. 2. The long-run objective of financial management is to maximize the value of the firm's common stock. 3. The focal point of financial management in a firm is the creation of value for shareholders.

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616 views

Unit 1 MCQ

1. Shareholder wealth in a firm is represented by the market price per share of the firm's common stock. 2. The long-run objective of financial management is to maximize the value of the firm's common stock. 3. The focal point of financial management in a firm is the creation of value for shareholders.

Uploaded by

vini2710
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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1.

"Shareholder wealth" in a firm is represented by:

a) the number of people employed in the firm.

b) the book value of the firm's assets less the book value of its liabilities

c) the amount of salary paid to its employees.

d) the market price per share of the firm's common stock.

2. The long-run objective of financial management is to:

a) maximize earnings per share.

b) maximize the value of the firm's common stock.

c) maximize return on investment.

d) maximize market share.

3.

earning at the year end? a) Rs. 100,000

b) Rs. 6.00

c) Rs. 0.50

4. A(n)

an agent.
a) shareholder; manager

b) manager; owner

c) accountant; bondholder

d) shareholder; bondholder

principal, while a(n) would be an example of

5. The market price of a share of common stock is determined by:

a) the board of directors of the firm.

b) the stock exchange on which the stock is listed.

c) the president of the company.

d) individuals buying and selling the stock.

6. The focal point of financial management in a firm is:

a) the number and types of products or services provided by the firm.

b) the minimization of the amount of taxes paid by the firm.

c) the creation of value for shareholders.

d) the dollars profits earned by the firm.

7. Financial management process deals with

a) Investments
b) Financing decisions
c) Both a and b
d) None of the above

8. Financial management mainly focuses on

a) Efficient management of every business


b) Brand dimension
c) Arrangement of funds
d) All elements of acquiring and using means of financial resources for financial activities

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