Business Finance MCQS Lec 1,2,3 PDF

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Business Finance Multiple Choice Questions Lecture 1,2,3 (The Role of Financial Management)

1) __________ is concerned with the acquisition, financing, and management of assets with some overall goal in mind. a) financial management b) profit maximization c) Agency theory d) Accounting 2) The decision function of financial management can be broken down into the _____ Decisions. a) financing and investment b) investment, financing, and asset management c) financing and dividend d) capital budgeting, cash management, and credit management 3) What is the goal of the firm? a) Stakeholder maximization b) profit maximization c) EPS maximization. d) Shareholder wealth maximization.

4) ________ refers to the system by which corporations are managed and controlled. a) Corporate governance b) Corporate Social Responsibility (CSR) c) Sustainability d) Agency theory

5) __________ is the branch of economics relating to the behavior of principals and their agents. a) Sustainability b) Corporate social responsibility c) Agency theory d) Profit maximization

6) ___________ Individual authorized by another person, called the principal, to act on the latter’s behalf.

a) Shareholder b) Corporate c) Agent d) Stakeholder 7) ________ companies honored international CSR awards in pakistan in 2019. a) 56 b) 57 c) 58 d) 59

8) Meeting the needs of the present without compromising the ability of future generations to meet their own needs is ___________. a) Sustainability b) Agency theory c) Corporate social responsibility d) Stakeholders 9) ____________ has been given the power to adopt auditing, quality control, ethics, and disclosure standards for public companies and their auditors as well as investigate and discipline those involved. a) Sarbanes-Oxley Act of 2002 (SOX). b) Board of Directors c) Corporate Social Responsibility (CSR) d) Public Company Accounting Oversight Board (PCAOB) 10) The __________ decision involves make-up of the right-hand side of the balance sheet. a) Asset management b) Financing c) Investment d) Capital budgeting

11) __________ decision greater emphasize on current asset management than fixed asset management. a) Asset management b) Financing c) Investment d) Capital budgeting 12) __________ occurs when we maximize the share price for current shareholders. a) Profit maximization b) Earnings per share c) Value creation d) Capital budgeting 13) Earnings after taxes (EAT) divided by the number of common shares outstanding. a) Profit maximization b) Earnings per share c) Value creation d) Capital budgeting 14) Which of the following includes in vice president (controller). a) preparing budgets b) Capital budgeting c) Credit management d) Cash management 15) Which of the following includes in vice president (Treasurer). a) Preparing budgets b) Preparing forecasts c) Investor relations d) Internal control...