Classical

Financial Management - Financial Management Objective Questions

36:  

Which is the limitation of Traditional approach of Financial Management

A.

More emphasis on long term problems

B.

One-sided approach

C.

Ignores allocation of resources

D.

All of the above

 
 

Option: D

Explanation :


37:  

A company earns sufficient profit before the close of the financial year and its management declares dividend, this dividend is called

A.

Special dividend

B.

Final dividend

C.

Interim dividend

D.

Proposed dividend

 
 

Option: C

Explanation :


38:  

If the annual cash inflows are constant, the pay-back period can be computed by dividing cash outlay by

A.

Annual cash inflow

B.

Annual Sales flows

C.

Expenses

D.

Profit

 
 

Option: A

Explanation :


39:  

Which is the element of capital budgeting decision?

A.

Capital expenditure project

B.

A long term investment

C.

A long term effect

D.

All of the above

 
 

Option: D

Explanation :


40:  

When Capital Redemption Reserve Account is opened?

A.

At the time of equity repayment

B.

At the time of Preference Share Redemption

C.

At the time of Reserve

D.

All of the above

 
 

Option: B

Explanation :




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