Classical

Financial Management - FInancial Management Questions

41:  

"Capital budgeting as acquiring inputs with long run return". Who said?

A.

Richard and Green

B.

J. Betty

C.

Charles Horngreen

D.

Lynch

 
 

Option: A

Explanation :


42:  

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.

 
 

Option: B

Explanation :


43:  

The proposal is rejected in case the profitability index is

A.

Less than one 

B.

Less than zero

C.

Less than two 

D.

Less than five

 
 

Option: A

Explanation :


44:  

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.

 
 

Option: A

Explanation :


45:  

Capital budgeting is

A.

Actually the process of making investment decisions in capital expenditure

B.

A profit

C.

A sales

D.

A cost

 
 

Option: A

Explanation :




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