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Financial Management MCQ - Financial Management Section 3

1 Assertion (A): The floating policy protects the policyholder against errors and omissions.
Reason(R): Goods are insured even if the policyholder fails to reports that goods have already been forwarded from the place of shipment.

2 Which is the internal source of finance?

3 What are home-made dividends and why would investors 'make' them?

4 Match the following

List-I (Form of dividend)	List-II (Feature)
(A) Cash dividend	1. Liquidity
(B) Stock dividend	2. Bonus Share
(C) Bond dividend	3. Promissory Note
(D) Property dividend	4. Securities
	5. Between two Financial Year

5 Match the following

List-I (Functions of Financial Management)	List-II (Elements)
(A) Cost of Control	1. Reduction in Price
(B) Managing Assets	2. Cost Increase
(C) Raising of Funds	3. Issue of Capital
(D) Forecasting Cash flows	4. Cash Mobility
	5. Forecasting

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Question:

Capital budgeting is a complex process as it involves decisions to the investment of current funds for the benefit to be achieved in future and the future is

A. Profitable
B. Always Uncertain
C. Always Certain
D. Non Profitable

Correct answer: B

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