Financial Management MCQ With Answers PDF: These financial management multiple choice questions are based on General Awareness for Competitive Exams like Banking & SSC Exams, State PSC Exams, TNPSC Exams, UGC NET & CSAT Exams, Railway Exams, MBA/BBA/BCA/MCA/B.Com (Part-time) entrance Test, State Level Engineering Entrance Test and other Graduate Level Entrance Examinations.

Introduction to financial management involves not only giving effect to the working capital policy of a business organization, but also the most effective utilization and control of its investment capital. While working capital is vital for active enterprises and concerns making profits, it could prove disastrous if bad business decisions are made with large amounts of investment capital. Financial management is involved in keeping a close watch on investments, safeguarding working capital, and ensuring that both are preserved. Read this article to learn more about financial management with answers.

Financial Management MCQ With Answers

1. The full form of CAPM is ______

A. Capital access pricing model

B. Capital assessment pricing model

C. Capital advantage pricing model

D. Capital asset pricing model

Answer: Capital asset pricing model

2. _________ maximization objectives fail to recognize quality of benefits i.e. risk factor.

A. Value

B. Wealth

C. Profit

D. Both A & B

Answer: Profit

3. _____ Maximization objective ignores the timing of benefit i.e time value of money.

A. Profit

B. Wealth

C. Value

D. Both A & B

Answer: Profit

4. Financial Management is mainly concerned with ________.

A. acquiring financial resources for firms activities

B. utilizing financial resources for firms activities

C. procurement of funds of the enterprise

D. All of the above

Answer: All of the above

5. Select the correct option.

A. Profits maximisation can be part of a Wealth maximisation strategy

B. Wealth maximisation can be part of a Profits maximisation strategy

C. Profits maximisation and Wealth maximisation strategy are the same

D. Wealth maximisation is completely different from Profits maximisation strategy

Answer: Profits maximisation can be part of a Wealth maximisation strategy

6. According to Massie, Financial management is the __________activity of a business.

A. operational

B. marketing

C. human resource management

D. sales

Answer: operational

7. Financial management process deals with _______

A. investments

B. financing decisions

C. profit maximization

D. more assets

Answer: financing decisions

8. Financial management mainly focuses on _______.

A. Arrangement of funds

B. Efficient management of every business

C. Brand dimension

D. All elements of acquiring and using means of financial resources for financial activities

Answer: All elements of acquiring and using means of financial resources for financial activities

9. Financial management is an _______ function of any business.

A. organic

B. inorganic

C. conventional

D. least important

Answer: organic

10. ______ is concerned with the duties of the financial managers in the business firm.

A. Financial Management

B. Accounting Management

C. Personnel Management

D. Merger

Answer: Financial Management

11. The financial management function has become _____ and complex.

A. Less demanding

B. More demanding

C. Less important

D. Outdated

Answer: More demanding

12. The ______ approach of financial management provides an analytical framework for financial problems.

A. Classical

B. Traditional

C. Modern

D. Empirical

Answer: Modern

13. The ______approach of financial management fully ignores the internal decision-making.

A. Business finance

B. Traditional

C. Modern

D. two sided

Answer: Traditional

14. _______ is the main goal of financial management.

A. profit maximization

B. fund transfer

C. maximum returns

D. wealth maximization

Answer: wealth maximization

15. The main objective of financial management of an enterprise is to _________.

A. maximize the business expenses

B. maximize the profit

C. maintain bill and payments

D. maximise the production costs

Answer: maximize the profit

16. The full form of GST is _______

A. Good & Simple Tax

B. Goods & Sales Tax

C. Goods & Services Tax

D. Goods & Salary Tax

Answer: Goods & Services Tax

17. For maximizing the profit, production is to be ________.

A. minimized

B. ignored

C. maximized

D. downsized

Answer: maximized

18. The concept of Financial management is mainly related to ______

A. arrangement of funds for the company

B. procurement & utilization of funds for company operations

C. profit maximization for the organization

D. accounting of profit and loss on yearly basis

Answer: procurement & utilization of funds for company operations

19. For maximizing the profit, the costs should be ______.

A. minimized

B. ignored

C. maximized

D. upgraded

Answer: minimized

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