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MBA Finance Investment Management — practice questions

Explore 113 free Investment Management questions in MBA Finance Financial Management. Open each question or exercise to read its content, reference answers and available explanation.

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Investment Management questions and exercises with answers

Showing questions 1–30 of 113.

Money required for carrying out business activities is called:Read the answer and worked solution →Financial management is concerned with the optimal procurement and:Read the answer and worked solution →The primary aim of financial management is to maximise:Read the answer and worked solution →The three broad financial decisions are investment, financing and:Read the answer and worked solution →A long-term investment decision, such as buying a new machine, is called a:Read the answer and worked solution →Decisions about levels of cash, inventory and receivables are:Read the answer and worked solution →Two projects carry the same risk but return 10 and 12 per cent. Normally the firm picks:Read the answer and worked solution →Shareholders' funds refer to equity capital and:Read the answer and worked solution →Interest must be paid whether or not a firm earns profit, so debt brings:Read the answer and worked solution →The cost incurred in raising funds is called:Read the answer and worked solution →Debt is considered the cheapest source partly because interest is:Read the answer and worked solution →A company afraid of a takeover bid, wanting no dilution of control, will prefer:Read the answer and worked solution →The portion of profit distributed to shareholders is the:Read the answer and worked solution →Companies with good growth opportunities generally pay dividends that are:Read the answer and worked solution →Even a profitable company may not declare a dividend if it is short of:Read the answer and worked solution →Investors generally view an increase in dividend as:Read the answer and worked solution →Preparing a financial blueprint of a firm's future operations is:Read the answer and worked solution →Financial planning is typically done for a period of:Read the answer and worked solution →Financial plans made for a period of one year or less are called:Read the answer and worked solution →Financial planning usually begins with the preparation of a:Read the answer and worked solution →The mix between owners' funds and borrowed funds is called:Read the answer and worked solution →The chance that a firm fails to meet its payment obligations is called:Read the answer and worked solution →Catch the owners fundsRead the answer and worked solution →Pop the finance decisionsRead the answer and worked solution →Run the finance decisionsRead the answer and worked solution →Slice the finance wordsRead the answer and worked solution →Debt or equityRead the answer and worked solution →Sort the three decisionsRead the answer and worked solution →Type the numberRead the answer and worked solution →Finance bingoRead the answer and worked solution →

Worked practice questions

Money required for carrying out business activities is called:

  1. Business finance
  2. Business licence
  3. Business premise
  4. Business mandate
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Correct answer: A. Business finance

1. It is needed to start, run and expand a firm. 2. It buys tangible and intangible assets. 3. That money is business finance. _Source: syllabus Business Studies Part II, Chapter 9, Financial Management._

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Financial management is concerned with the optimal procurement and:

  1. Pricing of output
  2. Usage of finance
  3. Auditing of taxes
  4. Hiring of workers
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Correct answer: B. Usage of finance

1. Sources are compared on cost and risk. 2. Funds must then earn more than they cost. 3. So it covers procurement and usage. _Source: syllabus Business Studies Part II, Chapter 9, Financial Management._

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The primary aim of financial management is to maximise:

  1. Shareholders' wealth
  2. Employee headcount
  3. Factory floor space
  4. Advertising budget
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Correct answer: A. Shareholders' wealth

1. This is the wealth-maximisation concept. 2. It means raising the market price of equity shares. 3. Value must be added by every decision. _Source: syllabus Business Studies Part II, Chapter 9, Financial Management._

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More Financial Management topics

Corporate FinanceFinancial ManagementBusiness StudiesFinancial MarketsSimple and Compound InterestTime Value of MoneySecurities MarketsCapital Budgeting