#1
Which of the following is a primary goal of financial management?
Maximizing shareholder wealth
Minimizing employee turnover
Increasing customer satisfaction
Expanding market share
#2
What does the term 'ROI' stand for in financial management?
Return on Investment
Revenue Over Income
Risk of Investment
Rate of Income
#3
What is the primary function of a financial manager in an organization?
To manage human resources
To oversee marketing strategies
To make financial decisions that maximize shareholder wealth
To handle customer service operations
#4
Which financial statement reports a company's revenues and expenses over a specific period?
Balance sheet
Cash flow statement
Income statement
Statement of retained earnings
#5
Which financial metric represents a company's ability to meet its short-term financial obligations?
Return on Investment (ROI)
Current ratio
Net profit margin
Debt-to-Equity ratio
#6
Which financial statement provides a snapshot of a company's financial position at a specific point in time?
Income statement
Cash flow statement
Balance sheet
Statement of retained earnings
#7
What does the 'time value of money' concept in finance emphasize?
Money's potential to grow over time
The importance of spending money immediately
The impact of inflation on currency
The relationship between money and happiness
#8
What is the formula to calculate the current ratio?
Current assets / Current liabilities
Total assets / Total liabilities
Net income / Total assets
Total liabilities / Total equity
#9
In finance, what does the term 'leverage' refer to?
The amount of debt a company has relative to its equity
The ability of a company to generate revenue
The process of obtaining funds for a project
The level of risk associated with an investment
#10
What is the purpose of financial ratio analysis?
To assess a company's liquidity and solvency
To determine market trends
To calculate a company's tax liability
To analyze consumer behavior
#11
What does the term 'liquidity' refer to in finance?
The ability to convert assets into cash quickly
The total amount of cash a company holds
The amount of debt a company has
The level of profitability of a company
#12
Which of the following is NOT a factor typically considered in capital budgeting decisions?
Payback period
Net present value
Opportunity cost
Dividend yield
#13
What does the 'efficient market hypothesis' suggest about financial markets?
Prices reflect all available information
Prices are determined solely by supply and demand
Investors are irrational in their decision-making
Markets are always inefficient and unpredictable
#14
What is the formula for calculating earnings per share (EPS)?
(Net income - Dividends) / Number of shares outstanding
Net income / Total assets
Total revenue / Number of shares outstanding
(Net income + Dividends) / Number of shares outstanding
#15
What does the term 'CAPM' stand for in finance?
Capital Asset Pricing Model
Cost Allocation and Performance Measurement
Capital Asset and Portfolio Management
Corporate Asset Planning Model
#16
What is the primary objective of financial risk management?
To eliminate all risks
To increase volatility
To reduce the adverse effects of risk
To take on as much risk as possible