introduction to financial management
1 : which of the following is an advantage of a sole proprietorship?
a fund raising from outside is easy
easy and inexpensive to set-up
limited personal liabilities
which of the following is not the function of finance manager?
mobilisation of funds
manipulate share price of the company
deployment of funds
control ove ruse of funds
the financial goal of a public sector firm fully ownerd by thhe govt is to
maximize the bookvalue of share
maximize the profit earned by the firm
maximize the return on equity
maximize the present value of stream of equity returns.
the objective of the financial management is to
generate the maximum wealth for its share holders
generate maximum retained earnings
generate maximum fund for the firm at the least cost
which of the following is the advantage of partnership firms
the life of the firm is perpetual
personal liabilites are limited
it is relatively free from govermental regulations as compaired to joint stock companies
the amount that can be realised by the company when it sells its business as an operating one is termed as
going concern value
market value
book value
replacement value
which of the following functions of the financial system facilitates conversion of investments in stocks,bonds,debentures etc in to money
savings function
liquidity function
risk function
policy function
which is/are the essential feature of a call money market?
maturity periods of 1-15 days
low liquidity
high agency costs
all the options
the minimum number of persons required to form a private limited company and a public limited company respectively are
2 and 5
5 and 7
2 and 7
the market value of the firm is the result of
divident decisions
working capital decisions
trade-off between cost and risk
trade-off between risk and return