Q. When contribution is dividend with EBIT we get
✅ Correct Answer: (A)
Operating leverage
Financial Management MCQs and Notes
Q. -------------------- refers to the risk associated with the capital structure composition
✅ Correct Answer: (A)
Financial risk
Q. The possibility that a company will have lower than anticipated profits is called ---------------------
✅ Correct Answer: (C)
Business risk
Q. Financial decision involve
✅ Correct Answer: (A)
Investment, financing and dividend decisions
Q. The job of finance manager is confined to:
✅ Correct Answer: (C)
Raising of funds and their effective utilization
Q. The appropriate objective of an enterprise is :
✅ Correct Answer: (B)
Maximization of owners wealth
Q. According to ------------- approach, cash inflow from assets should match with the cash outflow required to acquire them.
✅ Correct Answer: (B)
Hedging approach
Q. Redundant working capital means
✅ Correct Answer: (C)
Idle working capital
Q. --------------- theory says that the value of a firm will be different stages of growth
✅ Correct Answer: (D)
Traditional theory