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Finance MCQs

Boost your knowledge of business and financial concepts with our comprehensive Finance MCQs, designed for students, job seekers, and professionals preparing for competitive exams. These multiple-choice questions cover financial management, accounting principles, investment analysis, corporate finance, working capital, ratio analysis, cost of capital, stock markets, risk management, capital budgeting, and time value of money. Highly valuable for candidates appearing in PPSC, FPSC, CSS, NTS, SPSC, BPSC, KPSC, ETEA, AJKPSC, as well as banking exams, finance officer posts, and commerce-related university tests (B.Com, M.Com, MBA, ACCA).

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1 Finance MCQs

___________ is concerned with the acquisition, financing, and management of assets with an overall goal in mind.

  • Financial management
  • Profit maximization
  • Agency theory
  • Social responsibility
0 Comments
Correct Answer: A. Financial management

Explanation:

Financial management is the discipline that focuses on how a firm acquires assets, ... Read More Details

2 Finance MCQs

Financial management, while keeping an overall goal in mind, is mainly concerned with:

  • Acquisition of assets
  • Financing of assets
  • Management of assets
  • All of them
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Correct Answer: D. All of them

Explanation:

Financial management deals with making decisions that help a firm achieve its overall ... Read More Details

3 Finance MCQs

The investment decision is the most important of a firm’s three major decisions because it relates to:

  • Value creation
  • Value addition
  • Value proposition
  • Value deletion
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Correct Answer: A. Value creation

Explanation:

The investment decision is considered the most important among a firm’s financial decisions because it ... Read More Details

4 Finance MCQs

Annual cash dividends divided by annual earnings, or alternatively, dividends per share divided by earnings per share, are termed as:

  • Earnings per share ratio
  • Proposed dividend ratio
  • Dividend payout ratio
  • Expected dividend ratio
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Correct Answer: C. Dividend payout ratio

Explanation:

The dividend payout ratio measures the portion of earnings a company pays out as dividends ... Read More Details

5 Finance MCQs

Profit maximization refers to the maximization of a firm’s earnings:

  • Before Tax
  • After Tax
  • Both A and B
  • None of Them
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Correct Answer: B. After Tax

Explanation:

Profit maximization means increasing the net earnings of a firm after meeting all expenses and ... Read More Details

6 Finance MCQs

A major facet of financial management involves providing the financing necessary to support which of the following?

  • Liabilities
  • Debts
  • Loans
  • Assets
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Correct Answer: D. Assets

Explanation:

In financial management, one of the primary responsibilities is arranging funds to support a company’s ... Read More Details

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