A Series
What is the primary goal of financial management?
A) Profit Maximization
B) Wealth Maximization
C) Revenue Maximization
D) Cost Reduction
B) Wealth Maximization
Which financial instrument represents ownership in a company?
A) Bonds
B) Equity Shares
C) Debentures
D) Fixed Deposits
B) Equity Shares
What is another term for Working Capital?
A) Current Assets - Current Liabilities
B) Fixed Assets - Fixed Liabilities
C) Total Assets - Total Liabilities
D) Cash Flow - Expenses
A) Current Assets - Current Liabilities
Which organization regulates the stock market in India?
A) RBI
B) SEBI
C) IRDAI
D) NITI Aayog
B) SEBI
What is the full form of IPO?
A) Initial Public Offering
B) Investment Policy Offering
C) International Private Order
D) Indian Public Offering
A) Initial Public Offering
The financial market where newly issued securities are sold is called:
A) Secondary Market
B) Primary Market
C) Money Market
D) Forex Market
B) Primary Market
Which of the following is a short-term source of finance?
A) Equity Shares
B) Debentures
C) Bank Overdraft
D) Preference Shares
C) Bank Overdraft
What does CAGR stand for?
A) Compound Annual Growth Rate
B) Corporate Accounting Growth Ratio
C) Cash Asset Growth Ratio
D) Credit Average Growth Rate
A) Compound Annual Growth Rate
Which type of risk affects all businesses in an economy?
A) Systematic Risk
B) Unsystematic Risk
C) Credit Risk
D) Operational Risk
A) Systematic Risk
What is the term for an investor who buys shares and holds them for a long period?
A) Trader
B) Speculator
C) Long-term Investor
D) Arbitrager
C) Long-term Investor
Which financial statement shows a company's revenues and expenses?
A) Balance Sheet
B) Cash Flow Statement
C) Income Statement
D) Audit Report
C) Income Statement
What does EPS stand for in finance?
A) Earnings Per Share
B) Equity Per Share
C) Economic Profit System
D) Earning Price Strategy
A) Earnings Per Share
What is the full form of NAV in mutual funds?
A) Net Asset Value
B) Nominal Account Value
C) National Annual Value
D) Net Account Volume
A) Net Asset Value
What does ROE stand for in finance?
A) Return on Equity
B) Return on Earnings
C) Risk of Equity
D) Rate of Exchange
A) Return on Equity
Which of the following is a capital budgeting technique?
A) Payback Period
B) Quick Ratio
C) Debt-Equity Ratio
D) Working Capital Cycle
A) Payback Period
The process of spreading the cost of a fixed asset over its useful life is called:
A) Depreciation
B) Amortization
C) Liquidity
D) Leverage
A) Depreciation
Which of the following is not a source of finance?
A) Equity Capital
B) Debentures
C) Reserves & Surplus
D) Depreciation
D) Depreciation
What is the interest earned on both the initial principal and accumulated interest called?
A) Simple Interest
B) Compound Interest
C) Fixed Interest
D) Floating Interest
B) Compound Interest
What is the minimum paid-up capital required for a public limited company in India?
A) ₹1 Lakh
B) ₹5 Lakh
C) ₹10 Lakh
D) ₹20 Lakh
B) ₹5 Lakh
What is the formula for calculating Net Profit?
A) Total Revenue - Total Expenses
B) Gross Profit - Operating Expenses
C) Sales - Cost of Goods Sold
D) Assets - Liabilities
A) Total Revenue - Total Expenses
Which of the following is not a money market instrument?
A) Treasury Bills
B) Commercial Paper
C) Equity Shares
D) Certificate of Deposit
C) Equity Shares
Which of the following is an example of a fixed asset?
A) Cash
B) Inventory
C) Land and Building
D) Accounts Receivable
C) Land and Building
A company’s debt-equity ratio is used to measure its:
A) Liquidity
B) Profitability
C) Leverage
D) Market Value
C) Leverage
Which ratio measures a company's ability to pay short-term obligations?
A) Profitability Ratio
B) Solvency Ratio
C) Liquidity Ratio
D) Turnover Ratio
C) Liquidity Ratio
Which financial statement shows the financial position of a company at a specific point in time?
A) Income Statement
B) Balance Sheet
C) Cash Flow Statement
D) Budget Statement
B) Balance Sheet