". VdoTips: Financial Management Practice Set



Financial Management Practice Set

76. Dividend policy of a firm affects both the long time financing and----------------wealth
(A) Owners
(B) Creditors
(C) Debtor
(D) Shareholders
77. ----------------------- is the distribution of the profits of a company among its shareholders
(A) Shares
(B) Interest
(C) Dividend
(D) Commission
78. The market value of the firm is the result of ----
(A) dividend decisions.
(B) working capital decisions.
(C) capital budgeting decisions.
(D) trade-off between cost and risk.
79. Which of the following is a function of the finance manager?
(A) Mobilizing funds.
(B) Risk returns trade off.
(C) Deployment of funds.
(D) Control over the uses of funds.
80. Financial risk arises due to the
(A) variability of returns due to fluctuations in the securities market.
(B) changes in prevailing interest rates in the market.
(C) leverage used by the company.
(D) liquidity of the assets of the company.