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Chapter:

80+ Financial Management Solved MCQs

in Educational Planning and Management

These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Education (CBCS) .

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Chapter: Financial Management
1.

The objective of financial management is –

A. To ensure optimum utilization of funds
B. To ensure human capital development
C. To ensure safety on investment
D. All the above
Answer» D. All the above
discuss
2.

Which of the following is not a source of income of educational institutions?

A. Land grants and endowments
B. Government grants
C. Loan from banks
D. Student fees
Answer» C. Loan from banks
discuss
3.

Financial management is concernrd with –

A. profit and loss
B. procurement and utilization of funds
C. loan from banks
D. sound investment
Answer» B. procurement and utilization of funds
discuss
4.

Educational finance aims at seeing that the money for education is spent most -

A. judiciously & productively
B. appropriately & adequately
C. effectively & efficiently
D. none of the above
Answer» A. judiciously & productively
discuss
5.

The main source of income of educational institutions is –

A. Student fees
B. Gifts & donations
C. Government funds
D. All the above
Answer» C. Government funds
discuss
6.

Public funds include money recieved from –

A. central government
B. state government
C. local government
D. All the above
Answer» D. All the above
discuss
7.

In ancient and medieval India, education was mainly financed by –

A. Endowments
B. Land grants
C. Donations
D. Gifts & Bequests
Answer» A. Endowments
discuss
8.

Educational cess levied by local bodies may be in the form of a –

A. land revenue tax
B. tax on houses/building tax
C. both of the above
D. none of the above
Answer» C. both of the above
discuss
9.

The biggest problem in educational finance is –

A. Maintenance of normal services
B. constitutional provisions
C. political factors
D. system of administration
Answer» A. Maintenance of normal services
discuss
10.

Which is not a major factor affecting financial allocations?

A. Economic development
B. Socio-cultural environment
C. Expansion of educational facilities
D. Developmental Policies
Answer» C. Expansion of educational facilities
discuss
11.

“Financial Management is an area of financial decision-making, harmonising individual motives and enterprise goals”. Who said this?

A. Weston Brigham
B. Howard & Upton
C. Solomon
D. Taylor
Answer» A. Weston Brigham
discuss
12.

“Financial Management is the application of general managerial principles to the area of financial decision-making”. Who said this?

A. Weston Brigham
B. Howard & Upton
C. Solomon
D. Taylor
Answer» B. Howard & Upton
discuss
13.

“Financial Management is concerned with the efficient use of an important economic resource, namely, capital funds”. Who said this?

A. Weston Brigham
B. Howard & Upton
C. Solomon
D. Taylor
Answer» C. Solomon
discuss
14.

“Financial Management is concerned with the procurement of funds and their effective utilization in business”. Who said this?

A. SC Kuchhal
B. S.N Maheshwari
C. S.K Mangal
D. Choudhury
Answer» A. SC Kuchhal
discuss
15.

“Financial Management is concerned with raising finances and their effective utilization towards achieving organisational goals”. Who said this?

A. SC Kuchhal
B. S.N Maheshwari
C. S.K Mangal
D. Choudhury
Answer» B. S.N Maheshwari
discuss
16.

Educational needs are related to the -

A. size of the population
B. social change
C. economic and political development
D. all the above
Answer» D. all the above
discuss
17.

Sound financial planning includes –

A. decisions about revenue, cost and economy
B. budget administration
C. financial relationships among various agencies
D. all the above
Answer» D. all the above
discuss
18.

The roots of educational finance are found in basic disciplines like -

A. statistics
B. economics and political science
C. law and taxation
D. all the above
Answer» D. all the above
discuss
19.

The sources of income for education may be broadly classified into -

A. Public and Private funds
B. Government and Non – government funds
C. Both of the above
D. None of the above
Answer» A. Public and Private funds
discuss
20.

Public funds may be in the form of -

A. grants
B. subsidies
C. subventions
D. all the above
Answer» D. all the above
discuss
21.

The various kinds of fees charged to students include -

A. tuition fee
B. library and laboratory fee
C. magazine and games fee
D. all the above
Answer» D. all the above
discuss (1)
22.

Sums of money where the principles are maintained intact and only the income from the interest on the principal are consumed is called -

A. Land grants
B. Bequests
C. Endowments
D. Philantropic trust
Answer» C. Endowments
discuss
23.

The essential aspects of educational finance include changes in -

A. targets and policies
B. procedures
C. administration
D. all the above
Answer» D. all the above
discuss
24.

Some of the main problems faced in financing education are –

A. expanding educational facilities
B. expanding educational services
C. lack of priorities
D. all the above
Answer» D. all the above
discuss
25.

Which is a major factor affecting financial allocations?

A. Unequal distribution of wealth
B. Population mobility
C. Constitutional Provisions
D. Low level of national income
Answer» C. Constitutional Provisions
discuss
26.

The main elements of traditional approach to financial management are -

A. Institutional sources of finance
B. Issue of financial devices to collect refunds from capital market
C. Accounting and legal relationship between source of finance and business
D. all the above
Answer» D. all the above
discuss
27.

The main elements of modern approach to financial management are -

A. evaluation of alternative fund utilization
B. capital budgeting
C. financial planning
D. all the above
Answer» D. all the above
discuss
28.

The critical decisions to be taken under modern approach to financial management are -

A. investment decision
B. financing decision
C. dividend decision
D. all the above
Answer» D. all the above
discuss
29.

Which is a function of financial management?

A. tax planning
B. management of provident funds
C. securities and social insurance funds
D. all the above
Answer» D. all the above
discuss
30.

Which is not a scope of financial management?

A. financial investment
B. financial control
C. financial supervision
D. financial planning
Answer» A. financial investment
discuss
31.

The nature of financial management is concerned with -

A. functions and goals of the institution
B. procedural aspects
C. relation with other subsystems
D. all the above
Answer» D. all the above
discuss
32.

Financial management essentially involves -

A. risk-return trade off
B. types of assets
C. investment decisions
D. all the above
Answer» D. all the above
discuss
33.

Financial management affects the -

A. survival of the firm
B. growth of the firm
C. vitality of the firm
D. survival, growth and vitality of the firm
Answer» D. survival, growth and vitality of the firm
discuss
34.

Financial management is needed due to –

A. acquisition and proper use of funds
B. improve profitability
C. increase value of the firm/institution
D. all the above
Answer» D. all the above
discuss
35.

Proper allocation and utilization of funds leads to -

A. improvement of operational efficiency
B. improvement of profitability
C. increase value of the firm/institution
D. all the above
Answer» D. all the above
discuss
36.

Improving profitability depends on -

A. promoting savings
B. proper and effective use of funds
C. increasing value of the firm
D. acquisition of funds
Answer» B. proper and effective use of funds
discuss
37.

The ultimate aim of any business concern is -

A. increase the wealth of the investors
B. maximize the wealth of the firm
C. increase the value of the firm
D. optimize the profit of the firm
Answer» C. increase the value of the firm
discuss
38.

Acquisition of funds is determined by certain features such as -

A. philosophy of the institute
B. vision and goals of the institute
C. competitive environment
D. all the above
Answer» D. all the above
discuss
39.

Factors affecting allotment of funds include -

A. availability of funds
B. needs of various departments or services
C. nature of activity undertaken
D. all the above
Answer» D. all the above
discuss
40.

Other sources of getting money to finance education include -

A. donations, bequests and gifts
B. interests on bank balances and securities
C. rent from buildings
D. all the above
Answer» D. all the above
discuss
41.

Which one of the following is the main source of income for educational organisation?

A. Fees from the students
B. Endowments and land grants
C. Donations
D. All of the above
Answer» D. All of the above
discuss
42.

Major factors that influences educational finance is

A. Removal of disparities in educational opportunities
B. Maintenance of normal service
C. Demand for education
D. Unemployment of youth
Answer» A. Removal of disparities in educational opportunities
discuss
43.

“Finance is the art and science of managing money”.Who says this?

A. Lawrence J. Gitman
B. Taylor
C. Hawthorne
D. Elton
Answer» A. Lawrence J. Gitman
discuss
44.

Which one of the following is not the objective of financial management?

A. To ensure human capital development
B. To ensure adequate returns to the shareholders
C. To ensure optimum fund utilisation
D. To ensure safety on investment
Answer» A. To ensure human capital development
discuss
45.

Financial management is concerned with

A. Profit and loss of the organisation
B. Procurement and utilisation of funds
C. Loan from banks
D. Exchange of money with other countries
Answer» B. Procurement and utilisation of funds
discuss
46.

Which one of the following is not a source of income for educational organisation?

A. Land grants and endowments
B. Government funds
C. Loan from State Bank of India
D. Fees from the students
Answer» C. Loan from State Bank of India
discuss
47.

The success of any business organisation depends on the

A. Knowledge of the workers
B. Provision of sufficient money
C. Geographical area
D. Road contributions
Answer» A. Knowledge of the workers
discuss
48.

The main source of income of the educational institution is received from

A. The Village Community
B. The United Nation
C. The State Government
D. The fee of students
Answer» D. The fee of students
discuss
49.

Under centralised management, authority and powers rest in a/an

A. Local body
B. Autonomous body
C. Central body
D. None of the above
Answer» C. Central body
discuss
50.

“Shareholder wealth” in a firm is represented by:

A. The number of people employed in the firm
B. The book value of the firm’s assets less the book value of its liabilities
C. The amount of salary paid to its employees
D. The market price per share of the firm’s common stock
Answer» D. The market price per share of the firm’s common stock
discuss

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