McqMate
Chapters
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 |
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 |
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 |
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 |
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 |
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 |
7. |
In ancient and medieval India, education was mainly financed by – |
A. | Endowments |
B. | Land grants |
C. | Donations |
D. | Gifts & Bequests |
Answer» A. Endowments |
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 |
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 |
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 |
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 |
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 |
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 |
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 |
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 |
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 |
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 |
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 |
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 |
20. |
Public funds may be in the form of - |
A. | grants |
B. | subsidies |
C. | subventions |
D. | all the above |
Answer» D. all the above |
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 |
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 |
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 |
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 |
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 |
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 |
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 |
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 |
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 |
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 |
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 |
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 |
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 |
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 |
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 |
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 |
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 |
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 |
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 |
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 |
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 |
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 |
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 |
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 |
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 |
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 |
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 |
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 |
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 |
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 |
51. |
The objective of financial management is to: |
A. | Maximize earnings per share |
B. | Maximize the value of the firm’s common stock |
C. | Maximize return on investment |
D. | Maximize market share |
Answer» C. Maximize return on investment |
52. |
“Financial management is that activity of management which is concerned with the planning, procuring and controlling of the firm’s financial resources”. Who says this? |
A. | Weston and Brigham |
B. | J.F. Bradlery |
C. | Deepika& Maya Rani |
D. | Ezra Solomon |
Answer» C. Deepika& Maya Rani |
53. |
“Financial management is an area of financial decision making, harmonizing individual motives and enterprise goals”. Who define this? |
A. | J.F. Bradlery |
B. | Ezra Solomon |
C. | Deepika& Maya Rani |
D. | Weston and Brigham |
Answer» D. Weston and Brigham |
54. |
“Financial management is the area of business management devoted to a judicious use of capital and a careful selection of sources of capital in order to enable a business firm to move in the direction of reaching its goals” Who says this? |
A. | Guthman and Dougal |
B. | Weston and Brigham |
C. | J.F. Bradlery |
D. | Deepika& Maya Rai |
Answer» C. J.F. Bradlery |
55. |
“Financial management is properly viewed as an integral part of overall management rather than as a staff specially concerned with funds raising operations”. |
A. | Deepika& Maya Rai |
B. | J.F. Bradlery |
C. | Guthman and Dougal |
D. | Ezra Solomon |
Answer» C. Guthman and Dougal |
56. |
“The activity concerned with the planning, raising, controlling and administering of funds used in the business”. Who defines this? |
A. | Ezra Solomon |
B. | J.F. Bradlery |
C. | Guthman and Dougal |
D. | Weston Brigham |
Answer» D. Weston Brigham |
57. |
The most common cause of financial problems are: |
A. | Undercapitalization |
B. | Inadequate expense control |
C. | Credit terms |
D. | All of the above |
Answer» D. All of the above |
58. |
A statement that projects management’s expectations for revenues and, based on those financial expectations, allocates the use of specific resources throughout the firm is called: |
A. | Capital budget |
B. | Operating budget |
C. | Cash budget |
D. | Resource budget |
Answer» D. Resource budget |
59. |
An example of fixed asset is |
A. | Live stock |
B. | Value stock |
C. | Income stock |
D. | All of the above |
Answer» A. Live stock |
60. |
The total cost that arises when the quantity produced is increased by one unit is called |
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» B. The book value of the firm’s assets less the book value of its liabilities |
61. |
______ varies inversely with profitability. |
A. | Liquidity |
B. | Risk |
C. | Financing |
D. | Liabilities |
Answer» A. Liquidity |
62. |
_________ of a firm refers to the composition of its long term funds and its capital structure. |
A. | Capitalisation |
B. | Over-capitalistion |
C. | Under-capitalisation |
D. | Market capitalisation |
Answer» A. Capitalisation |
63. |
In finance, “working capital” means the same thing as |
A. | Total assets |
B. | Fixed assets |
C. | Current assets |
D. | Current assets minus current liabilities |
Answer» C. Current assets |
64. |
Which of the following would be consistent with a more aggressive approach to financing working capital |
A. | Financing short term needs with short term funds |
B. | Financing permanent inventory build up with long term debt |
C. | Financing seasonal needs with short term funds |
D. | Financing some long term needs with short term funds |
Answer» D. Financing some long term needs with short term funds |
65. |
Which of the following is not the responsibility of financial management? |
A. | Allocation of funds to current and capital assets |
B. | Obtaining the best mix of financing alternatives |
C. | Preparation of the firm’s accounting statements |
D. | Development of an appropriate dividend policy |
Answer» C. Preparation of the firm’s accounting statements |
66. |
Uses of funds include a(an): |
A. | Decrease in cash |
B. | Increase in any liability |
C. | Tax refund |
D. | Increased in fixed assets |
Answer» C. Tax refund |
67. |
A capital investment is one that |
A. | Has the prospect of long term benefits |
B. | Has the prospect of short term benefits |
C. | Is only undertaken by large corporations |
D. | Applies only to investment in fixed assets |
Answer» A. Has the prospect of long term benefits |
68. |
Which one of the following factors that influence educational finance? |
A. | Demand for education |
B. | Financial control |
C. | Concentration of wealth |
D. | Level of national income |
Answer» A. Demand for education |
69. |
The main problem of financing a scheme of post-secondary education that faced with serious difficulties |
A. | expansion of educational services |
B. | Removal of disparities in educational opportunities |
C. | Inadequacy of funds |
D. | None of the above |
Answer» C. Inadequacy of funds |
70. |
Modern industrial development has caused________ |
A. | Private enterprise |
B. | Economic imbalances |
C. | Social change |
D. | Economic contribution |
Answer» B. Economic imbalances |
71. |
The control of________ is a very important problem because ‘power follows the purse’ and this power may be easily misused |
A. | Economy |
B. | Population |
C. | Government |
D. | Finance |
Answer» D. Finance |
72. |
Economists believe in the law of diminishing marginal utility’. This ‘utility’ means |
A. | Ability |
B. | Efficiency |
C. | Satisfaction |
D. | Reduction |
Answer» C. Satisfaction |
73. |
Efficiency can be much improved if there is only a________ planning. |
A. | Short term and long term |
B. | Short term |
C. | Long term |
D. | None of the above |
Answer» C. Long term |
74. |
It has been decided that______ of schooling will be made available to majority of our youth |
A. | 12 years |
B. | 10 years |
C. | 5 years |
D. | None of the above |
Answer» A. 12 years |
75. |
To solve the problem of mobility of population and overcrowding in the cities the government has to adopt |
A. | Appropriate measures both at the economic and educational levels |
B. | Evolving a new finance structure in which the Central government will have to play significant role |
C. | Maintenance of a high level of national income |
D. | Financing of education |
Answer» A. Appropriate measures both at the economic and educational levels |
76. |
Which one is not educational finances needed for purposes in education? |
A. | Maintenance of normal educational services |
B. | Expansion of educational services |
C. | Expansion of disparities in educational opportunities |
D. | Planning, organising, directing and controlling the financial activities |
Answer» D. Planning, organising, directing and controlling the financial activities |
77. |
The most important method used in Ancient and medieval times in financing education is |
A. | Land grants and income yielding endowmwnts |
B. | Learning while earning |
C. | Donation from the public |
D. | Government funds |
Answer» A. Land grants and income yielding endowmwnts |
78. |
One of the following is not include in the important activities in the field of education undertaken by UNESCO |
A. | Centre for Educational Technology |
B. | Secondary School Teaching License Project |
C. | Organisation of meetings, seminars, workshops etc |
D. | Expansion of educational services |
Answer» D. Expansion of educational services |
79. |
An important problem of social change, which cannot be solved by half-harted measures is |
A. | Unemployment of youth |
B. | Population mobility |
C. | Age distribution of population |
D. | Extension of educational opportunities |
Answer» C. Age distribution of population |
80. |
Besides the provision for special education, ___________ will require additional adjustments in the policies of educational financing |
A. | Vocational education, professional training course etc |
B. | Financial resource |
C. | Distribution of funds |
D. | School fees |
Answer» A. Vocational education, professional training course etc |
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