Mcqs 11. There are ________________ basic decisions are involved while performing the financial management responsibilities. a. 1 b. 2 c. 3 d. 5 12. The company’s management has been planning to...

Mcqs

11. There are ________________ basic decisions are involved while performing the financial

management responsibilities.

a. 1
b. 2
c. 3
d. 5
12. The company’s management has been planning to launch a new project to get the competitive advantage over their competitors. According to the forecasts of their finance and budgeting department total cost they will be required for that project will be approximately Rs. 3.5 Millions. In their annual general meeting, they have decided to utilize their undistributed profits which are available. Which of the financial management the company’s management has taken in annual general meeting?
a. Investment Decision
b. Financing Decision
c. Assets Management Decision
d. Both (a) and (b)

13. The company’s cash flows in project A for the accounting year 2013 was not showing positive results. For that the management has conducted a survey to find out the possible reasons for that bad performance. The survey results show that the major reason behind the unfavorable cash flows was underutilization of their fixed assets which was because of non availability of the inventory. So by keeping in mind all these things the management has now decided to investment more amount in inventory so that their fixed assets must be utilized properly. What kind of financial management decision the company’s management has taken?
a. Investment Decision
b. Assets Management Decision
c. Financing Decision
d. Both (b) and (c)

14. In their last year’s annual general meeting, the management of the company has decided to start a new branch in Karachi so that their profitability may be increased. For that new opening they require Rs. 1.80 Million. And after thorough analysis they have decided to arrange 30% from their internal saving and remaining by issuing bonds. What kind of financial management decision the company’s management has taken?
a. Investment Decision
b. Assets Management Decision
c. Financing Decision
d. Both (a) and (b)

15. The management of the company has taken a financing decision to raised new funds only through preferred stock. Which portion of the balance sheet will be affected due to that decision?
a. Long-term portion
b. Short-term portion
c. Equity
d. Long-term debts and equit