Financial Management Quiz

What is the primary role of financial management in a business?

• To increase the number of employees

• To manage and allocate financial resources effectively

• To design marketing strategies

• To develop new products

Which of the following is NOT an objective of financial management?

• Proper utilization of funds

• Profit maximization

• Ensuring liquidity

• Increasing employee turnover

Why is financial management crucial for businesses like Zomato during an IPO?

• To increase the number of products

• To hire more employees

• To reduce the number of shareholders

• To maintain transparency and comply with regulations

What is a key function of financial management?

• Hiring new staff

• Financial planning and control

• Designing office spaces

• Developing new software

Which decision involves determining where to invest funds for maximum returns?

• Investment decisions

• Dividend decisions

• Financing decisions

• Liquidity decisions

What principle suggests that higher returns come with higher risks?

• Principle of diversification

• Principle of risk-return tradeoff

• Principle of time value of money

• Principle of matching

Which tool is used for financial forecasting and decision-making?

• Graphic design software

• Budget planning software

• Customer relationship management tools

• Social media platforms

What is a challenge faced by financial management?

• Consistent currency values

• Decreasing inflation

• Rising cost of capital

• Stable market conditions

How does personal financial management benefit individuals?

• By increasing their monthly income

• By eliminating the need for budgeting

• By helping them manage expenses and investments

• By reducing their work hours

Which modern trend in financial management involves using AI?

• Paper-based transactions

• AI in financial forecasting

• Manual bookkeeping

• Traditional accounting