Finance MCQs

Page No. 41

Period costs include which of the following?


aSelling expense

✓


bRaw material

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cDirect labor

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dManufacturing overhead

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View Answer Selling expense

Earning per share is computed as:


a ____________Earning After Tax_____________ No of common shares outstanding

✓


b____No of common shares outstanding___ Earning after Tax

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c___Earning before Tax____ Common shares

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dNone of Them

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Maximizing Shareholder wealth:


a Relieves the firms responsibility towards society

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bDoes not relieve the firm’s responsibility towards society

✓


cPartially relives the firm’s responsibility towards society

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dNone of Them

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Agency theory suggests that managers(the agents), particularly those of large , publically-owned firms, may have different objectives from those of the:


aWorkers

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bSubordinates

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cShareholders

✓


dEmployees

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View Answer Shareholders

The market price of a firm’s stock represents the focal judgment of all market participants as to the value of the:


aParticular market

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bParticular firm

✓


cParticular creditor

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dParticular debtor

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View Answer Particular firm

A major facet of financial management involves providing the financing necessary to support:


aLiabilities

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bDebts

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cLoans

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d Assets

✓


View Answer Assets

The Board of Directors sets company-wide policy and advices the CEO and other senior executies, who manage the company’s:


aManagerial activities

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bYear-to-Year activities

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cDay-to-Day activities

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d Financial activities

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View Answer Day-to-Day activities

Corporate governance encompasses the relationship among a company’s:


aShareholders and board of director

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bBoard of directors and senior management

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cShareholders and senior management

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dShareholders, board of directors and senior management

✓



The system by which companies are managed and controlled is known as:


aManagement System

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bStrategic System

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cCorporate Governance

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d Internal System

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View Answer Corporate Governance

All the constituencies with a stake in the fortunes of the company are termed as:


aStakeholders

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bDirectors

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cChief executives

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dSubordinates

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View Answer Stakeholders

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