Finance MCQs

Page No. 41

Period costs include which of the following?


aSelling expense


bRaw material


cDirect labor


dManufacturing overhead


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


c___Earning before Tax____ Common shares


dNone of Them



Maximizing Shareholder wealth:


a Relieves the firms responsibility towards society


bDoes not relieve the firm’s responsibility towards society


cPartially relives the firm’s responsibility towards society


dNone of Them



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


aWorkers


bSubordinates


cShareholders


dEmployees


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


bParticular firm


cParticular creditor


dParticular debtor


View Answer Particular firm

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


aLiabilities


bDebts


cLoans


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


bYear-to-Year activities


cDay-to-Day activities


d Financial activities


View Answer Day-to-Day activities

Corporate governance encompasses the relationship among a company’s:


aShareholders and board of director


bBoard of directors and senior management


cShareholders and senior management


dShareholders, board of directors and senior management



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


aManagement System


bStrategic System


cCorporate Governance


d Internal System


View Answer Corporate Governance

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


aStakeholders


bDirectors


cChief executives


dSubordinates


View Answer Stakeholders

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