PR31504财务管理期中考 GPT预测18题

Mock Multiple Choice Questions for Financial Management

What is the primary goal of financial management?
- a) Increase profits
- b) Maximize shareholder wealth
- c) Lower company risk
- d) Increase fixed assets
- Answer: b
Which of the following decisions is an example of an investment decision?
- a) Issuing new equity
- b) Deciding on the dividend policy
- c) Acquiring a new company
- d) Repurchasing shares
- Answer: c
What issue does agency theory examine?
- a) The relationship between stockholders and bondholders
- b) The relationship between the owners of the firm and the managers of the firm
- c) The role of financial markets in economic development
- d) The impact of taxation on corporate profits
- Answer: b
Which of the following is NOT a responsibility of the board of directors?
- a) Advising the CEO
- b) Setting the company’s strategic direction
- c) Managing day-to-day operations
- d) Reviewing and approving significant investments
- Answer: c

Which form of business organization has the advantage of limited liability for its owners?
- a) Sole proprietorship
- b) General partnership
- c) Corporation
- d) Limited partnership
- Answer: c
What is a major drawback of a sole proprietorship?
- a) High organizational costs
- b) Double taxation
- c) Unlimited liability
- d) Difficulty in transferring ownership
- Answer: c
Which document is necessary to form a corporation?
- a) Partnership agreement
- b) Articles of incorporation
- c) Operating agreement
- d) Shareholder agreement
- Answer: b
In a limited partnership, who has unlimited liability?
- a) Limited partners
- b) General partners
- c) Silent partners
- d) Equity partners
- Answer: b

If you invest $1,000 today at an annual interest rate of 5%, how much will you have in 5 years?
- a) $1,250
- b) $1,276
- c) $1,553
- d) $1,628
- Answer: d
Which of the following represents an ordinary annuity?
- a) Payments made at the beginning of each period
- b) Payments made at the end of each period
- c) A single lump sum payment
- d) Irregular payments made over time
- Answer: b
What is the present value of $10,000 to be received in 10 years if the discount rate is 8%?
- a) $4,630
- b) $6,710
- c) $9,260
- d) $10,800
- Answer: a
What type of interest calculation involves earning interest on both the initial principal and the accumulated interest from previous periods?
- a) Simple interest
- b) Compound interest
- c) Continuous interest
- d) Fixed interest
- Answer: b

Which financial statement shows a company’s assets, liabilities, and equity at a specific point in time?
- a) Income statement
- b) Balance sheet
- c) Statement of cash flows
- d) Statement of retained earnings
- Answer: b
Which ratio measures a company’s ability to pay off its short-term liabilities with its most liquid assets?
- a) Current ratio
- b) Quick ratio
- c) Debt-to-equity ratio
- d) Return on assets
- Answer: b
A company has total assets of $500,000 and total liabilities of $300,000. What is its debt-to-assets ratio?
- a) 0.40
- b) 0.50
- c) 0.60
- d) 0.70
- Answer: c
Which profitability ratio measures the amount of net income earned with each dollar of sales?
- a) Return on assets
- b) Return on equity
- c) Gross profit margin
- d) Net profit margin
- Answer: d
If a company’s current ratio is 2.5, what does this indicate?
- a) The company is highly leveraged.
- b) The company has good long-term financial health.
- c) The company can comfortably meet its short-term obligations.
- d) The company is not efficiently utilizing its assets.
- Answer: c
What financial metric is used to evaluate the efficiency with which a company is using its assets to generate sales?
- a) Profit margin
- b) Inventory turnover
- c) Total asset turnover
- d) Earnings per share
- Answer: c