School of Business Management

1. Investment can be defined. A) Person’s dedication to purchasing a house or flat B) Use of capital on assets to receive returns C) Usage of money on a production process of products and services D) Net additions made to the nation’s capital stocks Answer: B 2. The concept of Financial management is. A) Profit maximization B) All features of obtaining and using financial resources for company operations C) Organization of funds D) Effective Management of every company Answer: B 3. What is the primary goal of financial management? A) To minimize the risk B) To maximize the return C) To maximize the owner’s wealth D) To raise profit Answer: B 4. GST is a consumption of goods and service tax based on. A) Development B) Dividend C) Destiny D) Duration E) Destination Answer: E 5. The finance manager is accountable for. A) Earning capital assets of the company B) Effective management of a fund C) Arrangement of financial resources ...

FINANCIAL MANAGEMENT Unit:I FINANCIAL MANAGEMENT: DEFINITION, AIMS, SCOPE AND FUNCTIONS As we know finance is the lifeblood of every business, its management requires special attention. Financial management is that activity of management which is concerned with the planning, procuring and controlling of the firm’s financial resources. The scope and coverage of financial management have undergone fundamental changes over the last half a century. During 1930s and 1940s, it was concerned of raising adequate funds and maintaining liquidity and sound financial structure. This is known as the ‘Traditional Approach’ to procurement and utilization of funds required by a firm. Thus, it was regarded as an art and science of rising and spending of funds. In the words of  Paisco,  “In a modern money using economy, finance may be defined as the provision of money at the time it is wanted.” The traditional approach emphasized the acquisition of funds a...