1631. Having some overall goal in mind, financial management is concerned with ___________.

A. Acquisition of assets
B. Financing of assets
C. management of assets
D. all of them *

1632. The investment decision is the most important of the firm’s three major decisions , when it comes to _________.

A. Value creation *
B. Value addition
C. Value proposition
D. Value deletion

1633. Annual cash dividends divided by annual earnings; or alternatively, dividends per shared divided by earning per share is termed as _________.

A. Earning per share ratio
B. Proposed dividend ratio
C. Dividend payout ratio *
D. Expected dividend ratio

1634. Profit maximization is the maximizing a firm’s earning________.

A. Before tax
B. After tax *
C. Both A and B
D. None of them

1635. An individual authorized by another person, called the principle, to act on the latter’s on behalf is known as an/a_______.

A. Agent *
B. Servant
C. Subordinate
D. Assistant

1636. Stakeholders include ___________.

A. Stakeholders
B. Creditors and customers
C. Employees and suppliers
D. All of them *

1637. All the constituencies with a stake in the fortunes of the company are termed as ________.

A. Stakeholders *
B. Directors
C. Chief executives
D. Subordinates

1638. The system by which companies are managed and controlled is known as __________.

A. management system
B. Strategic system
C. Corporate governance *
D. Internal system

1639. Corporate governance encompasses the relationship among a company’s _______.

A. Shareholders and board of director
B. Board of directors and senior management
C. Shareholders and senior management
D. Shareholders, board of directors and senior management *

1640. Cost of capital is equal to required return rate on equity in case if investors are only ________?

A. Valuation manager
B. Common stockholders *
C. Asset seller
D. Equity seller