1.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

2. Stakeholders include:

A. Stakeholders
B. Creditors and customs
C. Employees and suppliers
D. All of Them

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

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

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

A. Management System
B. Strategic System
C. Corporate Governance
D. Internal System

5. 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

6. ___________ is concerned with the acquisition, financing, and management of assets with some overall goal in mind.

A. Financial management
B. Profit maximization
C. Agency theory
D. Social responsibility

7. 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

8. 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

9. Annual cash dividends divided by annual earnings; or alternatively, dividends per share 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

10. Profit maximization is the maximizing a firm’s Earning:

A. Before Tax
B. After Tax
C. Both A and B
D. None of Them

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