This section consists of Twelve (12) statements. Each statement
is worth one (1) mark. You are required to indicate which of the
statements are true or false.
Statement
True
False
1.1
Finance function is limited to supply of funds to the
requirements of the organisation.
True
False
1.2
Finance function involves procurement of funds, at economic
cost, and their effective utilisation in business.
True
False
1.3
Finance function is concerned with all aspects of business
operations, where money is involved.
True
False
1.4
The financial management decisions can be classified into four
basic kinds, Investment Decisions, Financing Decisions, Liquidity
Decisions and Dividend Decisions.
True
False
1.5
Investment decision is concerned with allocating limited
resources among the competing investment alternatives.
True
False
1.6
Cash flows, at different times, carry different values.
True
False
1.7
The finance manager is required to look into the financial
implications of every decision in the firm.
True
False
1.8
It is not the function of finance manager to look to the optimal
mix of debt and equity to finance the investment needs.
True
False
1.9
It is not the job of finance manager to get involved with the
change in distribution channel decision.
True
False
1.10
Finance manager creates problems in decision-making process
where money is involved.
True
False
1.11
Market prices of shares in the stock market fall when
expectations of shareholders in respect of dividend declaration are
not fulfilled.
True
False
1.12
The objective of every company is to maximise value of the
equity shares held by its shareholders.
True
False
This section consists of Twelve (12) statements. Each statement is worth one (1) mark. You are required to indicate whic
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