Question: 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

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

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