Question: Business need to hold cash to achieve the following motives except Answer:Special motive Question: Compare with cash management the management of receivables is not very vital to the business as a going concern Answer:False Question: Working capital management refers to the management of Answer: short term assets and short term liabilities Question: In a producing enterprise imventories comprise Answer:raw materials work in progress and finished products Question: Which of the following represents a true components of short term assets Answer: inventories loans and advances debtors investments and cash and bank balances Question: Which of this statement is not correct of inventories Answer:inventories need to be managed properly to avoid unnecessary cost Question: The practice of holding cash for investing in profit making opportunities as and when the need arises is known as Answer: Speculative motive Question: Inventory management is a tool to aid excessive and inadequate levels of inventories and maintain sufficient inventory for the smooth operations of the enterprise in terms of production and sales output Answer:False Question: Which of the following is not an essential features of a partnership Answer:Partnership is separated from the partners Question: Which is a feature of a partnership business in Lagos state Answer:Setting up cost is low and it is easy to form Question: There are four main forms of business organizations the Sole proprietorship Cooperative Partnership and Limited Liability Company Answer:False Question: A company is legally formed by meeting the conditions stipulated in the Answer:Companies and Allied Matters Act Decree 1990 Question: The promoters of a limited liability company must apply for registration at the Corporate Affairs Commission together with both a Answer:Memorandum and Articles of Association Question: The Memorandum of Association contains the following except Answer:appointment of directors Question: Which is not a feature of the Articles of Association Answer:address of the registered office of the company Question: In company formation the power to issues a Certificate of Incorporation is vested on the Answer:Registrar General Question: Which is not a features of a company Answer:External audit is not compulsory Question: Which is not a reaseon for planning Answer:planning creates a gap between objective and achievement Question: According to Christy and Roden 1973 financial management itself requires the simultaneous consideration of following financial decisions except Answer:payment to as dividends to shareholders Question: Which is not an example of current liabilities Answer:Common Stock Question: Which is an example of current liabilities Answer:Stock Finance Question: Lease financing is an important source of short term funds It may be used as a source of financing company expansion or for modernization of the productive apparatus of the firm Answer:False Question: Which is not a type of lease finance Answer:Strategic lease Question: Which of the following is not a step that could be used in the forecasting process Answer:Estimation of model EM Question: Christy and Roden 1973 defines finance as Answer:the study of the nature and use of the means of payment Question: Which of the following involves graphing the variables to identify the pattern for a given number of years Answer:Model identification MI Question: Planning helps to identify the output desire and the inputs required to achieve an objective Answer:False Question: Which of the following statement is not correct of cash management Answer:B: cash management is concerned with the managing of cash balances held by the enterprise at the bank a point of time Question: Which of these statements is not correct of an effective inventory management Answer:C: An effective inventory management ensures the maintenance of sufficient stocks of raw materials in long supply period and anticipate constant in price level Question: Which statement is not correct Answer:A: for a partnership to exist the trade or the profession must be carried on together jointly for the benefit of all the partners and their family Question: Real markets are for physical or assets Answer:tangible Question: shareholders receive dividend at a fixed rate and they enjoy a priority over ordinary shareholders Answer:Preference Question: and profitability affect investment in current assets in business organizations Answer:Liquidity Question: Investment decisions involve capital expenditures which are referred to as capital decision Answer:budgeting Question: can be likened to a lubricant Answer:Finance Question: Internal Finance known to as equity fundfinance is referred to as Answer:equity Question: Public Issue may be made to attract new and the existing shareholders to contribute equity Answer:capital Question: A firmbusiness can sell to acquire equity funds Answer:shares Question: may be defined as the provision of money at the time it is required Answer:Finance Question: Political Risk and Finance are risks of as the result of unforeseen intervention by governments Answer:losses Question: Financial Manager is the person responsible for performing functions Answer:finance Question: is otherwise known as profit and loss account Answer:Income statement Question: mechanism system is a vital organ of a market economy Answer:Price Question: Risk is the expected of the income flow Answer:variability Question: Profit function is one of the acquired roles of the Finance Manager Answer:planning Question: Balance sheet shows the present of a business Answer:statement Question: Pandey stated that the basis of the theory of financial management Answer:2005 Question: Fixed costs remain constant while costs change in direct proportion to changes in volume of goods Answer:variable Question: Financial statement is also used for future plans of the Answer:enterprise Question: Financing Activities consist of cash flows relating to and owners equity Answer:A liability