Review Unit 4 - TACN3 (Kinh tế và kinh doanh quốc tế) FTU

Multiple Choice Questions 1. What is financial management primarily concerned with? - A) Managing day-to-day operational tasks - B) Managing the financial resources of an organization - C) Marketing and sales activities - D) Human resource management 2. Which of the following is NOT a major area of financial management? - A) Budgeting - B) Marketing - C) Risk management - D) Financial planning 3. Which type of risk involves the impact of external market conditions on a company's financial performance? - A) Liquidity risk - B) Credit risk - C) Market risk - D) Operational risk 4.What is the purpose of financial forecasting? - A) To increase company debt - B) To estimate future income and expenses - C) To reduce employee salaries - D) To expand the company’s marketing efforts 5. Which function of financial management focuses on maintaining the correct balance between equity and debt? - A) Cash management - B) Financial reporting - C) Financial control - D) Capital structure management 6. What is liquidity risk? - A) The risk of not having enough short-term assets to cover short-term liabilities - B) The risk of a decline in market share - C) The risk of high interest rates on loans - D) The risk of theft in a company 7. What is the purpose of financial control? - A) To maximize expenses - B) To regulate the company’s debt levels - C) To ensure that resources are used efficiently - D) To increase financial risks 8. What does a financial manager do in financial reporting? - A) Prepares reports about a company's financial situation - B) Sets sales targets - C) Oversees product development - D) Manages human resources 9. Why is budgeting important in financial management? - A) It helps in resource allocation and managing company expenditures - B) It increases operational risk - C) It only tracks the company's revenue - D) It is not important in financial management 10. What is the significance of cash management in financial management? - A) It involves managing customer relationships - B) It focuses on managing the cash flows of an organization - C) It deals with employee performance evaluations - D) It is unrelated to financial management 11. Which of the following is a primary goal of financial management? - A) Maximizing shareholder wealth - B) Minimizing employee turnover - C) Increasing customer satisfaction - D) Reducing production costs 12. What does the term 'capital budgeting' refer to? - A) The allocation of funds for daily expenses - B) The allocation of funds for long-term investments - C) The reduction of operational costs - D) The management of payroll 13. Which of the following is NOT a key function of financial management? - A) Financial planning - B) Marketing strategy development - C) Risk management - D) Cash management 14. What is the role of a financial manager in risk management? - A) Ignoring potential risks - B) Identifying and mitigating financial risks - C) Increasing company risk for higher returns - D) Focusing solely on profit without considering risks 15. In financial management, what does 'working capital' refer to? - A) The capital invested in long-term assets - B) The capital used in daily operations - C) The profit earned by the company - D) The amount of debt a company has 16. What is the main concern of operational risk in financial management? - A) Market fluctuations - B) Internal processes and external events that disrupt operations - C) Changes in credit policies - D) Loss of shareholder confidence 17. What does 'financial leverage' involve? - A) Increasing a company’s debt to finance growth - B) Reducing company expenses - C) Issuing more shares to increase equity - D) Investing in short-term securities 18. Which of the following is a method of managing financial risk? - A) Reducing employee salaries - B) Implementing compensatory controls - C) Ignoring external market trends - D) Increasing the company’s operational risk 19. Which of the following best describes 'capital structure'? - A) The mix of debt and equity a company uses to finance its operations - B) The total amount of money invested in a company - C) The company’s strategy for growth - D) The process of budgeting for short-term needs 20. Which financial management area is concerned with tracking a company’s cash inflows and outflows? - A) Budgeting - B) Cash management - C) Financial control - D) Risk management 21. What is the primary objective of financial control? - A) Increasing company liabilities - B) Ensuring efficient use of resources - C) Maximizing employee benefits - D) Minimizing cash flow 22. Which of the following is an example of a financial report? - A) Marketing plan - B) Income statement - C) Employee handbook - D) Operational manual 23. Which method is commonly used for budgeting in uncertain financial environments? - A) Static budgeting - B) Flexible budgeting - C) Incremental budgeting - D) Zero-based budgeting 24. Which type of decision-making in financial management focuses on capital allocation? - A) Investment decisions - B) Financing decisions - C) Dividend decisions - D) Working capital decisions 25. Which of the following best defines 'financial reporting'? - A) Recording daily transactions - B) Communicating financial information to stakeholders - C) Managing cash flow - D) Controlling the budget