Question

What is the key objective of the financial manager in using funds effectively?

a.

Generating income equal to cost of capital

b.

Generating income more than cost of capital

c.

Minimizing income

d.

Maximizing income

Answer: (b).Generating income more than cost of capital Explanation:The key objective of the financial manager in using funds effectively is to generate income more than the cost of capital at which funds are procured.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. What is the key objective of the financial manager in using funds effectively?

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. What specialized knowledge and experience are required for decisions on employment of funds in financial management?

Q. What areas should the financial manager update their knowledge and understanding on in financial management?

Q. How are the decisions taken by the financial manager in Financial Management broadly classified?

Q. What does the scope of Financial Management involve?

Q. How has the scope of Financial Management expanded with the globalization of companies?

Q. What has broadened the scope and objectives of financial management in the last decade or two?

Q. How can the scope of Financial Management be analyzed in the present expansion of the capital market?

Q. In the Traditional Phase, what financial decisions were considered necessary and important?

Q. In the Modern Phase, what critical issues does financial management encompass for the maximization of wealth?

Q. What are the areas covered by the scope and objectives of financial management?

Q. What is the ultimate objective of financial management?

Q. How does financial management contribute to the value of the firm in a capital investment decision?

Q. What questions arise in general when considering any investment in a business proposal or project?

Q. How is financial management related to corporate management?

Q. What is the main focus of financial accounting?

Q. What three aspects must a financial manager have thorough knowledge, understanding, expertise, and exposure in?

Q. In a large public limited company or a multinational company, what makes the roles and responsibilities of a financial manager more emerging and demanding?

Q. What is the primary goal of a financial manager in a large public limited company or a multinational company?

Q. How is Financial Management related to other disciplines or areas of management functions?

Q. What is the role of financial accounting in Financial Management?

Recommended Subjects

Are you eager to expand your knowledge beyond IC 89 Management Accounting? We've handpicked a range of related categories that you might find intriguing.

Click on the categories below to discover a wealth of MCQs and enrich your understanding of various subjects. Happy exploring!