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1. Question: What is the primary goal of financial management in a business?  A) Profit maximization  B) Sales maximization  C) Share price maximization  D) Wealth maximization Reference: Brigham, E. F., & Houston, J. F. (2019). Fundamentals of Financial Management (15th ed.). Cengage Learning. 2. Question: Which financial statement provides an overview of a company's financial position at a specific point in time?  A) Income statement  B) Balance sheet  C) Cash flow statement  D) Statement of retained earnings Reference: Gibson, C. H. (2019). Financial Reporting and Analysis: Using Financial Accounting Information (14th ed.). Cengage Learning. 3. Question: What does the term "Working Capital" represent in financial management?  A) Long-term debt  B) Current assets minus current liabilities  C) Net income  D) Gross profit Reference: Ross, S. A., Westerfield, R. W., & Jordan, B. D. (2018). Essentials of Corporate Finance (9th ed.). McGraw-Hill Education. 4. Question: Which of the following is a measure of a company's profitability over a specific period?  A) Return on assets (ROA)  B) Current ratio  C) Debt to equity ratio  D) Acid-test ratio Reference: Brealey, R. A., Myers, S. C., & Allen, F. (2017). Principles of Corporate Finance (12th ed.). McGraw-Hill Education.

5. Question: What is the purpose of the Weighted Average Cost of Capital (WACC) in financial decision-making?  A) Measure of profitability  B) Discount rate for NPV calculations  C) Liquidity ratio  D) Asset turnover ratio Reference: Ross, S. A., Westerfield, R. W., & Jordan, B. D. (2018). Essentials of Corporate Finance (9th ed.). McGraw-Hill Education. 6. Question: In the context of bonds, what does the term "coupon rate" refer to?  A) The interest rate paid to bondholders  B) The maturity date of the bond  C) The face value of the bond  D) The market price of the bond Reference: Gitman, L. J., & Zutter, C. J. (2019). Principles of Managerial Finance (15th ed.). Pearson. 7. Question: Which financial ratio measures a company's ability to meet its short-term obligations?  A) Debt to equity ratio  B) Quick ratio  C) Return on investment (ROI)  D) Earnings per share (EPS) Reference: Ross, S. A., Westerfield, R. W., & Jordan, B. D. (2018). Essentials of Corporate Finance (9th ed.). McGraw-Hill Education. 8. Question: What is the purpose of financial leverage in business finance?  A) Increase profitability  B) Reduce risk  C) Minimize taxes  D) Enhance return on equity Reference: Brealey, R. A., Myers, S. C., & Allen, F. (2017). Principles of Corporate Finance (12th ed.). McGraw-Hill Education. 9. Question: Which financial market facilitates the trading of financial instruments with maturities of one year or less?

 A) Money market  B) Capital market  C) Derivatives market  D) Foreign exchange market Reference: Mishkin, F. S., & Eakins, S. G. (2018). Financial Markets and Institutions (9th ed.). Pearson. 10. Question: What does the term "opportunity cost" mean in the context of capital budgeting?  A) The cost of financing a project  B) The cost of forgoing the next best alternative  C) The cost of labor for a project  D) The cost of raw materials for a project javaCopy code **Reference:** Ross, S. A., Westerfield, R. W., & Jordan, B. D. (2018). Essentials of Corporate Finance (9th ed.). McGraw-Hill Education. 11. Question: Which financial ratio measures the efficiency of a company's inventory management?  A) Inventory turnover ratio  B) Return on equity (ROE)  C) Earnings before interest and taxes (EBIT)  D) Debt ratio Reference: Gitman, L. J., & Zutter, C. J. (2019). Principles of Managerial Finance (15th ed.). Pearson. 12. Question: In valuation, what does the term "discount rate" represent?  A) Future cash flows  B) Present value of money  C) Expected rate of return  D) Risk-free rate Reference: Pratt, S. P., & Grabowski, R. J. (2018). Cost of Capital: Applications and Examples (5th ed.). John Wiley & Sons. 13. Question: Which financial statement reports a company's revenues and expenses over a specific period?  A) Balance sheet  B) Cash flow statement

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 C) Income statement  D) Statement of retained earnings Reference: Gibson, C. H. (2019). Financial Reporting and Analysis: Using Financial Accounting Information (14th ed.). Cengage Learning. 14. Question: What is the purpose of a hedge fund in investment management?  A) Provide loans to companies  B) Pool funds from multiple investors for aggressive investment strategies  C) Facilitate foreign exchange transactions  D) Manage the day-to-day operations of a business Reference: Lo, A. W. (2018). Hedge Funds: Structure, Strategies, and Performance (2nd ed.). Oxford University Press. 15. Question: How is the Return on Investment (ROI) calculated?  A) Net profit divided by total assets  B) Net income divided by shareholders' equity  C) Profit margin multiplied by asset turnover  D) Net gain or loss divided by the initial investment cost Reference: Brigham, E. F., & Houston, J. F. (2019). Fundamentals of Financial Management (15th ed.). Cengage Learning. 16. Question: What does the term "liquidity" refer to in financial management?  A) Ability to meet short-term obligations  B) Ability to generate profits  C) Level of debt in a company  D) Efficiency of inventory turnover Reference: Ross, S. A., Westerfield, R. W., & Jordan, B.