Finance MCQs
Finance MCQs cover financial management, investment analysis, markets, and corporate finance. Ideal for MBA, CFA, and competitive exams like PPSC, FPSC, NTS, and SBP, they build concepts, analytical skills, speed, and accuracy through real-world scenarios.
Q: The primary objective of financial management is to
A) Increase market share
B) Maximize shareholder wealth
C) Maximize sales
D) Ensure liquidity
✅ Correct Answer: B
Explanation: Maximizing shareholder wealth aligns long-term business strategies with owner interests.
Q: The ratio that measures a company’s ability to pay short-term obligations
A) Inventory turnover
B) Price-earnings ratio
C) Current ratio
D) Debt-equity ratio
✅ Correct Answer: C
Explanation: Current ratio evaluates liquidity by comparing current assets to current liabilities.
Q: The market where new securities are issued is known as
A) Derivatives market
B) Secondary market
C) Money market
D) Primary market
✅ Correct Answer: D
Explanation: Primary markets are platforms where companies raise capital through new stock or bond issues.
Q: Capital budgeting decisions are based on
A) Long-term investments
B) Dividend policy
C) Operating profits
D) Short-term gains
✅ Correct Answer: A
Explanation: Capital budgeting evaluates long-term investments in assets and projects.
Q: The time value of money concept is best reflected by
A) Working capital
B) Discounting cash flows
C) Equity issuance
D) Budgeting
✅ Correct Answer: B
Explanation: Discounting future cash flows to present value reflects the time value of money.