One-Liner MCQs

Finance One-liner

The primary objective of financial management is to β€” Maximize shareholder wealth
The ratio that measures a company’s ability to pay short-term obligations β€” Current ratio
The market where new securities are issued is known as β€” Primary market
Capital budgeting decisions are based on β€” Long-term investments
The time value of money concept is best reflected by β€” Discounting cash flows
The cost of capital represents β€” Minimum expected return
A higher debt-equity ratio indicates β€” Greater financial risk
Preference shares typically offer β€” Fixed dividend
The main function of a financial intermediary β€” Channel funds from savers to borrowers
The most liquid asset in financial accounting is β€” Cash

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