Directions: State whether the following statement is True Or False.

Traditionally, the role of finance manager was restricted to acquisition and efficient allocation of funds.

Directions: State whether the following statement is True Or False.

Main objective of financial management is maximization of profits.

Directions: State whether the following statement is True Or False.

Efficient management of every business is closely linked with efficient management of its finance.

Directions: State whether the following statement is True Or False.

Traditional approach of financial management restricted its scope to arrangement of funds.

Directions: State whether the following statement is True Or False.

A finance manager’s concern must be to maintain liquidity rather than profitability.

Directions: State whether the following statement is True Or False.

Cash flows of two years in absolute terms are comparable.

Directions: State whether the following statement is True Or False.

Compounding technique and discounting techniques refer to one and the same things.

Directions: State whether the following statement is True Or False.

Annuity tables can be used for all kinds of cash flows.

Directions: State whether the following statement is True Or False.

With infinitely increasing time periods and interest rates, annuity discount factor increases proportionately.

Directions: State whether the following statement is True Or False.

Perpetuity and annuity are two different concepts.

Directions: State whether the following statement is True Or False.

In case of compounding, the basic amount on which interest is received, remains constant.

Directions: State whether each of the following statements is True Or False.

The total interest received will be same irrespective of the fact, whether compounding is done yearly or quarterly.

Directions: State whether the following statement is True Or False. The term risk and uncertainty are same in meanings.

Directions: State whether the following statement is True Or False.

It is easier to calculate the present value of uneven cash flows than calculating present value of annuity over n years.

Directions: State whether the following statement is True Or False.

In case of uncertainty, the firm can anticipate the future loss.

Directions: State whether the following statement is True Or False.

There is a direct relationship between risk and return.

Directions: State whether the following statement is True Or False.

The accountant’s approach of profit is particularly suitable while analyzing financial results for the share holders and tax authorities.

Directions: State whether the following statement is True Or False.

A sole proprietorship has no legal existence apart from the proprietor.

Directions: State whether the following statement is True Or False.

Registration of partnership firm is compulsory.

Directions: State whether the following statement is True Or False.

Financial risk refers to the variability in operating profit due to change in sales.

Directions: State whether the following statement is True Or False.

A partnership firm enjoys an entity distinct from its partners.

Directions: State whether the following statement is True Or False.

The liability of the sole proprietorship is limited.

Directions: State whether the following statement is True Or False.

There is no statutory limit as to maximum number of members in a public company.

Directions: State whether the following statement is True Or False.

The members of a company can not have unlimited liability.

Directions: State whether the following statement is True Or False.

There is no statutory limit as to maximum number of members in a private company.