NOUN SMS209 TMA Solution

SMS 209 [Introduction To Finance] TMA Solution.

Note- This is TMA 2
Score: 10

1 ________ is the person responsible for performing finance functions In a modern firm

Answer: Financial Manager

2 The finance function to staff and departments will be dependent upon the size and _______of the business organisation.

Answer: magnitude

3 According to Pandey (2005), summarised profit maximization limitations are the following except______

Answer: It reduces risk

4 ________ is a business concern owned by one person who often is also engaged actively in the running of the business.

Answer: Sole proprietorship

5 The market value assessment of the appropriate prices of a business is considered as one of the following except______

Answer: Projected income

6 A __________is a legal relationship between two or more persons where each person contributes something in order to carry on a lawful business with a view of profit which is to be shared in a proportion agreed upon by them.

Answer: Partnership

7 Finance decisions influence all of the following except_______

Answer: Productivity

8 The following are the essential features of a partnership except_______

Answer: Partnership is separated from the partners

9 ________shows the present statement of a business and the financial condition of an accounting entity as at a particular point in time.

Answer: Balance sheet

10 The following are some of the various types of preference shares except_____

Answer: Non convertible preference shares

11 Cash management is concerned with the managing of the following except________

Answer: None of the above

12 The following are the motives for holding cash except_______

Answer: Budgetary motive

13 ________is an artificial creature, invisible, intangible, and existing only in contemplation of law. As a legal (artificial) person, it is separate from the owners. It can enter into a contract, sue and be sued in its name.

Answer: limited liability company

14 _______allows for dividend payment to be deferred if a firm does not make adequate profit to pay such dividend.

Answer: Cumulative preference shares

15 The Memorandum of Association of a company must contain the following information except_____-

Answer: address of the company and the reason why it is in existence

16 The following are the main components of working capital management except______

Answer: Fixed income

17 The short-term liabilities of a firm includes all of the following except______

Answer: Lendings

18 The ________is the market that serves as an intermediary between fund-raisers and suppliers of capital

Answer: NSE

19 _________is the management of current or short-term assets and short-term liabilities of a firm

Answer: Working Capital

20 The Financial Manager's roles are all of the following except_____

Answer: Working Capital
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