MB0045 Financial Management | Unit 1 Financial Management | Self Assessment Questions Fill in the blanks: 1. What has changed the profile of Indian finance managers? 2. Finance management is considered a branch of knowledge with focus on the __________.3. Under perfect competition, allocation of resources shall be based on the goal of ________. 4. _______ is based on cash flows. 5. _________ consider time value of money. 6. What are the main goals of financial management? 7. ________ lead to investment in real assets. 8. _____ relate to the acquisition of funds at the least cost. 9. Formulation of inventory policy is an important element of _______. 10. Obtaining finance is an important function of _________. 11. What are the two critical issues to be considered under investment decisions? 12. Define rate of return. 13. The most important decision made by a finance manager is ________. Answers to Self Assessment Questions 1. Liberalisation and globalisation of Indian economy 2.procurement of funds 3. Profit maximisation. 4. Wealth maximisation 5. Wealth maximisation 6. Profit Maximisation and Wealth Maximisation 7. Investment decisions. 8. Financing decisions 9. Liquidity 10. Treasurers 11. The two critical issues are – evaluation of expected profitability of the new investment rate of return required on the project 12. Rate of return is normally defined as the hurdle rate or cut-off rate or opportunity cost of the capital 13. Dividend decision | Unit 2 Financial Planning | Self Assessment Questions Fill in the blanks 1. Corporate objectives could be group into ___ and ___. 2. Control mechanism is developed for _____ and their effective use. 3. Seasonal peak requirements to be met from __________________ from banks. 4. ______ has a major impact on the total assets that the firm owns. 5. Sources of finance could be grouped into ______ and _____. 6.