Question 1
According to ACCA FM, what is generally accepted as the primary financial objective of a profit-seeking company?
Correct Answer:
Maximisation of shareholder wealth
Question 2
Agency theory in FM is primarily concerned with the conflict of interest between which two parties?
Correct Answer:
Shareholders (principals) and managers (agents)
Question 3
Which of the following is a recognised method of encouraging managers to act in shareholders' interests?
Correct Answer:
Granting share options to managers
Question 4
In a not-for-profit organisation, the concept of 'value for money' is usually assessed using which three Es?
Correct Answer:
Economy, efficiency and effectiveness
Question 5
A company has earnings available to ordinary shareholders of $4.5m and 9m shares in issue. What is its earnings per share (EPS)?
Correct Answer:
$$0.50
Question 1
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About this Exam

Prepare with the ACCA FM Practice Questions - ACCA Applied Skills - Financial Management (FM) Exam practice quiz. This question bank includes 100 questions covering cost, company, capital, rate, and equity. Use it to review important concepts, identify knowledge gaps, and build confidence for the related exam, course, or assessment.

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ACCA FM Practice Questions - ACCA Applied Skills - Financial Management (FM) Exam

This practice set contains 100 questions from the matching question bank and focuses on cost, company, capital, rate, and equity. Work through each question carefully, review the provided solutions, and revisit topics that need more study before your next attempt.

This is an independent study resource intended for practice and review; it is not an official examination or an endorsement by any organization named in the title.

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