This quiz works best with JavaScript enabled. Home > Cbse > Class 12 > Commerce > Business Studies > Class 12 Business Studies Chapter 9 Financial Management – Quiz 12 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 9 Financial Management Quiz 12 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following provides liquidity to money market instruments by creating a secondary market where they can be traded? A) Discount and Finance House of India. B) National Securities Depository Limited. C) State Bank of India. D) Reserve Bank of India. Show Answer Correct Answer: A) Discount and Finance House of India. 2. What is a consequence of overspending on one project? A) Improved financial planning. B) Increased profits. C) Better resource allocation. D) Lack of finance for other operations. Show Answer Correct Answer: D) Lack of finance for other operations. 3. The concept that value of a rupee to be received in future is less than the value Of a rupee on hand today is known as A) A. Recovery factor concept. B) B time value of money. C) C. Compounding fator concept. D) D. None of these. Show Answer Correct Answer: B) B time value of money. 4. Cost of retained earnings is equal to cost of equity A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 5. A Current asset is cash or any asset that will be exchanged for cash or used within one year. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 6. Solvency refers to: A) The extent to which the current assets of a business exceed current liabilities. B) The extent to which current liabilities of a business exceed current assets. C) Short-term financial goals of a business. D) The level of cash-flow in a business. Show Answer Correct Answer: A) The extent to which the current assets of a business exceed current liabilities. 7. 'if you want higher return there should be higher risk on your hand and vice versa' merupakan prinsip keuangan? A) Signaling. B) Incremental Benefit. C) Risk Return Trade Off. D) Risk Aversion. Show Answer Correct Answer: C) Risk Return Trade Off. 8. High debt equity ratio implies A) High earnings/share. B) High working risk. C) Less financial risk. D) High financial risk. Show Answer Correct Answer: D) High financial risk. 9. A schedule of how much consumers are willing and able to buy at a price A) Needs. B) Wants. C) Supply. D) Demand. Show Answer Correct Answer: D) Demand. 10. Exchange of things for other things, used in olden times, applied in today's world through the barter exchanges A) Barter. B) Cattle. C) Wampum. D) Cowrie shell. Show Answer Correct Answer: A) Barter. 11. What is the focus of the operational plan in corporate management? A) Maximizing employee satisfaction. B) Minimizing production costs. C) Achieving short-and long-term goals. D) Maximizing shareholder wealth. Show Answer Correct Answer: C) Achieving short-and long-term goals. 12. Convert 35% to a decimal A) 3.5. B) 35.00. C) .35. D) None of the above. Show Answer Correct Answer: C) .35. 13. The following are factors that may affect feasibility of a long-term financial plan except A) Insurance. B) Interest rate. C) Government policy. D) Inflation. Show Answer Correct Answer: A) Insurance. 14. Rasio yang menunjukkan kemampuan perusahaan dalam menyelesaikan kewajiban jangka pendeknya A) Quick Ratio. B) Acid Test Ratio. C) Current Ratio. D) Semua jawaban benar. Show Answer Correct Answer: D) Semua jawaban benar. 15. Cattle, cowrie shells, wampum, hemp A) Commodity Money. B) Currency (bills and coins). C) Check. D) Bank Draft. Show Answer Correct Answer: A) Commodity Money. 16. What are the five key components in the SMART concept in settting financial goals? A) Spesific, Measurable, Attainable, Realistic, Timebound. B) Spesific, Minimise, Allocate, Realistic, Timebound. C) Special, Measurable, Attainable, Reasonable, Timing. D) None of the above. Show Answer Correct Answer: A) Spesific, Measurable, Attainable, Realistic, Timebound. 17. What is the consequence of making only the minimum payment on a credit card? A) Immediate loan approval. B) No impact on credit score. C) Higher credit limit. D) Lower credit score. Show Answer Correct Answer: D) Lower credit score. 18. Net working capital is equal to A) Total operating capital minus net income. B) Current assets minus current liabilities. C) Total assets minus total liabilities. D) Current assets minus total liabilities. Show Answer Correct Answer: B) Current assets minus current liabilities. 19. .... and ..... are the two versions of goals of the financial management of the firm. A) Value maximisation, Wealth maximisation. B) Production maximisation, Sales maximisation. C) Sales maximisation, Profit maximization. D) Profit maximisation, Wealth maximization. Show Answer Correct Answer: D) Profit maximisation, Wealth maximization. 20. To manage school finances effectively, the financial managers should anticipate capital expenditures and maximize maintenance costs. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 21. Suppose you invest $ 1, 000 today, compounded quarterly, with the annual interest rate of 5.00%. What is your investment worth in one year? A) $ $ 1, 051.95. B) $ 1, 150.95. C) $ 1, 050.95. D) $ 1, 025.00. Show Answer Correct Answer: C) $ 1, 050.95. 22. Discuss the importance of budgeting in a family's monthly expenses. A) Budgeting restricts financial growth. B) Budgeting leads to financial instability. C) Budgeting is important in managing a family's finances for planning, controlling expenses, setting goals, allocating resources effectively, and monitoring performance. D) Budgeting is irrelevant in financial management. Show Answer Correct Answer: C) Budgeting is important in managing a family's finances for planning, controlling expenses, setting goals, allocating resources effectively, and monitoring performance. 23. Beta measures the ..... A) Financial risk. B) Market risk. C) Investment risk rate. D) Market and finance risk. Show Answer Correct Answer: C) Investment risk rate. 24. Consistent expense every month A) Flexible expense. B) Fixed expense. C) Income. D) None of the above. Show Answer Correct Answer: B) Fixed expense. 25. Manakah yang tidak termasuk dari keunggulan instrumen investasi Deposito A) Stabilitas pendapatan. B) Potensi pengembalian rendah. C) Relatif mudah. D) Aman, karena dijamin oleh LPS hingga batas tertentu. Show Answer Correct Answer: B) Potensi pengembalian rendah. 26. Based on the SMART concept, what is the meaning of Specific? A) Have a spesific time. B) Measurable. C) Have a specific goal. D) Goal is attainable. Show Answer Correct Answer: C) Have a specific goal. 27. What is the main purpose of financial management training? A) To reduce expenses. B) To cultivate entrepreneurial mindset. C) To help decision makers become more effective. D) To improve strategic financial planning. Show Answer Correct Answer: D) To improve strategic financial planning. 28. Factoring involves A) Purchase and collection of debts. B) Sales ledger management. C) Provision of specialised services related to credit investigation. D) All of the above. Show Answer Correct Answer: D) All of the above. 29. Keeping in view the high rate of Income Tax the company should give priority A) Owner. B) Preference. C) Equity. D) Debt. Show Answer Correct Answer: D) Debt. 30. Which of the following is NOT typically thought of as an investment activity? A) Accurately pricing financial assets. B) The process of buying and selling financial assets. C) Repaying borrowed funds. D) Negotiating the rules and regulations of financial transactions. Show Answer Correct Answer: C) Repaying borrowed funds. 31. Something that you pay is called ..... A) Income. B) Savings. C) A profit. D) An expense. Show Answer Correct Answer: D) An expense. 32. What is the primary purpose of supply side economic policy? A) To raise the level of demand in the economy. B) To increase the provision of state services. C) To improve the ability of the economy to produce goods and services. D) To reduce interest rates by increasing the money supply. Show Answer Correct Answer: C) To improve the ability of the economy to produce goods and services. 33. Which term refers to the funds provided by owners of a company? A) Financial leverage. B) Equity financing. C) Liquidity ratios. D) Net present value (NPV). Show Answer Correct Answer: B) Equity financing. 34. The account that accumulates total depreciation is called: A) Retained Earnings. B) Expense account. C) Accumulated Depreciation. D) Asset Replacement Reserve. Show Answer Correct Answer: C) Accumulated Depreciation. 35. Mr Liew and his wife have a total income of RM12 600 a month. They have three children and they would like to save an amount of RM250 000 for their children's education in 15 years from now. What is the minimum amount they need to save every month for their education fund? A) RM 1 400. B) RM 1 440. C) RM 1 360. D) RM 1 380. Show Answer Correct Answer: A) RM 1 400. 36. Location can be a big factor in determining if you rent or buy a home A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 37. How is interest related to savings and debt? A) It is a cost of both debt and savings. B) It is a benefit of both debt and savings. C) It is a cost of debt and a benefit of savings. D) It is a cost of savings and a benefit of debt. Show Answer Correct Answer: C) It is a cost of debt and a benefit of savings. 38. Generally, a corporation is owned by its: A) Managers. B) Directors. C) Shareholders. D) All of these options. Show Answer Correct Answer: C) Shareholders. 39. Bulgaria issued the world's first hybrid paper-polymer banknote A) 1983. B) 1988. C) 1996. D) 2005. Show Answer Correct Answer: D) 2005. 40. Operating Expense (Beban Operasi) memasukkan semua hal di bawah ini kecuali ..... A) Administration cost. B) Delivery dari Raw Materials. C) R&D cost. D) Advertising cost. Show Answer Correct Answer: C) R&D cost. 41. Capital structure shows A) Fixed assets-current assets ratio. B) Interest coverage ratio. C) Debtor-creditor ratio. D) Debt-equity ratio. Show Answer Correct Answer: D) Debt-equity ratio. 42. What are funds provided by owners of a company called? A) Net present value (NPV). B) Financial leverage. C) Liquidity ratios. D) Equity financing. Show Answer Correct Answer: D) Equity financing. 43. Custody of securities and documents is a A) Accounting function. B) Marketing function. C) Routine finance function. D) Legal function. Show Answer Correct Answer: C) Routine finance function. 44. Which of the following is true about the 'inflation' figure that is included in the money cost of capital? A) It is historic and specific to the business. B) It is historic general inflation suffered by the investors. C) It is expected and specific to the business. D) It is expected general inflation suffered by the investors. Show Answer Correct Answer: D) It is expected general inflation suffered by the investors. 45. India is facing continuous deficit in its balance of payments in the foreign exchange market rupee is expected to ..... A) Appreciate. B) Depreciate. C) Show no specific tendency. D) All of the above. Show Answer Correct Answer: B) Depreciate. 46. Which one of the following is referred to as Public Offer e.g. in IPO? A) Issue is offered to 50 persons. B) Issue is offered to equal to or less than 200 persons. C) Issue is offered to more than 200 persons. D) Issue is offered to 7 persons. Show Answer Correct Answer: C) Issue is offered to more than 200 persons. 47. It means people can store their wealth in the form of money. Money acts as a ..... A) Checks. B) Medium of exchange. C) Standard of value. D) Store of value. Show Answer Correct Answer: D) Store of value. 48. The most popular alternative to NPV for capital budgeting decisions is the ..... method. A) Profitability index. B) Payback period. C) Discounted payback period. D) Internal rate of return (IRR). Show Answer Correct Answer: D) Internal rate of return (IRR). 49. Example of diff countries using plastic polymer A) Canada, Brunei, Israel, Taiwan, New Zealand. B) Japan, China, India, Indonesia, Malaysia. C) Nepal, United Kingon, New Jersey, New York, Virginia. D) Philippines, Hongkong, China, Japan, Malaysia. Show Answer Correct Answer: A) Canada, Brunei, Israel, Taiwan, New Zealand. 50. Which of the following cost of capital requires tax adjustments? A) Cost of preference shares. B) Cost of Debentures. C) Cost of Retained earnings. D) Cost of equity shares. Show Answer Correct Answer: B) Cost of Debentures. 51. While calculating the WACC, cost of each component of the capital is weighted- A) In the ratio of 1:2:3:4. B) By the relative proportion of that type of funds in the capital structure. C) By the relative proportion of that type of funds to total assets in the company. D) None. Show Answer Correct Answer: B) By the relative proportion of that type of funds in the capital structure. 52. Your ..... is the amount of money in your account at any time or the amount of money you still owe on a purchase that you make monthly payments on like a car/house. A) Net Income. B) Balance. C) Budget. D) Salary. Show Answer Correct Answer: B) Balance. 53. Asset, liability and equity accounts are extended to A) Income statement section. B) Trial balance. C) Balance sheet section. D) Retained earnings. Show Answer Correct Answer: C) Balance sheet section. 54. What is the primary goal of financial managers? A) Maintaining liquidity. B) Minimizing debt. C) Maximizing profits. D) Increasing cash flow. Show Answer Correct Answer: C) Maximizing profits. 55. Financial management came into existence as a separate field of study from ..... ? A) 19th century. B) 21st century. C) 20th century. D) None of these. Show Answer Correct Answer: C) 20th century. 56. What is the role of corporate planning in managing business finances? A) Forecasting and budgeting for flexibility. B) Ensuring compliance with labor laws. C) Maximizing advertising expenditure. D) Minimizing employee turnover. Show Answer Correct Answer: A) Forecasting and budgeting for flexibility. 57. Q6) What external factor can influence an individual's financial plan in terms of investment decisions? A) Family traditions. B) Personal hobbies. C) Spending habits. D) Legislative changes. Show Answer Correct Answer: D) Legislative changes. 58. For an unlevered firm, the cost of capital can be determined by using the ..... A) Dividend yield. B) Capital Asset Pricing Model. C) Preferred stock yield. D) Yield on the traded debt. Show Answer Correct Answer: B) Capital Asset Pricing Model. 59. The ..... function focuses on raising capital to support a company's operations and investment programs. A) Capital budgeting. B) Financing. C) Corporate governance. D) Risk management. Show Answer Correct Answer: B) Financing. 60. In constant growth model, the value of equity share is sensitive to growth rate. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. ← PreviousNext →Related QuizzesCommerce QuizzesClass 12 QuizzesClass 12 Business Studies Chapter 9 Financial Management Quiz 1Class 12 Business Studies Chapter 9 Financial Management Quiz 2Class 12 Business Studies Chapter 9 Financial Management Quiz 3Class 12 Business Studies Chapter 9 Financial Management Quiz 4Class 12 Business Studies Chapter 9 Financial Management Quiz 5Class 12 Business Studies Chapter 9 Financial Management Quiz 6Class 12 Business Studies Chapter 9 Financial Management Quiz 7Class 12 Business Studies Chapter 9 Financial Management Quiz 8 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books