This quiz works best with JavaScript enabled. Home > Cbse > Class 12 > Commerce > Business Studies > Class 12 Business Studies Chapter 9 Financial Management – Quiz 13 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 9 Financial Management Quiz 13 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Used for exchange of goods and services A) Medium of Exchange. B) Standard of Value. C) Store of Value. D) Means of Deferred Payment. Show Answer Correct Answer: A) Medium of Exchange. 2. Which of the following best describes the main purpose of financial management in an organization?? A) A) Minimizing tax payments. B) B) Maximizing shareholder value. C) C) Reducing the number of employees. D) None of the above. Show Answer Correct Answer: B) B) Maximizing shareholder value. 3. A firm operating in multiple countries faces which primary currency-related challenge compared to a single-country firm? A) Stable cash flows with predictable exchange rates. B) Simple pricing and uniform accounting entries. C) Managing conversions and volatility across several currencies. D) No need for hedging or derivative contracts. Show Answer Correct Answer: C) Managing conversions and volatility across several currencies. 4. Financial leverage refers to the rate of change in earnings per share for a given change in earnings ..... A) Before tax. B) Before interest. C) Before interest and tax. D) After interest and tax. Show Answer Correct Answer: C) Before interest and tax. 5. The primary aim of financial management is ..... A) Wealth maximisation. B) Increase the share price. C) Both A and B. D) Distributing maximum dividend. Show Answer Correct Answer: C) Both A and B. 6. Financial management has a general meaning in the context of the family for the management of ..... A) Business. B) Income. C) Business. D) Life. Show Answer Correct Answer: B) Income. 7. With the help of the financial planning a situation of continuous ..... can be maintained. A) Minimum Capital. B) Liquidity. C) Maximum Capital. D) (b) and (c). Show Answer Correct Answer: B) Liquidity. 8. Wealth in the form of money or other assets owned by a person or organization or available or contributed for a particular purpose such as starting a company or investing. A) Consumer. B) Seller. C) Capital. D) Demand. Show Answer Correct Answer: C) Capital. 9. The factors involved in setting a dividend policy include all of the following except A) Restrictive covenants in a bond indenture. B) Growth prospects. C) The legal prohibition on paying dividend which exceed current earnings. D) None of above. Show Answer Correct Answer: C) The legal prohibition on paying dividend which exceed current earnings. 10. .... is the source of finance where the banker may allow the borrower to overdraw on his account with or without Security. A) Bills discounting. B) Cash credit. C) Bank overdrafts. D) Loans. Show Answer Correct Answer: C) Bank overdrafts. 11. What is a key characteristic of venture capital? A) Low risk and low return. B) High risk and high return. C) Short-term investment focus. D) Guaranteed returns. Show Answer Correct Answer: B) High risk and high return. 12. Which of the following is the wrong key component in SMART financial goals?Yang manakah merupakan komponen matlamat kewangan SMART yang salah? A) R-Review / Mengkaji semula. B) T-Time-bound / Jangka masa ditetapkan. C) M-Measureable / Boleh diukur. D) S-Specific / Spesifik. E) A-Attainable / Boleh dicapai. Show Answer Correct Answer: A) R-Review / Mengkaji semula. 13. Rate of return on capital is exceptionally high in A) Under capitalisation. B) Over capitalisation. C) Fixed capital. D) Working capital. Show Answer Correct Answer: A) Under capitalisation. 14. Managing the firm's short-term financing activities is known as ..... A) Working capital management. B) Capital structure. C) Capital budgeting. D) Accounts receivable management. Show Answer Correct Answer: A) Working capital management. 15. Sriram Industries Ltd. issued 10, 000, 10% Debentures of Rs.100 each. The tax rate is 50%. what would be the after-tax cost of debt if the debentures are issued at a premium of 10%? A) 4.55%. B) 5.54%. C) 5.44%. D) 4.45%. Show Answer Correct Answer: A) 4.55%. 16. Chris gets a monthly statement each month to pay his ..... A) Barber. B) Credit Card. C) Debit card. D) Saving account. Show Answer Correct Answer: B) Credit Card. 17. When two or more companies combine into one company, is called A) Takeover. B) Hostile Combination. C) Acquisition. D) Merger. Show Answer Correct Answer: D) Merger. 18. What does "saving" typically mean in personal finance? A) Spending all available income. B) Setting aside money for future use. C) Borrowing money from a bank. D) Investing in the stock market. Show Answer Correct Answer: B) Setting aside money for future use. 19. The increasing percentage ownership of public corporations by institutional investors has A) Taken away the voice of the individual investor. B) Created more pressure on public companies to manage their firms more efficiently. C) Created higher returns for the stock market in general. D) Had no effect on corporate management. Show Answer Correct Answer: B) Created more pressure on public companies to manage their firms more efficiently. 20. Paying the minimum on credit card bills is a good money management practice. A) Fact. B) Fiction. C) All the above. D) None of the above. Show Answer Correct Answer: B) Fiction. 21. What are the common financial ratios used to analyze a company's performance? A) Inventory turnover ratios, debt coverage ratios, capital structure ratios. B) Profitability ratios, liquidity ratios, leverage ratios, efficiency ratios. C) Growth ratios, solvency ratios, market value ratios. D) Sales ratios, credit risk ratios, asset management ratios. Show Answer Correct Answer: B) Profitability ratios, liquidity ratios, leverage ratios, efficiency ratios. 22. An empty jar can help me with this situation. A) Donating. B) Saving. C) Investing. D) Spending. Show Answer Correct Answer: B) Saving. 23. ..... is the system of recording business transactions, and analyzing, verifying, and reporting the results. A) Accounts receivable. B) Accounting. C) Generally accepted accounting principals (GAAP). D) Fixed assets. Show Answer Correct Answer: B) Accounting. 24. The non discounting method that ignores the fact that profit can be reinvested A) Urgency. B) Pay back period. C) Average rate of return. D) None of the above. Show Answer Correct Answer: C) Average rate of return. 25. Market value of shares are decided by A) The government. B) The respective companies. C) The investment market. D) The shareholders. Show Answer Correct Answer: C) The investment market. 26. Dalam menghitung COGS pada perusahaan manufaktur adalah: A) Saldo awal persediaan barang jadi + harga pokok barang yang diproduksi-saldo akhir. B) Sales-expenses. C) EBIT-Interest expenses. D) Saldo awal persediaan + harga perolehan barang yang dibeli-persediaan akhir. Show Answer Correct Answer: A) Saldo awal persediaan barang jadi + harga pokok barang yang diproduksi-saldo akhir. 27. Financial decisions are mainly concerned with: A) Raising funds. B) Using funds effectively. C) Both a and b. D) None of the above. Show Answer Correct Answer: C) Both a and b. 28. Yang BUKAN merupakan Laporan Keuangan adalah: A) Laporan Modal kerja (Net working Capital Statement). B) Laporan Arus Kas (Cash Flow Statement). C) Laporan Laba Rugi (Income Statement). D) Laporan Neraca (Balance Sheet). Show Answer Correct Answer: A) Laporan Modal kerja (Net working Capital Statement). 29. Which one of the following is NOT a main concerned area of Financial Management is: A) Dividend decision. B) Corporate decisions. C) Investment decisions. D) Financing decisions. Show Answer Correct Answer: B) Corporate decisions. 30. Who is someone who acquires goods and services for his or her own personal use? A) Producer. B) Superman. C) Consumer. D) Seller. E) Market economy. Show Answer Correct Answer: C) Consumer. 31. Cost of debt is usually ..... than cost of equity. A) Lower. B) Equal. C) Higher. D) Unrelated. Show Answer Correct Answer: A) Lower. 32. India's foreign exchange rate system is ..... A) Fixed target of band. B) Free float. C) Fixed system. D) Managed float. Show Answer Correct Answer: D) Managed float. 33. Profit or loss is defined as "the total of income less expenses, excluding the components of other comprehensive income" . A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 34. Mainly general type of Direct Foreign Investment (DFI) is A) International trade. B) Patent. C) Franchising. D) Establishment of new subsidiaries. Show Answer Correct Answer: D) Establishment of new subsidiaries. 35. A corporation is A) Owned by stockholders who enjoy the privilege of limited liability. B) Easily divisible between owners. C) A separate legal entity with perpetual life. D) All of the above. Show Answer Correct Answer: D) All of the above. 36. Future cashflow is discounted at ..... A) Rate of FMP. B) Cost of equity capital only. C) NRR. D) Cost of capital. Show Answer Correct Answer: D) Cost of capital. 37. Your company just sold a product with the following payment plan:$ 50, 000 today, $ 25, 000 next year, and $ 10, 000 the following year. If your firm places the payments into an account earning 10% per year, how much money will be in the account after collecting the last payment? A) $ 98, 500. B) $ 85, 000. C) $ 98, 000. D) $ 99, 000. Show Answer Correct Answer: C) $ 98, 000. 38. Which statement best defines globalisation in a business context? A) Increasing national self-sufficiency and isolation. B) Growing interconnectedness across borders in markets. C) Domestic expansion of local retail and services. D) Centralised control of trade by single governments. Show Answer Correct Answer: B) Growing interconnectedness across borders in markets. 39. What is the primary goal of corporate finance? A) Maximizing shareholder wealth. B) Maximizing market share. C) Maximizing customer loyalty. D) Maximizing employee satisfaction. Show Answer Correct Answer: A) Maximizing shareholder wealth. 40. Which of the following is a need A) McDonald's food. B) Motorcycle. C) Golf cart. D) House or apartment. Show Answer Correct Answer: D) House or apartment. 41. A ..... is a monthly plan that helps you use your money correctly in order to pay all your bills and still have money left over for savings or emergencies. A) Budget. B) Savings. C) Income. D) Economics. Show Answer Correct Answer: A) Budget. 42. Dalam Laporan Arus Kas (Cash Flow Report) terdapat 3 kategori arus kas yaitu KECUALI: A) Arus Kas dari Promosi. B) Arus Kas dari Pendanaan. C) Arus Kas dari Investasi. D) Arus Kas dari Operasional. Show Answer Correct Answer: A) Arus Kas dari Promosi. 43. The process of converting long term illiquid assets into financial instruments for raising money is called A) Seed Capital. B) Venture Capital. C) Securitisation. D) Bridge Finance. Show Answer Correct Answer: C) Securitisation. 44. This is the oldest and common and simplest form of business organization A) PARTNERSHIP. B) SOLE PROPRIETORSHIP. C) All the above. D) None of the above. Show Answer Correct Answer: B) SOLE PROPRIETORSHIP. 45. Delilah, Nabiel, and Johnny are studying for their financial management exam. They come across a question:'What are the three main financial statements used in business?' A) Income statement, balance sheet, and cash flow statement. B) Budget report, expense sheet, and investment summary. C) Tax report, liability statement, and inventory report. D) Profit statement, equity statement, and revenue statement. Show Answer Correct Answer: A) Income statement, balance sheet, and cash flow statement. 46. Sarah earns $ 600 a month. She spends 15% on rent. She puts 20% into her savings account. How much money does she have left each month? A) $ 90. B) $ 290. C) $ 390. D) None of the above. Show Answer Correct Answer: C) $ 390. 47. Which THREE of the following are the main types of decision facing the financial manager in a company? A. Income decision B. Investment decision C. Dividend decision D. Financing decision E. Appraisal decision F. Budget decision A) A, B & D. B) B, C & D. C) C, D, F. D) B, D & F. Show Answer Correct Answer: B) B, C & D. 48. Financial leverage helps one to estimate ..... A) Business Risk. B) Financial Risk. C) Production Risk. D) Business and financial risk. Show Answer Correct Answer: B) Financial Risk. 49. What financial evaluation methods are commonly used by financial managers to evaluate potential investments? A) Market analysis and competitor comparison. B) Cost-benefit analysis and break-even analysis. C) Net Present Value (NPV) and Internal Rate of Return (IRR). D) Customer segmentation and customer lifetime value analysis. Show Answer Correct Answer: C) Net Present Value (NPV) and Internal Rate of Return (IRR). 50. .... is not a characteristic of speculation. A) Risk taking. B) Hedging. C) Exchange rate fluctuation. D) Profit motive. Show Answer Correct Answer: B) Hedging. 51. During the Interwar Period, competitive devaluations were associated with which harmful dynamic? A) Beggar-thy-neighbour export strategy. B) Automatic gold flow adjustments. C) Pegging to the U.S. dollar at $ 35 per ounce. D) Stable and predictable exchange rates. Show Answer Correct Answer: A) Beggar-thy-neighbour export strategy. 52. Family Mart collect RM2, 000 from SS Company who is the customer. The statement shows that Family Mart utilizes A) Sources of fund. B) Uses of fund. C) All the above. D) None of the above. Show Answer Correct Answer: A) Sources of fund. 53. Below are examples of non-profit organization, except A) MAKNA. B) Permodalan Nasional Berhad. C) Mercy Malaysia. D) Malaysian Nature Society. Show Answer Correct Answer: B) Permodalan Nasional Berhad. 54. Decisions relating to disposal of profits A) Financing decision. B) Dividend decision. C) All the above. D) None of the above. Show Answer Correct Answer: B) Dividend decision. 55. Which of the following is NOT an example of a financial transaction? A) Your parents use their credit card to pay for your current term's college tuition. B) You use the ATM at Heathrow airport in London to withdraw British pounds. C) Your roommate lends you $ 20 and you repay it in one week. D) All of the above are financial transactions. Show Answer Correct Answer: D) All of the above are financial transactions. 56. Apa keunggulan dari investasi emas? A) Nilai emas cenderung stabil. B) Emas tidak memerlukan perencanaan keuangan. C) Emas mudah dijual kembali. D) Emas tidak memerlukan perawatan khusus. Show Answer Correct Answer: A) Nilai emas cenderung stabil. 57. Did the company earn a satisfactory income? A) Creditors. B) Investors. C) Management. D) Finance. Show Answer Correct Answer: B) Investors. 58. True or False:Income is money you earn A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 59. Which out of the following happens to be a financial decision? A) Investment decision. B) Financing decision. C) Dividend decision. D) All of these. Show Answer Correct Answer: D) All of these. 60. Oblong-shaped clamshell sawed into beads polished and strung togethe, used as an ornament A) Coinage. B) Wampum. C) Metals. D) Mint. Show Answer Correct Answer: B) Wampum. ← 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