This quiz works best with JavaScript enabled. Home > Cbse > Class 12 > Commerce > Business Studies > Class 12 Business Studies Chapter 9 Financial Management – Quiz 15 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 9 Financial Management Quiz 15 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following is NOT a component of working capital management? A) Cash management. B) Accounts receivable management. C) Capital structure decisions. D) Inventory management. Show Answer Correct Answer: A) Cash management. 2. Which of the following is/are correct?Yang manakah kenyataan berikut adalah benar? A) Fixed expense-dividends / Belanja tetap-dividen. B) Variable expense-rent / Belanja berubah-sewa. C) Active income-Allowances / Pendapatan aktif-elaun. D) Passive income-allowances / Pendapatan pasif-elaun. Show Answer Correct Answer: C) Active income-Allowances / Pendapatan aktif-elaun. 3. Financial management function that managing the funds earned from active spending is called ..... A) Planning function of funds. B) Obtaining of funds. C) Allocation of funds. D) Earned of funds. Show Answer Correct Answer: C) Allocation of funds. 4. Which of following does not a type of direct foreign investment? A) International trade. B) Franchising. C) Acquisition of existing operators. D) Joint ventures. Show Answer Correct Answer: A) International trade. 5. Apakah maksud 'S' dalam matlamat kewangan SMART? A) Ringkas. B) Strategik. C) Spesifik. D) Berdaya tahan. Show Answer Correct Answer: C) Spesifik. 6. AW Co needs to have $ 100, 000 working capital in place immediately for the start of a 2-year project. The amount will stay constant in real terms. Inflation is running at 10% per annum, and AW Co's money cost of capital is 12%.What is the present value of the cash flows relating to working capital? A) $ (20, 300). B) $ (21, 260). C) $ (4, 090). D) $ (108, 730). Show Answer Correct Answer: B) $ (21, 260). 7. Type of finance which concerns with revenue and disbursement of Government. A) Personal Finance. B) Corporate Finance. C) Private Finance. D) Public Finance. Show Answer Correct Answer: D) Public Finance. 8. The management of money and financial decisions for a person or family including budgeting, investments, retirement planning and investments is ..... A) Economics. B) Savings. C) Investment. D) Personal Finance. Show Answer Correct Answer: D) Personal Finance. 9. The basic format of an income statement is A) Income-Expenses = EBIT. B) Sales-Liabilities = Profits. C) Assets-Liabilities = Profits. D) Sales-Expenses = Profits. Show Answer Correct Answer: D) Sales-Expenses = Profits. 10. A ratio that measures the extent to which a company generates a profit. This analysis focuses on the relationship between revenues and expenses and on the level of profits relative to the size of investment in the business. A) Leverage Ratio. B) Profitability Ratio. C) Asset Utilization Ratio. D) Liquidity Ratio. Show Answer Correct Answer: B) Profitability Ratio. 11. Dividend decision deals with A) Allocation of capital. B) Payment of dividends to shareholders. C) Raising funds. D) Managing cash. Show Answer Correct Answer: B) Payment of dividends to shareholders. 12. Which of the following is the primary objective of financial decision-making in a corporation? A) Maximizing shareholders wealth. B) Maximizing corporate debt. C) Maximizing current sales revenue. D) Increasing salaries for managers. Show Answer Correct Answer: A) Maximizing shareholders wealth. 13. Which one of the following is false regarding simulations? A) They can consider several variables changing simultaneously. B) They have a clear decision rule. C) They give a better understanding of risk. D) They describe a range and probability of possible outcomes. Show Answer Correct Answer: B) They have a clear decision rule. 14. Which of these is not a part of Capital Structure? A) Short term Borrowings. B) Debentures. C) Equity Shares. D) Bonds. Show Answer Correct Answer: A) Short term Borrowings. 15. Which objective ignores the time factor? A) Capital budgeting. B) Wealth maximization. C) Shareholder value maximization. D) Profit maximization. Show Answer Correct Answer: D) Profit maximization. 16. Which of the following best identifies the four main areas of finance? A) Corporate finance, investments, financial institutions and markets, international finance. B) Corporate finance, investments, capital structure, international finance. C) Exchange rate management, investments, financial institutions and markets, international finance. D) Corporate finance, capital budgeting, financial institutions and markets, regulation. Show Answer Correct Answer: A) Corporate finance, investments, financial institutions and markets, international finance. 17. Why is financial management important in IS? A) IS projects cost money. B) Money is essential. C) To manage money wisely. D) All of the above. Show Answer Correct Answer: D) All of the above. 18. What is the importance of studying financial management? A) It is essential in making personal financial decisions. B) It has no relevance to global business society. C) It is essential in business including personal lives to financial decisions. D) It is only important during global financial crisis. Show Answer Correct Answer: C) It is essential in business including personal lives to financial decisions. 19. By completing an Income Statement, you can make decisions. How could you improve sales? A) Introduce a new product. B) Increase advertising. C) Reduce selling prices. D) Reduce the cost price of your product. Show Answer Correct Answer: D) Reduce the cost price of your product. 20. If there is a negative cash flow, we should reduce A) Fixed expenses. B) Passive income. C) Variable expenses. D) Active income. Show Answer Correct Answer: A) Fixed expenses. 21. How long is the investment period in the compound interest example? A) 20 years. B) 15 years. C) 10 years. D) 5 years. Show Answer Correct Answer: C) 10 years. 22. Apa saja elemen yang mencakup definisi financial menurut materi? A) Semua jawaban benar. B) Pengelolaan keuangan. C) Perencanaan keuangan. D) Manajemen resiko. Show Answer Correct Answer: A) Semua jawaban benar. 23. Ruang lingkup managemen keuangan ada 3, yaitu: A) Keputusan pendanaan, keputusan investasi & keputusan pengelolaan. B) Keputusan pendanaan, keputusan alokasi asset, keputusan budgeting. C) Keputusan pendanaan, keputusan budgeting, keputusan investasi. D) Keputusan investasi, keputusan alokasi, keputusan management asset. Show Answer Correct Answer: A) Keputusan pendanaan, keputusan investasi & keputusan pengelolaan. 24. John is single, 20 years old, and makes less than $ 100, 000 a year. He has no children. Which federal tax form should he use? A) 1040EZ. B) W-4. C) W-2. D) None of the above. Show Answer Correct Answer: A) 1040EZ. 25. Langkah apa yang tidak termasuk dalam pengelolaan keuangan menurut materi? A) Memantau pengeluaran. B) Membuat anggaran. C) Mengindentifikasi income dan outcome. D) Menetapkan tujuan jangka menengah. Show Answer Correct Answer: D) Menetapkan tujuan jangka menengah. 26. Rashid plans to buy a motorcycle costs RM6000 in two years. Calculate the minimum amount of money need to be kept monthly to achieve his desire. A) RM250. B) RM225. C) RM280. D) RM180. Show Answer Correct Answer: A) RM250. 27. This Act shall be known as the "Economic and Financial Literacy Act" A) Republic Act No. 10066. B) Republic Act No. 10665. C) Republic Act No. 10922. D) None of the above. Show Answer Correct Answer: C) Republic Act No. 10922. 28. What is foreign exchange exposure? A) The risk of loss due to changes in foreign exchange rates. B) The risk of loss due to changes in commodity prices. C) The risk of loss due to changes in interest rates. D) The risk of loss due to changes in stock prices. Show Answer Correct Answer: A) The risk of loss due to changes in foreign exchange rates. 29. The arbitrary process is the behavioral foundation for the ..... A) MM approach. B) Gorder approach. C) Miller approach. D) XX approach. Show Answer Correct Answer: A) MM approach. 30. Strategic financial management helps prepare a company for sustainable long-term growth. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 31. The total current assets are Rs 23, 85, 385 and current liabilities are 5, 58, 461. Calculate Maximum permissible Bank finance as per Tandon committee norms using First method of lending. A) Rs 13, 70, 193. B) Rs 12, 30, 578. C) Rs 4, 56, 431. D) Rs 18, 24, 926. Show Answer Correct Answer: A) Rs 13, 70, 193. 32. Sue works a 53 hour work week (40 is a regular week), and makes $ 17.50 per hour-what is her gross pay with her overtime? A) $ 1, 200.25. B) $ 700.00. C) $ 341.25. D) $ 1, 041.25. Show Answer Correct Answer: D) $ 1, 041.25. 33. The goal of profit maximisation would result in priority for ..... A) Timings of the returns. B) Earnings per share. C) Risk of the investment. D) Cash flows available to stockholders. Show Answer Correct Answer: B) Earnings per share. 34. Joe works 50 hours and makes $ 12.50 an hour, what is his gross pay. (40 hrs. is a regular work week) A) $ 500.00. B) $ 187.50. C) $ 678.50. D) $ 687.50. Show Answer Correct Answer: D) $ 687.50. 35. In each decision the finance manager has to bring a trade-off between ..... and ..... A) Liquidity versus Profitability. B) Risk versus Return. C) Both. D) None. Show Answer Correct Answer: C) Both. 36. Dividends are paid by corporations to existing shareholders based on their shareholdings in the company as a return on their investment. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 37. JCW Co is appraising an opportunity to invest in some new machinery that has the following cash flows.Initial investment $ 40, 000Net cash inflows for 5 years in advance $ 12, 000 per annumDecommissioning costs after 5 years $ 15, 000At a cost of capital of 10% what is the net present value of this project (to the nearest $ 100)? A) $ 720. B) $ 725. C) Nil. D) $ 700. Show Answer Correct Answer: D) $ 700. 38. Trading on equity is possible on A) Debentures. B) Preference shares. C) Equity shares. D) Debentures and preference shares. Show Answer Correct Answer: A) Debentures. 39. Money paid to the state and federal government so that the government can function is ..... A) Salary. B) Debt. C) Income. D) Taxes. Show Answer Correct Answer: D) Taxes. 40. Which financial ratio measures a company's ability to meet its short-term obligations? A) Return on equity (ROE). B) Debt-to-equity ratio. C) Gross profit margin. D) Current ratio. Show Answer Correct Answer: D) Current ratio. 41. Interest Receivable A) Debit. B) Credit. C) All the above. D) None of the above. Show Answer Correct Answer: A) Debit. 42. From the followings which is/are associated with an Investments A) Risk. B) Return. C) Both a & b. D) None of the above. Show Answer Correct Answer: C) Both a & b. 43. Which of the following is true for Secondary Markets? A) Prices are determined by demand-supply match for security in the market. B) Prices are decided by the SEBI. C) Prices are decided by the lead merchant banker. D) Prices are decided by the company. Show Answer Correct Answer: A) Prices are determined by demand-supply match for security in the market. 44. Things you can live without A) Needs. B) Wants. C) Plans. D) Goals. Show Answer Correct Answer: B) Wants. 45. What is the time value of money (TVM)? A) The concept that money available today is worth more than the same amount in the future. B) The concept that money available in the future is worth more than the same amount today. C) The concept that money has a constant value over time. D) The concept that money should be invested in stocks for long-term growth. Show Answer Correct Answer: A) The concept that money available today is worth more than the same amount in the future. 46. The discount factor used to appraise capital investment decisions is a measure of: A) The current high street interest rate. B) The opportunity cost of capital of the business. C) The current inflation rate. D) The opportunity cost of capital of all businesses in the same industry. Show Answer Correct Answer: B) The opportunity cost of capital of the business. 47. ..... represents the short-term liabilities that a business owes to creditors. A) Owner's equity. B) Accounts payable. C) Financial statement. D) Accounting equation. Show Answer Correct Answer: B) Accounts payable. 48. In a hire purchase agreement total interest of Rs 3, 00, 000 was paid for a period of 5 years. In the third year the instalment of Rs 3, 60, 000 was paid out of which Rs 3, 02, 500 was towards principal repayment. What is the amount of interest for third year? A) Rs 57, 500. B) Rs 3, 00, 000. C) Rs 60, 000. D) Rs 2, 500. Show Answer Correct Answer: A) Rs 57, 500. 49. If notes payable increases, the cash flow will be ..... ? A) A. INCREASES. B) B. DECREASES. C) All the above. D) None of the above. Show Answer Correct Answer: A) A. INCREASES. 50. What type of training do most business owners need to participate in? A) Financial literacy training. B) Financial forecasting training. C) Investment training. D) Personnel management training. Show Answer Correct Answer: A) Financial literacy training. 51. Depending on the industry, credit policy can vary from being crucial to being irrelevant. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 52. The n i approach assumed A) Ke is to be same and constant. B) There are no taxes. C) K0 falls as the degree of leverage is increased. D) All of the above. Show Answer Correct Answer: D) All of the above. 53. There are 6 steps to consider before creating a financial plan. 1. Define the short term and long term goal.2. Make an initial budget to achieve each goal.3. Calculate monthly savings needed for each goal.4. Analyse spending behaviour5 ..... 6. Determine income strategies.What is the 5th step? A) Make a list of short term and long term goals. B) Manage spending. C) Set a time frame to achieve each goal. D) Evaluate financial plan. Show Answer Correct Answer: C) Set a time frame to achieve each goal. 54. One of the major disadvantages of a sole proprietorship is A) Unlimited liability to the owner. B) Low operating costs. C) The simplicity of decision making. D) Low organizational costs. Show Answer Correct Answer: A) Unlimited liability to the owner. 55. Which of the following are included in the four C's of credit?(a) Character(b) Capacity(c) Causes(d) Capital(e) Collateral A) , (b), (c), (d). B) , (b), (d), (e). C) , (c), (d), (e). D) , (c), (d), (e). Show Answer Correct Answer: B) , (b), (d), (e). 56. What is the only payment method that does not charge interest or fees? A) Currency (cash). B) Credit Card. C) Debit Card. D) None of the above. Show Answer Correct Answer: A) Currency (cash). 57. Which one of the following forms of business organization is best suited to raising large amounts of capital? A) General partnership. B) Corporation. C) Limited liability company. D) Sole proprietorship. Show Answer Correct Answer: B) Corporation. 58. Measure the value or worth of something A) Standard of Value. B) Store of Value. C) Means of Deferred Payment. D) Conveyance. Show Answer Correct Answer: A) Standard of Value. 59. How many percentage should a person save from their monthly income? A) 8%. B) 5%. C) 20%. D) 10%. Show Answer Correct Answer: D) 10%. 60. The main objective of Financial Management on the basis of old concept- A) Maximisation of profit. B) Maximization of wealth. C) Both(a) and (b). D) None of these. Show Answer Correct Answer: A) Maximisation of profit. ← 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