This quiz works best with JavaScript enabled. Home > Cbse > Class 12 > Commerce > Business Studies > Class 12 Business Studies Chapter 9 Financial Management – Quiz 30 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 9 Financial Management Quiz 30 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Is an ongoing process that will reduce your stress about money, support your current needs and help you build a nest egg for your long-term goals, like retirement. Financial planning is important because it allows you to make the most of your assets, and helps ensure you meet your future goals. A) Budgeting. B) Financial Planning. C) Financial management. D) Financing. Show Answer Correct Answer: B) Financial Planning. 2. How many 'C's are taken into the consideration while deciding the credit policy of customer? A) Five. B) Three. C) Two. D) Four. Show Answer Correct Answer: A) Five. 3. What does the operating cycle measure? A) Time from production to collection of cash. B) Efficiency in production. C) Total sales over a period. D) Profitability of the business. Show Answer Correct Answer: A) Time from production to collection of cash. 4. What is one of the top 10 importance of financial management? A) Human Resource Management. B) Marketing Strategies. C) Customer Service. D) Financial Planning. Show Answer Correct Answer: D) Financial Planning. 5. Role of financial manager involves which of the following decisions A) Financial Decision. B) Investment Decision. C) Dividend Decision. D) All of the above. Show Answer Correct Answer: D) All of the above. 6. The money you get before deductions is called? A) Take Home Amount. B) Year To Date. C) Net Pay. D) Gross Pay. Show Answer Correct Answer: D) Gross Pay. 7. Which entry method best suits a company that wants rapid international expansion with low capital commitment while maintaining brand standards across outlets? A) Franchising standardized operations to local partners. B) Licensing proprietary technology to local manufacturers. C) Exporting finished goods to foreign distributors. D) Building wholly owned subsidiaries in multiple countries. Show Answer Correct Answer: A) Franchising standardized operations to local partners. 8. ..... are the creditors' claims to the assets of a business. A) Owner's equity. B) Equity. C) Liabilities. D) Assets. Show Answer Correct Answer: C) Liabilities. 9. Which of the following can't be a Capital Structure? A) Preference Shares only. B) Equity + Debentures. C) Equity only. D) Equity + Preference. Show Answer Correct Answer: A) Preference Shares only. 10. There are 12 months in a year. How many years is 48 months? A) 3. B) 4. C) 5. D) None of the above. Show Answer Correct Answer: B) 4. 11. Below are the responsibilities of financial managers, except A) Controlling credit operations. B) Acquiring needed inventory. C) Making capital expenditures. D) Decide equity share percentage to founders and investors. E) Managing day-by-day needs of the business. Show Answer Correct Answer: D) Decide equity share percentage to founders and investors. 12. What is the chief financial question before an organisation? A) How much finance will be required for various business activities. B) How much amount can be acquired from various resources. C) How the profit of the business will be divided. D) All of these. Show Answer Correct Answer: D) All of these. 13. Bharat Express' specialises in Courier Services and helps business firms to make sure that the goods are made le to the customers at the right place and at the right time. What will be the working capital requirement of the company? A) Low. B) Depend on the volume of business. C) Moderate. D) High. Show Answer Correct Answer: A) Low. 14. The followings are elements of the financial management except A) Debts and savings. B) Purification of property. C) Savings, investmensts and protections. D) Budget. Show Answer Correct Answer: D) Budget. 15. Applying for 5 credit cards in one day will A) Improve your credit score. B) Hurt your credit score. C) All the above. D) None of the above. Show Answer Correct Answer: B) Hurt your credit score. 16. What is the main goal of strategic planning in corporate management? A) Minimizing operational costs. B) Maximizing short-term profits. C) Minimizing tax liabilities. D) Maximizing the entity's future position. Show Answer Correct Answer: D) Maximizing the entity's future position. 17. Cost of issuing new shares to the public is known as ..... A) Marginal Cost of Capital. B) Flotation Cost. C) Cost of Capital. D) Cost of Equity. Show Answer Correct Answer: B) Flotation Cost. 18. Q7) Which of the following is not a finance function? A) Cost management. B) Risk management. C) Investment decisions. D) Human resource management. Show Answer Correct Answer: D) Human resource management. 19. Comment on the validity of the following statements, in relation to the Efficient Market Hypothesis. Statement 1:An inefficient market is one in which the value of securities is not always an accurate reflection of the available information. Statement 2:In a semi-strong form market the share price incorporates all past information and all publicly-available information. A) False, False. B) True, True. C) True, False. D) False, True. Show Answer Correct Answer: B) True, True. 20. Apakah tujuan menyimpan rekod perbelanjaan harian? A) Untuk menjejak sumber pendapatan. B) Untuk merancang persaraan. C) Untuk memastikan perbelanjaan terkawal. D) Untuk mengira simpanan. Show Answer Correct Answer: C) Untuk memastikan perbelanjaan terkawal. 21. Financial Decisions involve: A) Investment, financing and dividend decision. B) Investment, financing and sales decision. C) Financing, dividend and cash decision. D) None of these. Show Answer Correct Answer: A) Investment, financing and dividend decision. 22. The most common method by which major airlines acquire new aircraft for their fleets today, which allows them to keep the asset off their balance sheet (in many cases), is: A) Operating leases. B) Capital leases. C) Direct outright purchase. D) Issuing aircraft-specific bonds. Show Answer Correct Answer: A) Operating leases. 23. Adira works as a financial manager in BOYAN Bhd. She is willing to invest RM7, 500 in a project that has an expected value of RM5, 000. Melissa can be described as ..... A) A risk taker. B) A risk indifferent. C) A risk avoider. D) A risk averse. Show Answer Correct Answer: B) A risk indifferent. 24. Proportion of total assets financed by a firm's creditors A) Market Ratios. B) Profitability Ratios. C) Corporate Taxes. D) Debt Ratios. Show Answer Correct Answer: D) Debt Ratios. 25. Funds raised from this source dilutes management's holding A) Debentures. B) Preference shares. C) Equity shares. D) None. Show Answer Correct Answer: C) Equity shares. 26. Calculate Degree of Combined Leverage from the following data:-Sales 50, 000 units @ RM 4 Per unitVariable Cost per unit 40% from sales priceFixed Costs Rm 100, 000Interest charges RM 3668 A) 6. B) 7.35. C) 1.22. D) 5.22. Show Answer Correct Answer: B) 7.35. 27. If equipment costs $ 50, 000 and accumulated depreciation is $ 15, 000, the book A) $ 15, 000. B) $ 50, 000. C) $ 65, 000. D) $ 35, 000. Show Answer Correct Answer: D) $ 35, 000. 28. What is related to debt A) C) High cost low risk. B) (a) Higher cost higher risk. C) (d) Low cost low risk. D) (b) Lower cost higher risk. Show Answer Correct Answer: D) (b) Lower cost higher risk. 29. The ..... is a financial report that shows incoming and outgoing money during an accounting period (often a month, quarter, or year). A) Statement of cash flows. B) Financial forecast. C) Income statement. D) Financial plan. Show Answer Correct Answer: A) Statement of cash flows. 30. Evidence of goods stored in a warehouse and can be used as a collateral for a loan A) Bank Draft. B) Check. C) Commodity Money. D) Warehouse Receipt. Show Answer Correct Answer: D) Warehouse Receipt. 31. Encik Sharul wants to buy a car in two years. His total monthly income is RM 5 600 and his total monthly fixed and variable expenses is RM 3 800. He plans to pay RM 8 400 as the down payment of the car. How much is his monthly savings in order to achieve his financial goal? A) RM 350. B) RM 75. C) RM 275. D) RM 180. Show Answer Correct Answer: A) RM 350. 32. The Phase in which the financial management was considered necessary only during specific events was called as ..... A) Traditional Phase. B) Transitional Phase. C) Modern Phase. D) None of the above. Show Answer Correct Answer: A) Traditional Phase. 33. The total amount of money owed to a business is known as, accounts receivable. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 34. Debenture indicate the A) Directors shares. B) Long term borrowings of a company. C) The investment of equity shareholders. D) Short term borrowings of the company. Show Answer Correct Answer: B) Long term borrowings of a company. 35. What is the primary agency problem that arises between shareholders and management? A) Market volatility. B) Lack of product innovation. C) Excessive competition. D) Conflict of interest. Show Answer Correct Answer: D) Conflict of interest. 36. Bird in hand argument is given by A) Walters model. B) Gordon model. C) Mm model. D) None of above. Show Answer Correct Answer: B) Gordon model. 37. Which statement best defines a Multinational Corporation (MNC)? A) Sells only exports through independent dealers. B) Produces and sells in multiple countries, one headquarters. C) Operates in one country with multiple brands. D) Has many headquarters with no home base. Show Answer Correct Answer: B) Produces and sells in multiple countries, one headquarters. 38. What is the purpose of a capital budget in project planning? A) Allocating funds for employee bonuses. B) Estimating costs for new systems. C) Approving capital expenditure proposals. D) Distributing resources for strategic planning. Show Answer Correct Answer: C) Approving capital expenditure proposals. 39. The size of assets, the profitability and competitiveness are affected by one of the financial decisions. Name the decision A) Financing decision. B) Capital budgeting. C) Dividend decision. D) Working capital decision. Show Answer Correct Answer: B) Capital budgeting. 40. What is a key aspect of financial planning within financial management? A) Managing daily operational tasks. B) Forecasting financial needs and estimating capital requirements. C) Developing new marketing campaigns. D) Hiring and training new employees. Show Answer Correct Answer: B) Forecasting financial needs and estimating capital requirements. 41. Average cost of capital in case of optimum capital structure is- A) Highest. B) Lowest. C) Zero. D) None of these. Show Answer Correct Answer: B) Lowest. 42. What are the 2 parts of a budget A) Income and expenses. B) Paychecks and Gifts. C) Fixed and Flexible. D) None of the above. Show Answer Correct Answer: A) Income and expenses. 43. What is the cost of capital? A) Cost of the products or services of the company. B) Cumulative calculation of the capital structure. C) Cost of the company funds. D) Cost of capital investment in the company. Show Answer Correct Answer: C) Cost of the company funds. 44. A ..... is a broad term describing any marketplace where buyers and sellers participate in the trade of assets such as equities, bonds, currencies and derivatives ..... are typically defined by having transparent pricing, basic regulations on trading, costs and fees, and market forces determining the prices of securities that trade. A) Public Market. B) Market. C) Bank. D) Financial Market. Show Answer Correct Answer: D) Financial Market. 45. Which is the better buy? Shampoo A is $ 4.59 for 32 ozs. and shampoo B is $ 8.86 for 46 ozs.? A) Shampoo A. B) Shampoo B. C) Both are equally good. D) Neither A or B. Show Answer Correct Answer: A) Shampoo A. 46. The profit maximization objective has been criticized on the basis of: A) Ignore risk factor. B) Ignore time value of money. C) Ambiguity. D) All of these. Show Answer Correct Answer: D) All of these. 47. The higher the degree of operating leverage, the more sensitive operating income is to the changes in sales. A) TRUE. B) FALSE. C) All the above. D) None of the above. Show Answer Correct Answer: A) TRUE. 48. What are the strategies for effective cash flow management in a small business? A) Monitoring and forecasting cash flow, reducing expenses, increasing sales, managing accounts receivable and accounts payable, and maintaining a cash reserve. B) Ignoring cash flow altogether. C) Spending money without tracking expenses. D) Not worrying about accounts receivable and accounts payable. Show Answer Correct Answer: A) Monitoring and forecasting cash flow, reducing expenses, increasing sales, managing accounts receivable and accounts payable, and maintaining a cash reserve. 49. What is the role of the CFO in a firm? A) Overseeing resource mobilization. B) Managing firm operations. C) Providing government services. D) Managing firm finances. Show Answer Correct Answer: D) Managing firm finances. 50. How is financial management training beneficial for businesses? A) It improves customer satisfaction. B) It increases the availability of capital. C) It allows for more informed decision making. D) It provides tax benefits. Show Answer Correct Answer: C) It allows for more informed decision making. 51. Which financial statement provides an overview of a company's financial position at a specific point in time? A) Cash flow statement. B) Balance sheet. C) Income statement. D) Statement of retained earnings. Show Answer Correct Answer: B) Balance sheet. 52. I like to help others, so I am happy to do this. A) Saving. B) Spending. C) Earning. D) Donating. Show Answer Correct Answer: D) Donating. 53. RENT, HOUSE INSTALMENT, INSURANCE, AND CREDIT CARD PAYMENT ARE: A) FIXED EXPENSES. B) VARIABLE EXPENSES. C) All the above. D) None of the above. Show Answer Correct Answer: A) FIXED EXPENSES. 54. Financial Management is a ..... process A) Dynamic. B) Continuous. C) Rigid. D) Abnormal. Show Answer Correct Answer: B) Continuous. 55. Corporate spending function that trying to get funds with minimal costs and the most favourable terms is called ..... A) The function to use. B) The function to allocate. C) The function of meeting funding. D) The function of management. Show Answer Correct Answer: C) The function of meeting funding. 56. Modal kerja merupakan investasi dalam harta jangka pendek atau investasi dalam harta lancar (current assets) yaitu: A) Kas, Piutang, Persediaan dan Hutang jangka panjang. B) Gross working capital. C) Kas, Piutang, Persediaan dan Hutang jangka pendek. D) Jawaban a, b dan c semua benar. Show Answer Correct Answer: C) Kas, Piutang, Persediaan dan Hutang jangka pendek. 57. The difference between current assets and current liabilities is called ..... A) Working capital. B) Fixed capital. C) Gross working capital. D) Net working capital. Show Answer Correct Answer: D) Net working capital. 58. It is possible that the company has profits but its cash flow is negative. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 59. THE PART OF THE PROFIT WHICH IS DISTRIBUTED TO THE SHAREHOLDERS IS CALLED A) DEBENTURE. B) RETAINED EARNING. C) CORPORATE SAVING. D) DIVIDEND. Show Answer Correct Answer: D) DIVIDEND. 60. Used in everyday exchange transactions in place of actual bank notes A) Debit Card. B) Credit Card. C) Prepaid Cash Card. D) Plastic Money. Show Answer Correct Answer: D) Plastic Money. ← 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