This quiz works best with JavaScript enabled. Home > Cbse > Class 12 > Commerce > Business Studies > Class 12 Business Studies Chapter 9 Financial Management – Quiz 41 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 9 Financial Management Quiz 41 (27 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which is needed to evaluate financial status? A) Total income. B) Financial goal. C) Cash flow. D) Assets. Show Answer Correct Answer: D) Assets. 2. What is the primary reason for a company to issue stock? A) To distribute the risk of bankruptcy across more investors. B) To increase greater awareness of the company. C) To raise money to grow the company. D) None of the above. Show Answer Correct Answer: C) To raise money to grow the company. 3. These are given to managers based on their effectiveness in achieving company goals A) Ordinary Shares. B) Economic Value Added. C) Performance Shares. D) Preference Shares. Show Answer Correct Answer: C) Performance Shares. 4. ..... capital should be preferred while arranging for a long-term finance? A) Debt or borrowed capital. B) Retained earning. C) Equity share capital. D) Preference share capital. Show Answer Correct Answer: C) Equity share capital. 5. Bonds are bought and sold in ..... markets. A) Debt. B) Foreign exchange. C) Derivatives. D) Equity. Show Answer Correct Answer: A) Debt. 6. Agency costs are costs incurred when: A) Managers do not attempt to maximize firm value. B) Shareholders incur costs to monitor the managers and influence their actions. C) Both of these options. D) None of these options. Show Answer Correct Answer: C) Both of these options. 7. A portion of profits, which a company distributes among its shareholders is known as: A) Retained earnings. B) Interest. C) Capital gain. D) Dividends. Show Answer Correct Answer: D) Dividends. 8. More value is preferred than ..... A) None. B) Less. C) Equal. D) All. Show Answer Correct Answer: B) Less. 9. Which of the following is not a type of Business Risk? A) Demand Risk. B) Foreign Risk. C) Legal Risk. D) Financial Risk. Show Answer Correct Answer: D) Financial Risk. 10. If an employee earns "$ 8.50" per hour, what is their "Overtime Rate" ? A) $ 12.50. B) $ 12.75. C) $ 8.50. D) $ 10.25. Show Answer Correct Answer: B) $ 12.75. 11. What is the benefit of having a good credit score? A) Lower interest rates on loans. B) Better chances of renting an apartment. C) More favorable terms on credit cards. D) All of the above. Show Answer Correct Answer: D) All of the above. 12. The excess of the present value of benefits over the present value of costs of a course of A) A.payoff. B) B. Benefits. C) C. Wealth. D) D all of these. Show Answer Correct Answer: C) C. Wealth. 13. Which budget is designed to estimate a company's cash inflows and outflows? A) Operational budget. B) Master budget. C) Capital budget. D) Cash budget. Show Answer Correct Answer: D) Cash budget. 14. Withdrawing more money than you have A) Overdraft. B) Draft. C) Withdraw. D) Underdraft. Show Answer Correct Answer: A) Overdraft. 15. Cost of capital represents: A) Operating cost. B) Cost of production. C) Minimum required rate of return. D) Administrative cost. Show Answer Correct Answer: C) Minimum required rate of return. 16. A negative stockholders' equity may indicate an impending bankruptcy. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 17. Which of the following is a component of financial management? A) Insurance. B) Investing. C) Taxation. D) Budgeting. Show Answer Correct Answer: D) Budgeting. 18. The following are popular form of capital structure except one: A) Equity and capital shares only. B) Equity and debentures only. C) Equity shares, preference shares and debentures. D) Equity shares only. Show Answer Correct Answer: A) Equity and capital shares only. 19. What is the difference between systematic and unsystematic risk? A) Systematic risk affects the entire market; unsystematic risk is specific to individual companies. B) Systematic risk is specific to individual sectors; unsystematic risk affects the entire economy. C) Systematic risk can be eliminated through diversification; unsystematic risk cannot. D) Systematic risk is only related to interest rates; unsystematic risk is related to market trends. Show Answer Correct Answer: A) Systematic risk affects the entire market; unsystematic risk is specific to individual companies. 20. WACC stands for: A) Weighted Average Capital Cost. B) Weighted Average Cost of Capital. C) Weighted Annual Capital Cost. D) None of these. Show Answer Correct Answer: B) Weighted Average Cost of Capital. 21. Federal agency debt A) Short term debt. B) Long term debt. C) All the above. D) None of the above. Show Answer Correct Answer: B) Long term debt. 22. Pam needs to take money out of her account from an ATM what card will she use? A) Credit Card. B) Macy's Card. C) Sam's Card. D) Debit Card. Show Answer Correct Answer: D) Debit Card. 23. Which one is an example of liabilities? A) Investments. B) Savings. C) Unit trusts. D) Utility bills. Show Answer Correct Answer: D) Utility bills. 24. A ..... is a report of the balances in all assets, liability, and owner's equity accounts at the end of a accounting period A) Financial statement. B) Income statement. C) Balance sheet. D) Statement of cash flows. Show Answer Correct Answer: C) Balance sheet. 25. Which of the following decisions affects the size of assets, the profitability and competitiveness of a firm? A) Dividend decision. B) Working capital decision. C) Capital Budgeting decision. D) None of the above. Show Answer Correct Answer: C) Capital Budgeting decision. 26. Growing vegetable in the kitchen garden is an example of ..... A) Real direct income. B) Money income. C) Real indirect income. D) Psychic income. Show Answer Correct Answer: C) Real indirect income. 27. Which of the following statements best represents the "Agency Problem" ? A) Managers might attempt to benefit themselves in terms of salary and perquisites at the expense of shareholders. B) The agency problem results from the separation of management and the ownership of the firm. C) The agency problem may interfere with the implementation of maximizing shareholder wealth. D) All of the above. Show Answer Correct Answer: D) All of the above. ← PreviousRelated 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