This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 9 Financial Management – Quiz 14 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 9 Financial Management Quiz 14 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The objective of wealth maximization takes into consideration: A) Risk related to uncertainty of returns. B) Timing of expected returns. C) Amount of returns expected. D) All of the above. Show Answer Correct Answer: D) All of the above. 2. Long term investment decisions A) Capital budgeting decisions. B) Short term financing. C) All the above. D) None of the above. Show Answer Correct Answer: A) Capital budgeting decisions. 3. A ..... is set up so that employees of corporations or governments can receive income after retirement. A) Life insurance company. B) Savings bank. C) Pension fund. D) Credit union. Show Answer Correct Answer: C) Pension fund. 4. Which of the following is an advantage of preference shares? A) Long-term sources. B) Fixed rate of interest. C) Trade on equity. D) Redemptions. Show Answer Correct Answer: D) Redemptions. 5. When risk increase, the return will A) Increase. B) Decrease. C) No change. D) None. Show Answer Correct Answer: A) Increase. 6. What is the '50/30/20 rule' in budgeting? A) 50% needs, 30% wants, 20% savings and debt repayment. B) 50% savings, 30% needs, 20% wants. C) 50% wants, 30% savings, 20% needs. D) 50% debt repayment, 30% savings, 20% need. Show Answer Correct Answer: A) 50% needs, 30% wants, 20% savings and debt repayment. 7. Encik Rosnan works as a teacher. He earns RM5000 a month. The following list shows the monthly expenditure of Encik Rosnan.House rent = RM750Food = RM 1400Transportation = RM600Hiburan = RM500Others = RM300Calculate the montly cash flow of Encik Rosnan. A) RM1450. B) RM1350. C) RM1150. D) RM1050. Show Answer Correct Answer: A) RM1450. 8. What is a credit referring to a checking account? A) Deposit or an addition to the account. B) Subtraction or a minus to the account. C) What is on your credit report. D) When you enter your pin number. Show Answer Correct Answer: A) Deposit or an addition to the account. 9. John sold goods for cash $ 20, 000. It is an example of ..... A) Personal Account. B) Real Account. C) Natural Account. D) None of the above. Show Answer Correct Answer: B) Real Account. 10. Portion of Profit distributed to the shareholder is A) Interest. B) Dividend. C) Tax. D) Earnings. Show Answer Correct Answer: B) Dividend. 11. Financial decisions involves A) Investment, financing and dividend decisions. B) Investment, financing, and sales decisons. C) Financing, dividend and cash decisions. D) None of the above. Show Answer Correct Answer: A) Investment, financing and dividend decisions. 12. Which driver most directly reduces geographical barriers for firms operating globally? A) Mandatory localisation laws in each country. B) Advanced IT platforms and modern logistics. C) Higher corporate tax rates internationally. D) Decline of multinational corporations worldwide. Show Answer Correct Answer: B) Advanced IT platforms and modern logistics. 13. A plan for managing money during a given period of time A) Goal. B) Objective. C) Budget. D) Value. Show Answer Correct Answer: C) Budget. 14. What is a list of all accounts and their account numbers? A) General Journal. B) General Ledger. C) Chart of Accounts. D) Trial Balance. Show Answer Correct Answer: C) Chart of Accounts. 15. "Machinery is not a financial asset" . Is the statement correct? A) Yes. B) No. C) All the above. D) None of the above. Show Answer Correct Answer: A) Yes. 16. Which is the cheapest Source of Finance A) Debt. B) Equity. C) All the above. D) None of the above. Show Answer Correct Answer: A) Debt. 17. Paying bills through UPI is an example of: A) Borrowing. B) Earning. C) Digital transaction. D) Investing. Show Answer Correct Answer: C) Digital transaction. 18. What has the same meaning as negative cash flow? A) Deficit. B) Surplus. C) All the above. D) None of the above. Show Answer Correct Answer: A) Deficit. 19. What is an example of a VARIABLE expense? A) Cable Bill. B) Water/electricity bill. C) Christmas gifts. D) None of the above. Show Answer Correct Answer: B) Water/electricity bill. 20. Strategi investasi yang bijaksana membantu dalam ..... A) Membangun kekayaan jangka pendek. B) Menyusun anggaran keuangan. C) Mendukung pencapaian tujuan finansial. D) Mengidentifikasi masalah keuangan. Show Answer Correct Answer: C) Mendukung pencapaian tujuan finansial. 21. A ratio that measures the amount of debt that a company uses to buy more assets. An excessive ratio increases the risk of failure, since it becomes more difficult to repay debt. A) Leverage Ratio. B) Liquidity Ratio. C) Profitability Ratio. D) Utilization Ratio. Show Answer Correct Answer: A) Leverage Ratio. 22. Working capital is of- A) High risk. B) Flexible. C) Depreciable. D) Long-term. Show Answer Correct Answer: B) Flexible. 23. Jenna buys a keychain for $ 4.50. Sales tax is 6.5%. What is the TOTAL PRICE? A) .30. B) .29. C) .28. D) .31. Show Answer Correct Answer: B) .29. 24. Which of the following is not a short-term financial goal? A) Buying a computer. B) Buying a furniture. C) Saving for retirement. D) Settling credit card payment. Show Answer Correct Answer: C) Saving for retirement. 25. ..... varies inversely with profitability. A) Liquidity. B) Risk. C) Accounts. D) Trade. Show Answer Correct Answer: A) Liquidity. ← PreviousNext →Related 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 8Class 12 Business Studies Chapter 9 Financial Management Quiz 9Class 12 Business Studies Chapter 9 Financial Management Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books