This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 9 Financial Management – Quiz 21 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 9 Financial Management Quiz 21 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is the main focus of the money market? A) Promoting liquidity of financial assets. B) Trading short-term instruments. C) Trading long-term assets. D) Issuing new securities. Show Answer Correct Answer: B) Trading short-term instruments. 2. Financial Management is based on three principles. Which of the following is not one of these principles? A) Risk-return principle. B) Fixed costs versus variable costs. C) Cost-benefit principle. D) Time value of money. Show Answer Correct Answer: B) Fixed costs versus variable costs. 3. Which of the following statements is true regarding working capital? A) It represents excess of current liabilities over current assets. B) It is used for day-to-day business operations. C) It finances fixed assets of the business. D) Total liabilities of the business. Show Answer Correct Answer: B) It is used for day-to-day business operations. 4. Pendanaan untuk kegiatan internasional dapat berasal dari tiga sumber utama, kecuali A) Pembiayaan berlipat ganda. B) Pembiayaan ekuitas. C) Pembiayaan utang. D) Pembiayaan intra-perusahaan. Show Answer Correct Answer: A) Pembiayaan berlipat ganda. 5. High receivable turnover rate does not automatically mean good or efficient collection of the company. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 6. Money currently used by different countries A) Currency (bills and coins). B) Check. C) Bank Draft. D) Money Order. Show Answer Correct Answer: A) Currency (bills and coins). 7. A company's IT budget only covers hardware costs A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 8. Based on the example below, which items need to be included in a financial plan?I. InsuranceII. Emergency fundIII. Savings and investmentsIV. Debts management A) II and III. B) I, II and III. C) II, III and IV. D) I, II, III and IV. Show Answer Correct Answer: D) I, II, III and IV. 9. Financial Management is mainly concerned with ..... A) All aspects of acquiring and utilizing financial resources for firms activities. B) Arrangement of funds. C) Efficient Management of every business. D) Profit maximization. Show Answer Correct Answer: A) All aspects of acquiring and utilizing financial resources for firms activities. 10. ..... and ..... carry a fixed rate of interest and are to be paid off irrespective of the firm's revenues A) Debentures, Dividends. B) Debentures, Bonds. C) Dividends, Bonds. D) Dividends, Treasury notes. Show Answer Correct Answer: B) Debentures, Bonds. 11. What is a fundamental concept in financial management? A) Frugality. B) Investment. C) Debt. D) Growth. Show Answer Correct Answer: D) Growth. 12. A project has the following projected cash inflows.Year 1-100, 000Year 2-125, 000Year 3-105, 000Working capital is required to be in place at the start of each year equal to 10% of the cash inflow for that year.The cost of capital is 10%.What is the present value of the working capital? A) $ Nil. B) $ (30, 036). C) $ (2, 735). D) $ 33, 000. Show Answer Correct Answer: C) $ (2, 735). 13. Preparation of a detailed, comprehensive and personalized plan for each company in which the objectives to be achieved and the costs that this will entail are determined, the resources that will be necessary are identified and a deadline is set to make them a reality. A) Valued added. B) Economic indicators. C) Financial planning. D) Efficiency. Show Answer Correct Answer: C) Financial planning. 14. Technological advancements in finance primarily accelerated which outcome for global capital markets? A) Deeper liquidity and faster price discovery. B) Reduced cross-border information flow. C) Slower trade execution across exchanges. D) Elimination of multinational corporations. Show Answer Correct Answer: A) Deeper liquidity and faster price discovery. 15. How does financial management affect standard of living? A) It only affects businesses. B) It decreases standard of living. C) It improves standard of living. D) It has no effect. Show Answer Correct Answer: C) It improves standard of living. 16. Decisions affecting liquidity and profitability of a business A) Short term. B) Long Term Investment decisions. C) All the above. D) None of the above. Show Answer Correct Answer: A) Short term. 17. It is the amount which is earned without investing time, money A) Divident. B) Amount. C) Leverage. D) Return earnings. Show Answer Correct Answer: C) Leverage. 18. Cost of the company fund is the cost of capital A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 19. TVM stands for what? A) Total Valuable of Money. B) Time Value of Money. C) Total Value of Management. D) Time Valuable of Management. Show Answer Correct Answer: B) Time Value of Money. 20. If an employee works 56 hours in one week, and earns $ 14.00 an hour, what would be his gross pay for the week? A) $ 784.00. B) $ 560.00. C) $ 1, 230. D) $ 896.00. Show Answer Correct Answer: D) $ 896.00. 21. A school decides to have larger classes, and examination results suffer as a result. In terms of the 'value for money' framework, which of the following statements is true? A) Economy has increased but efficiency has decreased. B) Efficiency has increased but effectiveness has decreased. C) Economy has increased but effectiveness has decreased. D) Economy has increased but efficiency and effectiveness have decreased. Show Answer Correct Answer: C) Economy has increased but effectiveness has decreased. 22. ..... is simply the interest earned in subsequent periods on the interest earned in prior periods. A) Quoted interest. B) Anticipated interest. C) Simple interest. D) Compound interest. Show Answer Correct Answer: D) Compound interest. 23. Which one of the following financial decisions immediately changes the firm's average cost of capital? A) Invest in a new potential project. B) Employ more debt. C) Store more finished products. D) Increase dividend pay-out ratio. Show Answer Correct Answer: B) Employ more debt. 24. Which is not an example of an unexpected event? A) Car accident. B) Fire. C) Trip to DIsney World. D) Breaking your arm. Show Answer Correct Answer: C) Trip to DIsney World. 25. Which of the statements below is FALSE? A) The cash that the firm generates from its operating decisions (use of its assets) is used to either pay creditors or the owners of the company. B) Cash flow from assets shows the success or failure of the operating decisions. C) Cash flow to owners shows cash paid to owners plus any new borrowing from owners. D) Cash flow to creditors shows a portion of how the firm is financing the operations. Show Answer Correct Answer: C) Cash flow to owners shows cash paid to owners plus any new borrowing from owners. ← 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