This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 9 Financial Management – Quiz 24 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 9 Financial Management Quiz 24 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which capital budgeting technique is generally preferred because it considers the time value of money and results in a value representing the expected change in wealth? A) Payback Period. B) Average Rate of Return (ARR). C) Internal Rate of Return (IRR). D) Net Present Value (NPV). Show Answer Correct Answer: D) Net Present Value (NPV). 2. The main variables of the TVM equation are A) Present value, future value, time, interest rate, and payment. B) Present value, future value, perpetuity, interest rate, and payment. C) Present value, future value, time, annuity, and interest rate. D) Present value, future value, perpetuity, interest rate, and principal. Show Answer Correct Answer: A) Present value, future value, time, interest rate, and payment. 3. The scope of financial management mainly covers: A) Marketing and promotion. B) Investment, financing, and dividend decisions. C) Recruitment and training. D) Office administration. Show Answer Correct Answer: B) Investment, financing, and dividend decisions. 4. Pertains to Current Assets and Liabilities A) Investing Activities. B) Operating Activities. C) Financing Activities. D) None of the above. Show Answer Correct Answer: B) Operating Activities. 5. EBIT is usually the same thing as A) Funds provided by operations. B) Earnings before taxes. C) Net income. D) Operating profit. Show Answer Correct Answer: D) Operating profit. 6. In 2014, 45% of Division I football programs lost money. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 7. Financial Planning helps in ..... A) Managing Business. B) Managing Human Resources. C) Forecasting Business Situations. D) All of the above. Show Answer Correct Answer: C) Forecasting Business Situations. 8. This ratio shows how well a company can convert its investment in assets into profits. A) Liquidity Ratio. B) Asset Turn-over Ratio. C) Return on Asset. D) Profitability Ratio. Show Answer Correct Answer: C) Return on Asset. 9. A company considering a capital investment of Rs 60, 00, 000. The investment estimates cashflow to the company Rs 10, 00, 000, 15, 00, 000, 20, 00, 000, 25, 00, 000 and 30, 00, 000 for 1-5 years respectively. Assuming 10% as cost of capital calculate the NPV of the project. A) Rs 40, 00, 000. B) Rs 1 crore. C) Rs 12, 20, 500. D) Rs 72, 20, 500. Show Answer Correct Answer: C) Rs 12, 20, 500. 10. Cash at bank is an example of A) Current asset. B) Current liability. C) More of current asset less of current liability. D) Less of current asset more of current liability. Show Answer Correct Answer: A) Current asset. 11. Which of the following best describes Murabaha as a source of finance within the Islamic banking model? A) A form of trade credit or loan. B) The equivalent of lease finance. C) A special kind of partnership where one partner gives money to another for investing it in a commercial enterprise. D) A relationship between two or more parties, who contribute capital to a business, and divide the net profit and loss pro-rata. Show Answer Correct Answer: A) A form of trade credit or loan. 12. Which of the following is an investment opportunity mentioned? A) Investing in stocks. B) Investing in savings accounts. C) Investing in collectibles. D) Investing in bonds. Show Answer Correct Answer: A) Investing in stocks. 13. Cannot be controlled and that must be paid to operate a business. They include depreciation on buildings and equipment and salaries paid to managers A) COMMITTED. B) DISCRETIONARY. C) Controllable. D) None of the above. Show Answer Correct Answer: A) COMMITTED. 14. The main objective of financial management is A) (a)Profit Maximisation. B) B) Wealth Maximisation. C) C) Ensuring availability of finance. D) (d) None of the above. Show Answer Correct Answer: B) B) Wealth Maximisation. 15. An example of direct real income is: A) Skill of family member. B) Fringe benefits. C) Barter system. D) Buying a houseRead. Show Answer Correct Answer: A) Skill of family member. 16. The real rate is 2.50% and inflation is 3.25%. What is the approximate nominal rate? A) 5.65%. B) 5.25%. C) 3.25%. D) 5.75%. Show Answer Correct Answer: D) 5.75%. 17. Through them we can extract an analysis and in line with others, analyze the economic evolution. A) Monetary Politics. B) Profit maximization. C) Financial Planning. D) Economic indicators. Show Answer Correct Answer: D) Economic indicators. 18. If you take out a loan from a bank, you will be charged ..... A) For principal but not interest. B) For interest but not principal. C) For both principal and interest. D) For interest only. Show Answer Correct Answer: C) For both principal and interest. 19. The basic objective of finance manager is A) Maximising business's profit. B) Maximising size of organization. C) Maximising wealth of organization. D) All of the above. Show Answer Correct Answer: C) Maximising wealth of organization. 20. Issued by companies (businesses) drawn on their current/checking account with a bank A) Business Check. B) Personal Check. C) Traveler's Check. D) Certified Check. Show Answer Correct Answer: A) Business Check. 21. Money that is subtracted from one's bank account during a purchase is considered A) Loan. B) Income. C) Taxes. D) Debit. Show Answer Correct Answer: D) Debit. 22. Berapakah idealnya batas maksimal cicilan utang per bulan kita dibandingkan dengan pendapatan? A) 20%. B) 30%. C) 40%. D) None of the above. Show Answer Correct Answer: B) 30%. 23. Which of the following is a key component of financial management? A) Human resource training. B) Managing customer relationships. C) Budgeting and cash flow management. D) Product development. Show Answer Correct Answer: C) Budgeting and cash flow management. 24. The primary goal of financial manager is A) To maximise return. B) To minimize risk. C) To maximize the shareholder's wealth. D) To maximize the stakeholder's wealth. Show Answer Correct Answer: C) To maximize the shareholder's wealth. 25. It also refers to the firm's speed or pace in turning over accounts receivable, inventory and long-term assets. A) ASSET UTILIZATION OR ACTIVITY. B) DEBT-UTILIZATION OR LEVERAGE. C) All the above. D) None of the above. Show Answer Correct Answer: A) ASSET UTILIZATION OR ACTIVITY. ← 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