This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 9 Financial Management – Quiz 26 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 9 Financial Management Quiz 26 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Information systems involve: A) Only computers. B) People and processes. C) Only technology. D) Only processes. Show Answer Correct Answer: B) People and processes. 2. What type of skills is financial management training designed to help cultivate? A) Financial planning and analysis. B) Cost analysis and budgeting. C) Risk management and forecasting. D) Marketing and customer service. Show Answer Correct Answer: A) Financial planning and analysis. 3. Which of the following are correct advantages of the IRR approach to investment appraisal, and which are not?1. Clear decision rule2. Takes into account the time value of money3. Assumes funds are reinvested at the IRR4. Considers the whole project A) Correct, Correct, Incorrect, Incorrect. B) Incorrect, Correct, Correct, Correct. C) Incorrect, , Correct, Incorrect, Correct,. D) Correct, Incorrect, Correct, Correct. Show Answer Correct Answer: C) Incorrect, , Correct, Incorrect, Correct,. 4. Who might provide expert advice on tax planning and financial strategies to a business? A) Human Resources Manager. B) Financial Analyst. C) Operations Manager. D) Management Consultant. Show Answer Correct Answer: B) Financial Analyst. 5. Your firm intends to finance the purchase of a new construction crane. The cost is $ 1, 500, 000. What is the size of the first payment if the crane is financed with an interest-only loan at an annual rate of 8.50%? A) $ 228, 611.56. B) $ 127, 550.00. C) $ 3, 391, 475.16. D) $ 127, 500.00. Show Answer Correct Answer: D) $ 127, 500.00. 6. Which technique in financial management enable us to take investment/expansion decisions? A) Capital Structure. B) Ratio Analysis. C) Working Capital Management. D) Capital Budgeting. Show Answer Correct Answer: D) Capital Budgeting. 7. How does effective cash flow management impact a company's growth? A) It allows for reinvestment in business opportunities. B) It reduces the need for customer service. C) It has no impact on growth. D) It increases the number of employees. Show Answer Correct Answer: A) It allows for reinvestment in business opportunities. 8. Higher Inventory to be maintained when more working capital is required. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 9. Earning interest on interest is called A) Extra Interest. B) Simple Interest. C) Inflation Interest. D) Compound Interest. Show Answer Correct Answer: D) Compound Interest. 10. What agency is responsible for collecting federal income taxes for the US government? A) Internal Revenue Service (IRS). B) NC Department of Revenue. C) NC Department of Agriculture. D) None of the above. Show Answer Correct Answer: A) Internal Revenue Service (IRS). 11. Assets that are depleted in one run revolve in the production process and turnover process in a short time is called ..... A) Fixed assets. B) Current assets. C) Capital. D) Fixed capital. Show Answer Correct Answer: B) Current assets. 12. Cash Management is part of A) Capital Structure Decisions. B) Capital Budgeting Decisions. C) Dividend Decisions. D) Working Capital Management Decisions. Show Answer Correct Answer: D) Working Capital Management Decisions. 13. It is considered to be the expansive goal of the firm. A) Valuation Approach. B) Maximization of Shareholder's Wealth. C) Social Responsibility. D) Ethical Behavior. Show Answer Correct Answer: B) Maximization of Shareholder's Wealth. 14. Main objective is to keep down ..... in inventories A) A. Capital investment. B) B. Excessive carrying cost. C) C. Risk of liquidity. D) D . None of above. Show Answer Correct Answer: A) A. Capital investment. 15. Why is financial management training important? A) It can help increase profits. B) It is a waste of resources. C) It can help enhance corporate and personal wealth. D) It can help reduce department costs. Show Answer Correct Answer: A) It can help increase profits. 16. Cost of capital is also known as A) Rate of return. B) Required rate of return. C) Rate of investment. D) Accounting rate of return. Show Answer Correct Answer: B) Required rate of return. 17. The document that lenders ask for as a guarantee that a loan will be paid. A) Interest. B) References. C) Collateral. D) Advanced Payment. Show Answer Correct Answer: C) Collateral. 18. Which of the following figure is irrelevant while calculating cost of redeemable preference shares? A) Floatation cost. B) Discount. C) EPS. D) Net proceeds. Show Answer Correct Answer: C) EPS. 19. It is a kind of bank with the motive of profit earning, and for this purpose, it performs the functions of accepting the deposits of the public and lends them the loan. A) Thrift Bank. B) Rural Bank. C) Commercial Bank. D) Universal Bank. Show Answer Correct Answer: C) Commercial Bank. 20. It means that the main goal of financial management is to maximize not profit alone, but the maximization of overall value of the firm. A) VALUATION APPROACH. B) MAXIMIZATION OF SHAREHOLDERS' WEALTH. C) All the above. D) None of the above. Show Answer Correct Answer: A) VALUATION APPROACH. 21. The Payback Period (PBP) will always select the investment that A) Gives the highest rate of return. B) Returns the cost of investment first. C) Has the highest total net cash flow. D) None of the above. Show Answer Correct Answer: B) Returns the cost of investment first. 22. What is Repayment Capacity? A) The term of a loan. B) A borrower's ability to repay a loan based on income and existing debts. C) The total amount of a loan. D) The interest rate on a loan. Show Answer Correct Answer: B) A borrower's ability to repay a loan based on income and existing debts. 23. Currency appreciation occurs when: A) The value of one currency rises relative to another currency. B) The value of all currencies rise relative to gold. C) The value of one currency falls relative to another currency. D) The value of all currencies fall relative to gold. Show Answer Correct Answer: A) The value of one currency rises relative to another currency. 24. What does a "SMART" goal in financial planning stand for? A) Simple, Manageable, Active, Real, Time-free. B) Secure, Maintainable, Accurate, Reliable, Tested. C) Specific, Measurable, Achievable, Relevant, Time-bound. D) Savings, Money, Assets, Risk, Taxes. Show Answer Correct Answer: C) Specific, Measurable, Achievable, Relevant, Time-bound. 25. Which one of the following is least likely to be an agency problem? A) Increasing the size of a firm. B) Concentrating on maximizing current profits. C) Closing a division with net losses. D) Increasing the market value of the firm's shares. E) Obtaining a patent for a new product. Show Answer Correct Answer: D) Increasing the market value of the firm's shares. ← 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