This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 9 Financial Management – Quiz 28 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 9 Financial Management Quiz 28 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following provides liquidity to money market instruments by creating a secondary market where they can be traded? A) Discount and Finance House of India. B) National Securities Depository Limited. C) State Bank of India. D) Reserve Bank of India. Show Answer Correct Answer: A) Discount and Finance House of India. 2. What is a consequence of overspending on one project? A) Improved financial planning. B) Increased profits. C) Better resource allocation. D) Lack of finance for other operations. Show Answer Correct Answer: D) Lack of finance for other operations. 3. The concept that value of a rupee to be received in future is less than the value Of a rupee on hand today is known as A) A. Recovery factor concept. B) B time value of money. C) C. Compounding fator concept. D) D. None of these. Show Answer Correct Answer: B) B time value of money. 4. Cost of retained earnings is equal to cost of equity A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 5. A Current asset is cash or any asset that will be exchanged for cash or used within one year. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 6. Solvency refers to: A) The level of cash-flow in a business. B) The extent to which the current assets of a business exceed current liabilities. C) The extent to which current liabilities of a business exceed current assets. D) Short-term financial goals of a business. Show Answer Correct Answer: B) The extent to which the current assets of a business exceed current liabilities. 7. 'if you want higher return there should be higher risk on your hand and vice versa' merupakan prinsip keuangan? A) Risk Aversion. B) Incremental Benefit. C) Risk Return Trade Off. D) Signaling. Show Answer Correct Answer: C) Risk Return Trade Off. 8. High debt equity ratio implies A) Less financial risk. B) High financial risk. C) High earnings/share. D) High working risk. Show Answer Correct Answer: B) High financial risk. 9. A schedule of how much consumers are willing and able to buy at a price A) Needs. B) Wants. C) Supply. D) Demand. Show Answer Correct Answer: D) Demand. 10. Exchange of things for other things, used in olden times, applied in today's world through the barter exchanges A) Barter. B) Cattle. C) Cowrie shell. D) Wampum. Show Answer Correct Answer: A) Barter. 11. What is the focus of the operational plan in corporate management? A) Maximizing employee satisfaction. B) Minimizing production costs. C) Achieving short-and long-term goals. D) Maximizing shareholder wealth. Show Answer Correct Answer: C) Achieving short-and long-term goals. 12. The primary goal of financial management is to: A) Maximize profit. B) Maximize sales. C) Maximize shareholder wealth. D) Minimize costs. Show Answer Correct Answer: C) Maximize shareholder wealth. 13. Convert 35% to a decimal A) 3.5. B) 35.00. C) .35. D) None of the above. Show Answer Correct Answer: C) .35. 14. The following are factors that may affect feasibility of a long-term financial plan except A) Government policy. B) Insurance. C) Interest rate. D) Inflation. Show Answer Correct Answer: B) Insurance. 15. Rasio yang menunjukkan kemampuan perusahaan dalam menyelesaikan kewajiban jangka pendeknya A) Current Ratio. B) Quick Ratio. C) Acid Test Ratio. D) Semua jawaban benar. Show Answer Correct Answer: D) Semua jawaban benar. 16. Cattle, cowrie shells, wampum, hemp A) Commodity Money. B) Currency (bills and coins). C) Check. D) Bank Draft. Show Answer Correct Answer: A) Commodity Money. 17. What are the five key components in the SMART concept in settting financial goals? A) Spesific, Measurable, Attainable, Realistic, Timebound. B) Spesific, Minimise, Allocate, Realistic, Timebound. C) Special, Measurable, Attainable, Reasonable, Timing. D) None of the above. Show Answer Correct Answer: A) Spesific, Measurable, Attainable, Realistic, Timebound. 18. What is the consequence of making only the minimum payment on a credit card? A) Lower credit score. B) Immediate loan approval. C) Higher credit limit. D) No impact on credit score. Show Answer Correct Answer: A) Lower credit score. 19. Net working capital is equal to A) Total assets minus total liabilities. B) Current assets minus total liabilities. C) Total operating capital minus net income. D) Current assets minus current liabilities. Show Answer Correct Answer: D) Current assets minus current liabilities. 20. .... and ..... are the two versions of goals of the financial management of the firm. A) Profit maximisation, Wealth maximization. B) Production maximisation, Sales maximisation. C) Sales maximisation, Profit maximization. D) Value maximisation, Wealth maximisation. Show Answer Correct Answer: A) Profit maximisation, Wealth maximization. 21. To manage school finances effectively, the financial managers should anticipate capital expenditures and maximize maintenance costs. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 22. Suppose you invest $ 1, 000 today, compounded quarterly, with the annual interest rate of 5.00%. What is your investment worth in one year? A) $ 1, 025.00. B) $ 1, 050.95. C) $ $ 1, 051.95. D) $ 1, 150.95. Show Answer Correct Answer: B) $ 1, 050.95. 23. Discuss the importance of budgeting in a family's monthly expenses. A) Budgeting restricts financial growth. B) Budgeting leads to financial instability. C) Budgeting is important in managing a family's finances for planning, controlling expenses, setting goals, allocating resources effectively, and monitoring performance. D) Budgeting is irrelevant in financial management. Show Answer Correct Answer: C) Budgeting is important in managing a family's finances for planning, controlling expenses, setting goals, allocating resources effectively, and monitoring performance. 24. Beta measures the ..... A) Financial risk. B) Market risk. C) Investment risk rate. D) Market and finance risk. Show Answer Correct Answer: C) Investment risk rate. 25. Consistent expense every month A) Flexible expense. B) Fixed expense. C) Income. D) None of the above. Show Answer Correct Answer: B) Fixed expense. ← 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