This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 9 Financial Management – Quiz 30 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 9 Financial Management Quiz 30 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The most popular alternative to NPV for capital budgeting decisions is the ..... method. A) Internal rate of return (IRR). B) Payback period. C) Discounted payback period. D) Profitability index. Show Answer Correct Answer: A) Internal rate of return (IRR). 2. Example of diff countries using plastic polymer A) Canada, Brunei, Israel, Taiwan, New Zealand. B) Japan, China, India, Indonesia, Malaysia. C) Nepal, United Kingon, New Jersey, New York, Virginia. D) Philippines, Hongkong, China, Japan, Malaysia. Show Answer Correct Answer: A) Canada, Brunei, Israel, Taiwan, New Zealand. 3. Which of the following cost of capital requires tax adjustments? A) Cost of equity shares. B) Cost of preference shares. C) Cost of Debentures. D) Cost of Retained earnings. Show Answer Correct Answer: C) Cost of Debentures. 4. While calculating the WACC, cost of each component of the capital is weighted- A) In the ratio of 1:2:3:4. B) By the relative proportion of that type of funds in the capital structure. C) By the relative proportion of that type of funds to total assets in the company. D) None. Show Answer Correct Answer: B) By the relative proportion of that type of funds in the capital structure. 5. Your ..... is the amount of money in your account at any time or the amount of money you still owe on a purchase that you make monthly payments on like a car/house. A) Budget. B) Salary. C) Balance. D) Net Income. Show Answer Correct Answer: C) Balance. 6. Asset, liability and equity accounts are extended to A) Balance sheet section. B) Income statement section. C) Retained earnings. D) Trial balance. Show Answer Correct Answer: A) Balance sheet section. 7. What is the primary goal of financial managers? A) Minimizing debt. B) Maximizing profits. C) Maintaining liquidity. D) Increasing cash flow. Show Answer Correct Answer: B) Maximizing profits. 8. Financial management came into existence as a separate field of study from ..... ? A) 19th century. B) 21st century. C) 20th century. D) None of these. Show Answer Correct Answer: C) 20th century. 9. What is the role of corporate planning in managing business finances? A) Forecasting and budgeting for flexibility. B) Ensuring compliance with labor laws. C) Maximizing advertising expenditure. D) Minimizing employee turnover. Show Answer Correct Answer: A) Forecasting and budgeting for flexibility. 10. Q6) What external factor can influence an individual's financial plan in terms of investment decisions? A) Personal hobbies. B) Family traditions. C) Legislative changes. D) Spending habits. Show Answer Correct Answer: C) Legislative changes. 11. For an unlevered firm, the cost of capital can be determined by using the ..... A) Yield on the traded debt. B) Capital Asset Pricing Model. C) Dividend yield. D) Preferred stock yield. Show Answer Correct Answer: B) Capital Asset Pricing Model. 12. The ..... function focuses on raising capital to support a company's operations and investment programs. A) Financing. B) Capital budgeting. C) Corporate governance. D) Risk management. Show Answer Correct Answer: A) Financing. 13. In constant growth model, the value of equity share is sensitive to growth rate. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 14. Used for exchange of goods and services A) Medium of Exchange. B) Standard of Value. C) Store of Value. D) Means of Deferred Payment. Show Answer Correct Answer: A) Medium of Exchange. 15. Which of the following best describes the main purpose of financial management in an organization?? A) A) Minimizing tax payments. B) B) Maximizing shareholder value. C) C) Reducing the number of employees. D) None of the above. Show Answer Correct Answer: B) B) Maximizing shareholder value. 16. A firm operating in multiple countries faces which primary currency-related challenge compared to a single-country firm? A) Stable cash flows with predictable exchange rates. B) Simple pricing and uniform accounting entries. C) Managing conversions and volatility across several currencies. D) No need for hedging or derivative contracts. Show Answer Correct Answer: C) Managing conversions and volatility across several currencies. 17. Financial leverage refers to the rate of change in earnings per share for a given change in earnings ..... A) Before tax. B) Before interest. C) Before interest and tax. D) After interest and tax. Show Answer Correct Answer: C) Before interest and tax. 18. The primary aim of financial management is ..... A) Wealth maximisation. B) Increase the share price. C) Both A and B. D) Distributing maximum dividend. Show Answer Correct Answer: C) Both A and B. 19. Financial management has a general meaning in the context of the family for the management of ..... A) Income. B) Business. C) Business. D) Life. Show Answer Correct Answer: A) Income. 20. With the help of the financial planning a situation of continuous ..... can be maintained. A) Minimum Capital. B) Liquidity. C) Maximum Capital. D) (b) and (c). Show Answer Correct Answer: B) Liquidity. 21. Wealth in the form of money or other assets owned by a person or organization or available or contributed for a particular purpose such as starting a company or investing. A) Consumer. B) Seller. C) Capital. D) Demand. Show Answer Correct Answer: C) Capital. 22. The factors involved in setting a dividend policy include all of the following except A) Restrictive covenants in a bond indenture. B) Growth prospects. C) The legal prohibition on paying dividend which exceed current earnings. D) None of above. Show Answer Correct Answer: C) The legal prohibition on paying dividend which exceed current earnings. 23. .... is the source of finance where the banker may allow the borrower to overdraw on his account with or without Security. A) Cash credit. B) Bank overdrafts. C) Loans. D) Bills discounting. Show Answer Correct Answer: B) Bank overdrafts. 24. What is a key characteristic of venture capital? A) Low risk and low return. B) High risk and high return. C) Short-term investment focus. D) Guaranteed returns. Show Answer Correct Answer: B) High risk and high return. 25. Which of the following is the wrong key component in SMART financial goals?Yang manakah merupakan komponen matlamat kewangan SMART yang salah? A) T-Time-bound / Jangka masa ditetapkan. B) S-Specific / Spesifik. C) A-Attainable / Boleh dicapai. D) R-Review / Mengkaji semula. E) M-Measureable / Boleh diukur. Show Answer Correct Answer: D) R-Review / Mengkaji semula. ← 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