This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 9 Financial Management – Quiz 31 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 9 Financial Management Quiz 31 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Rate of return on capital is exceptionally high in A) Under capitalisation. B) Over capitalisation. C) Working capital. D) Fixed capital. Show Answer Correct Answer: A) Under capitalisation. 2. Managing the firm's short-term financing activities is known as ..... A) Capital budgeting. B) Capital structure. C) Accounts receivable management. D) Working capital management. Show Answer Correct Answer: D) Working capital management. 3. Sriram Industries Ltd. issued 10, 000, 10% Debentures of Rs.100 each. The tax rate is 50%. what would be the after-tax cost of debt if the debentures are issued at a premium of 10%? A) 4.55%. B) 5.44%. C) 4.45%. D) 5.54%. Show Answer Correct Answer: A) 4.55%. 4. Chris gets a monthly statement each month to pay his ..... A) Barber. B) Credit Card. C) Debit card. D) Saving account. Show Answer Correct Answer: B) Credit Card. 5. When two or more companies combine into one company, is called A) Acquisition. B) Merger. C) Takeover. D) Hostile Combination. Show Answer Correct Answer: B) Merger. 6. What does "saving" typically mean in personal finance? A) Spending all available income. B) Setting aside money for future use. C) Borrowing money from a bank. D) Investing in the stock market. Show Answer Correct Answer: B) Setting aside money for future use. 7. The increasing percentage ownership of public corporations by institutional investors has A) Had no effect on corporate management. B) Created higher returns for the stock market in general. C) Created more pressure on public companies to manage their firms more efficiently. D) Taken away the voice of the individual investor. Show Answer Correct Answer: C) Created more pressure on public companies to manage their firms more efficiently. 8. Paying the minimum on credit card bills is a good money management practice. A) Fact. B) Fiction. C) All the above. D) None of the above. Show Answer Correct Answer: B) Fiction. 9. What are the common financial ratios used to analyze a company's performance? A) Sales ratios, credit risk ratios, asset management ratios. B) Inventory turnover ratios, debt coverage ratios, capital structure ratios. C) Profitability ratios, liquidity ratios, leverage ratios, efficiency ratios. D) Growth ratios, solvency ratios, market value ratios. Show Answer Correct Answer: C) Profitability ratios, liquidity ratios, leverage ratios, efficiency ratios. 10. An empty jar can help me with this situation. A) Spending. B) Saving. C) Donating. D) Investing. Show Answer Correct Answer: B) Saving. 11. ..... is the system of recording business transactions, and analyzing, verifying, and reporting the results. A) Accounts receivable. B) Accounting. C) Generally accepted accounting principals (GAAP). D) Fixed assets. Show Answer Correct Answer: B) Accounting. 12. The non discounting method that ignores the fact that profit can be reinvested A) Urgency. B) Pay back period. C) Average rate of return. D) None of the above. Show Answer Correct Answer: C) Average rate of return. 13. Market value of shares are decided by A) The respective companies. B) The investment market. C) The government. D) The shareholders. Show Answer Correct Answer: B) The investment market. 14. Dalam menghitung COGS pada perusahaan manufaktur adalah: A) Saldo awal persediaan + harga perolehan barang yang dibeli-persediaan akhir. B) Saldo awal persediaan barang jadi + harga pokok barang yang diproduksi-saldo akhir. C) Sales-expenses. D) EBIT-Interest expenses. Show Answer Correct Answer: B) Saldo awal persediaan barang jadi + harga pokok barang yang diproduksi-saldo akhir. 15. Financial decisions are mainly concerned with: A) Raising funds. B) Using funds effectively. C) Both a and b. D) None of the above. Show Answer Correct Answer: C) Both a and b. 16. Yang BUKAN merupakan Laporan Keuangan adalah: A) Laporan Neraca (Balance Sheet). B) Laporan Laba Rugi (Income Statement). C) Laporan Arus Kas (Cash Flow Statement). D) Laporan Modal kerja (Net working Capital Statement). Show Answer Correct Answer: D) Laporan Modal kerja (Net working Capital Statement). 17. Which one of the following is NOT a main concerned area of Financial Management is: A) Dividend decision. B) Financing decisions. C) Corporate decisions. D) Investment decisions. Show Answer Correct Answer: C) Corporate decisions. 18. Who is someone who acquires goods and services for his or her own personal use? A) Producer. B) Consumer. C) Market economy. D) Seller. E) Superman. Show Answer Correct Answer: B) Consumer. 19. Cost of debt is usually ..... than cost of equity. A) Higher. B) Lower. C) Equal. D) Unrelated. Show Answer Correct Answer: B) Lower. 20. India's foreign exchange rate system is ..... A) Fixed target of band. B) Free float. C) Fixed system. D) Managed float. Show Answer Correct Answer: D) Managed float. 21. Profit or loss is defined as "the total of income less expenses, excluding the components of other comprehensive income" . A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 22. Mainly general type of Direct Foreign Investment (DFI) is A) Franchising. B) Patent. C) International trade. D) Establishment of new subsidiaries. Show Answer Correct Answer: D) Establishment of new subsidiaries. 23. A corporation is A) Owned by stockholders who enjoy the privilege of limited liability. B) Easily divisible between owners. C) A separate legal entity with perpetual life. D) All of the above. Show Answer Correct Answer: D) All of the above. 24. Future cashflow is discounted at ..... A) Cost of capital. B) NRR. C) Rate of FMP. D) Cost of equity capital only. Show Answer Correct Answer: A) Cost of capital. 25. What is a loan? A) A gift of money. B) Money borrowed that must be repaid with interest. C) A type of insurance. D) An investment in stocks. Show Answer Correct Answer: B) Money borrowed that must be repaid with interest. ← 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