This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 9 Financial Management – Quiz 35 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 9 Financial Management Quiz 35 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Below are the characteristics of excessive spending, EXCEPT ..... A) Cash is too large. B) So many people are unemployed. C) Cash is too small to pay its obligations. D) Too much raw. Show Answer Correct Answer: C) Cash is too small to pay its obligations. 2. What is a SHORT term goal? A) A financial goal you can reach within 1 year or less than 12 months. B) A financial goal you can achieve in more than a year ( over 12 months). C) All the above. D) None of the above. Show Answer Correct Answer: A) A financial goal you can reach within 1 year or less than 12 months. 3. I am opening a new bank account today to deposit my birthday money. A) Spending. B) Saving. C) Earning. D) Donating. Show Answer Correct Answer: B) Saving. 4. The value of the business on a specific date is referred to as ..... A) Asset. B) Liability. C) Owner's equity. D) Debt. Show Answer Correct Answer: C) Owner's equity. 5. How does a low credit score effect the cost of a loan? A) It will be less expensive. B) It will be more expensive. C) All the above. D) None of the above. Show Answer Correct Answer: B) It will be more expensive. 6. The decisions of investing in long term or fixed assets on the basis of cost-benefit analysis or risk-return analysis are known as: A) Working capital decisions. B) Financial Decisions. C) Capital budgeting decisions. D) None of these. Show Answer Correct Answer: C) Capital budgeting decisions. 7. Higher level of competition neccesitates A) More fixed capital. B) More working capital. C) No working capital. D) Less working capital. Show Answer Correct Answer: B) More working capital. 8. The controller's responsibilities are primarily in nature, while the treasurer's responsibilities are primarily related to . A) Operational; financial management. B) Financial management; accounting. C) Accounting; financial management. D) Financial management; operations. Show Answer Correct Answer: C) Accounting; financial management. 9. Purchased, immediately paid for. Ex. Store card, gift card, and multi currency prepaid card A) Prepaid Cash Card. B) Plastic Money. C) Cash Card. D) Debit Card. Show Answer Correct Answer: A) Prepaid Cash Card. 10. A bank offers the following investments. Which do you prefer? A) A stated rate of 10% continuously compounded. B) Stated rate of 10% compounded annually. C) A stated rate of 10% compounded semi-annually. D) A rate of 10% simple interest. Show Answer Correct Answer: A) A stated rate of 10% continuously compounded. 11. During the summer, I work at the pool. A) Spending. B) Earning. C) Investing. D) Donating. Show Answer Correct Answer: B) Earning. 12. What out of the following, financial planning helps to achieve? A) Arrangement of material. B) Financial control. C) Arrangement of machinery. D) All of above. Show Answer Correct Answer: B) Financial control. 13. Which of the following is NOT a component of working capital management? A) Inventory management. B) Cash management. C) Capital structure decisions. D) Accounts receivable management. Show Answer Correct Answer: B) Cash management. 14. Which of the following is/are correct?Yang manakah kenyataan berikut adalah benar? A) Fixed expense-dividends / Belanja tetap-dividen. B) Variable expense-rent / Belanja berubah-sewa. C) Active income-Allowances / Pendapatan aktif-elaun. D) Passive income-allowances / Pendapatan pasif-elaun. Show Answer Correct Answer: C) Active income-Allowances / Pendapatan aktif-elaun. 15. Financial management function that managing the funds earned from active spending is called ..... A) Planning function of funds. B) Obtaining of funds. C) Allocation of funds. D) Earned of funds. Show Answer Correct Answer: C) Allocation of funds. 16. Which of following does not a type of direct foreign investment? A) Franchising. B) International trade. C) Joint ventures. D) Acquisition of existing operators. Show Answer Correct Answer: B) International trade. 17. Apakah maksud 'S' dalam matlamat kewangan SMART? A) Berdaya tahan. B) Spesifik. C) Ringkas. D) Strategik. Show Answer Correct Answer: B) Spesifik. 18. AW Co needs to have $ 100, 000 working capital in place immediately for the start of a 2-year project. The amount will stay constant in real terms. Inflation is running at 10% per annum, and AW Co's money cost of capital is 12%.What is the present value of the cash flows relating to working capital? A) $ (21, 260). B) $ (20, 300). C) $ (108, 730). D) $ (4, 090). Show Answer Correct Answer: A) $ (21, 260). 19. Type of finance which concerns with revenue and disbursement of Government. A) Private Finance. B) Public Finance. C) Personal Finance. D) Corporate Finance. Show Answer Correct Answer: B) Public Finance. 20. M Co will receive a perpetuity starting in 2 years' time of $ 10, 000 per annum, increasing by the rate of inflation (which is 2%).What is the present value of this perpetuity assuming a money cost of capital of 10.2%? A) $ 90, 910. B) $ 125, 000. C) $ 115, 740. D) $ 74, 403. Show Answer Correct Answer: C) $ 115, 740. 21. The management of money and financial decisions for a person or family including budgeting, investments, retirement planning and investments is ..... A) Investment. B) Personal Finance. C) Economics. D) Savings. Show Answer Correct Answer: B) Personal Finance. 22. The basic format of an income statement is A) Sales-Expenses = Profits. B) Income-Expenses = EBIT. C) Sales-Liabilities = Profits. D) Assets-Liabilities = Profits. Show Answer Correct Answer: A) Sales-Expenses = Profits. 23. A ratio that measures the extent to which a company generates a profit. This analysis focuses on the relationship between revenues and expenses and on the level of profits relative to the size of investment in the business. A) Liquidity Ratio. B) Asset Utilization Ratio. C) Leverage Ratio. D) Profitability Ratio. Show Answer Correct Answer: D) Profitability Ratio. 24. Dividend decision deals with A) Allocation of capital. B) Payment of dividends to shareholders. C) Raising funds. D) Managing cash. Show Answer Correct Answer: B) Payment of dividends to shareholders. 25. Which of the following is the primary objective of financial decision-making in a corporation? A) Maximizing current sales revenue. B) Maximizing corporate debt. C) Maximizing shareholders wealth. D) Increasing salaries for managers. Show Answer Correct Answer: C) Maximizing shareholders wealth. ← 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