This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 9 Financial Management – Quiz 37 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 9 Financial Management Quiz 37 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Trading on equity is possible on A) Debentures. B) Preference shares. C) Equity shares. D) Debentures and preference shares. Show Answer Correct Answer: A) Debentures. 2. Money paid to the state and federal government so that the government can function is ..... A) Taxes. B) Salary. C) Debt. D) Income. Show Answer Correct Answer: A) Taxes. 3. Which financial ratio measures a company's ability to meet its short-term obligations? A) Current ratio. B) Return on equity (ROE). C) Debt-to-equity ratio. D) Gross profit margin. Show Answer Correct Answer: A) Current ratio. 4. Interest Receivable A) Debit. B) Credit. C) All the above. D) None of the above. Show Answer Correct Answer: A) Debit. 5. From the followings which is/are associated with an Investments A) Risk. B) Return. C) Both a & b. D) None of the above. Show Answer Correct Answer: C) Both a & b. 6. Which of the following is true for Secondary Markets? A) Prices are determined by demand-supply match for security in the market. B) Prices are decided by the SEBI. C) Prices are decided by the lead merchant banker. D) Prices are decided by the company. Show Answer Correct Answer: A) Prices are determined by demand-supply match for security in the market. 7. Things you can live without A) Wants. B) Needs. C) Plans. D) Goals. Show Answer Correct Answer: A) Wants. 8. What is the time value of money (TVM)? A) The concept that money available today is worth more than the same amount in the future. B) The concept that money available in the future is worth more than the same amount today. C) The concept that money has a constant value over time. D) The concept that money should be invested in stocks for long-term growth. Show Answer Correct Answer: A) The concept that money available today is worth more than the same amount in the future. 9. The discount factor used to appraise capital investment decisions is a measure of: A) The current high street interest rate. B) The opportunity cost of capital of the business. C) The current inflation rate. D) The opportunity cost of capital of all businesses in the same industry. Show Answer Correct Answer: B) The opportunity cost of capital of the business. 10. ..... represents the short-term liabilities that a business owes to creditors. A) Owner's equity. B) Accounting equation. C) Accounts payable. D) Financial statement. Show Answer Correct Answer: C) Accounts payable. 11. In a hire purchase agreement total interest of Rs 3, 00, 000 was paid for a period of 5 years. In the third year the instalment of Rs 3, 60, 000 was paid out of which Rs 3, 02, 500 was towards principal repayment. What is the amount of interest for third year? A) Rs 60, 000. B) Rs 57, 500. C) Rs 3, 00, 000. D) Rs 2, 500. Show Answer Correct Answer: B) Rs 57, 500. 12. If notes payable increases, the cash flow will be ..... ? A) A. INCREASES. B) B. DECREASES. C) All the above. D) None of the above. Show Answer Correct Answer: A) A. INCREASES. 13. What type of training do most business owners need to participate in? A) Financial literacy training. B) Investment training. C) Personnel management training. D) Financial forecasting training. Show Answer Correct Answer: A) Financial literacy training. 14. Depending on the industry, credit policy can vary from being crucial to being irrelevant. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 15. The n i approach assumed A) Ke is to be same and constant. B) There are no taxes. C) K0 falls as the degree of leverage is increased. D) All of the above. Show Answer Correct Answer: D) All of the above. 16. There are 6 steps to consider before creating a financial plan. 1. Define the short term and long term goal.2. Make an initial budget to achieve each goal.3. Calculate monthly savings needed for each goal.4. Analyse spending behaviour5 ..... 6. Determine income strategies.What is the 5th step? A) Make a list of short term and long term goals. B) Manage spending. C) Set a time frame to achieve each goal. D) Evaluate financial plan. Show Answer Correct Answer: C) Set a time frame to achieve each goal. 17. One of the major disadvantages of a sole proprietorship is A) Unlimited liability to the owner. B) The simplicity of decision making. C) Low organizational costs. D) Low operating costs. Show Answer Correct Answer: A) Unlimited liability to the owner. 18. Which of the following are included in the four C's of credit?(a) Character(b) Capacity(c) Causes(d) Capital(e) Collateral A) , (b), (c), (d). B) , (c), (d), (e). C) , (c), (d), (e). D) , (b), (d), (e). Show Answer Correct Answer: D) , (b), (d), (e). 19. What is the only payment method that does not charge interest or fees? A) Currency (cash). B) Credit Card. C) Debit Card. D) None of the above. Show Answer Correct Answer: A) Currency (cash). 20. Which one of the following forms of business organization is best suited to raising large amounts of capital? A) Sole proprietorship. B) Limited liability company. C) Corporation. D) General partnership. Show Answer Correct Answer: C) Corporation. 21. Measure the value or worth of something A) Standard of Value. B) Store of Value. C) Means of Deferred Payment. D) Conveyance. Show Answer Correct Answer: A) Standard of Value. 22. How many percentage should a person save from their monthly income? A) 5%. B) 8%. C) 10%. D) 20%. Show Answer Correct Answer: C) 10%. 23. Credit card A) Short term debt. B) Long term debt. C) All the above. D) None of the above. Show Answer Correct Answer: A) Short term debt. 24. The main objective of Financial Management on the basis of old concept- A) Maximisation of profit. B) Maximization of wealth. C) Both(a) and (b). D) None of these. Show Answer Correct Answer: A) Maximisation of profit. 25. What is the purpose of a "master budget" in financial management? A) Monitoring day-to-day expenses. B) Estimating overall company profitability. C) Controlling long-term investments. D) Analyzing short-term market trends. Show Answer Correct Answer: B) Estimating overall company profitability. ← 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