This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 9 Financial Management – Quiz 38 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 9 Financial Management Quiz 38 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What do financing decisions in financial management primarily involve? A) Deciding on product pricing strategies. B) Choosing between debt, equity, or hybrid instruments to raise funds. C) Determining employee compensation packages. D) Selecting new market entry points. Show Answer Correct Answer: B) Choosing between debt, equity, or hybrid instruments to raise funds. 2. What is the primary purpose of creating a budget? A) To track your expenses. B) To save money for future goals. C) To ensure you don't overspend. D) All of the above. Show Answer Correct Answer: D) All of the above. 3. Which type of bank is FOR PROFIT and run by its shareholders? A) Credit unions. B) Commercial Banks. C) All the above. D) None of the above. Show Answer Correct Answer: B) Commercial Banks. 4. Sara wants to save up to buy a kindle for reading. A kindle costs about $ 104.00 If Sara earns $ 10 a week for watering her neighbors trees how many weeks does Sara have to work to earn enough money? A) 10 weeks. B) 11 weeks. C) 5 weeks. D) 20 weeks. E) 15 weeks. Show Answer Correct Answer: B) 11 weeks. 5. .... is an agreement between two parties whereby an owner of the Asset grants another person use of the asset for specified period in consideration of a payment of a charge. A) Lease. B) Hire purchase. C) Installment purchase. D) Loan. Show Answer Correct Answer: A) Lease. 6. Compound Value also Called A) Present Value. B) Future Value. C) Net Value. D) Both a & b. Show Answer Correct Answer: B) Future Value. 7. Treasurer performs the functions of which of the following functions: A) Credit management. B) Cash management. C) Procurement of essential funds. D) All of these. Show Answer Correct Answer: D) All of these. 8. Hasnah wants to buy a refrigerator costs RM2 300 in 5 months. Calculate the amount of money she need to save each month. A) RM360. B) RM420. C) RM460. D) RM480. Show Answer Correct Answer: C) RM460. 9. It is known as the ability of a company to obtain the greatest profit and performance in its operations. A) Value added. B) Profit maximization. C) Basic financial objective. D) Monetary Politics. Show Answer Correct Answer: B) Profit maximization. 10. A project's profitability index is calculated as: A) Present value of cash inflows divided by initial investment. B) Future value of cash flows minus initial investment. C) Total cash flows divided by project life. D) Annual profit divided by initial investment. Show Answer Correct Answer: A) Present value of cash inflows divided by initial investment. 11. Are the following statements true or false? True False 1. Maximising market share is an example of a financial objective. 2. Shareholder wealth maximisation is the primary financial objective for a company listed on a stock exchange. 3. Financial objectives should be quantitative so that their achievement can be measured. A) True, False, True. B) True, True, True. C) True, False, False. D) False, True, True. Show Answer Correct Answer: D) False, True, True. 12. If the Demand for money increases, what will happen to the Interest Rate? A) Decrease. B) Increase. C) No Change. D) None of the above. Show Answer Correct Answer: B) Increase. 13. Jeremiah wants to save for a $ 750.00 stereo over 6 months, what will he need to save each month to make his goal? A) $ 125.00. B) $ 105.00. C) $ 120.00. D) $ 130.00. Show Answer Correct Answer: A) $ 125.00. 14. Financial leverage is intended to A) Increase return on capital employed. B) Increase net equity returns. C) Decrease volatility in return. D) Increase return on capital employed and net equity. Show Answer Correct Answer: D) Increase return on capital employed and net equity. 15. There are checks in the checkbook, so there must be money in the checking account A) Fact. B) Fiction. C) All the above. D) None of the above. Show Answer Correct Answer: B) Fiction. 16. A government follows an expansionary monetary policy.How would this typically affect businesses? A) Higher demand from customers, lower interest rates on loans and increased availability of credit. B) A contraction in demand from customers, higher interest rates and less available credit. C) Lower taxes, higher demand from customers but less government subsidies/available contracts. D) Lower interest rates, lower exchange rates and higher tax rates. Show Answer Correct Answer: A) Higher demand from customers, lower interest rates on loans and increased availability of credit. 17. How is financial viability of an organization typically assessed? A) Employee satisfaction. B) Customer feedback. C) Financial Statements. D) Market Share. Show Answer Correct Answer: C) Financial Statements. 18. Govt. cheque remains valid for- A) 2 months. B) 3 months. C) 4 months. D) 6 months. Show Answer Correct Answer: B) 3 months. 19. Nancy made 600 widgets in 8 hours, what is her production rate? A) 60. B) 80. C) 75. D) 70. Show Answer Correct Answer: C) 75. 20. Which of the following is NOT considered a core financial decision-making area? A) Investment decisions. B) Financing decisions. C) Dividend decisions. D) Marketing decisions. Show Answer Correct Answer: D) Marketing decisions. 21. Freely floating exchange rates perform which of the following functions? A) They tend to correct a lack of equilibrium between imports and exports. B) They make imports cheaper and exports more expensive. C) They impose constraints on the domestic economy. D) They eliminate the need to hedge against fluctuations in foreign exchange rates. Show Answer Correct Answer: A) They tend to correct a lack of equilibrium between imports and exports. 22. You have had a credit card that you always pay off for 10 years A) Improve your credit score. B) Hurt your credit score. C) All the above. D) None of the above. Show Answer Correct Answer: A) Improve your credit score. 23. What is return on investment (ROI)? A) ROI is calculated as (Total Investment / Net Profit) x 100. B) ROI is the total revenue generated from an investment. C) ROI measures the time taken to recover an investment. D) ROI is calculated as (Net Profit / Cost of Investment) x 100. Show Answer Correct Answer: D) ROI is calculated as (Net Profit / Cost of Investment) x 100. 24. From investment, profit will be earned that eventually will lead to business growth. A) Money Has Time Value. B) Risk Return Trade Off. C) Cash Flows Are Source Of Values. D) Market Prices Reflect Information. Show Answer Correct Answer: C) Cash Flows Are Source Of Values. 25. Which is a low-risk investment? A) Stocks. B) Savings account. C) Cryptocurrency. D) Startups. Show Answer Correct Answer: B) Savings account. ← 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