This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 9 Financial Management – Quiz 4 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 9 Financial Management Quiz 4 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The primary purpose of fuel hedging for an airline is to: A) Speculate on rising fuel prices for profit. B) Increase the airline's total available cash flow. C) Stabilize and control future fuel costs to reduce earnings volatility. D) Reduce the overall quantity of fuel consumed. Show Answer Correct Answer: C) Stabilize and control future fuel costs to reduce earnings volatility. 2. Accounts Payable A) Debit. B) Credit. C) All the above. D) None of the above. Show Answer Correct Answer: B) Credit. 3. What will happen to your credit rating if you don't pay your loan? A) Poor. B) Good. C) Outstanding. D) Needs improvement. Show Answer Correct Answer: A) Poor. 4. E-filers are issued a Personal Identification Number or ..... allows the taxpayer to "sign" the return electronically. A) 1040EZ. B) PIN. C) D-400. D) None of the above. Show Answer Correct Answer: B) PIN. 5. A ..... is a set of documents that outline the essential financial facts about the new venture. A) Financial forecast. B) Budget. C) Income statement. D) Financial plan. Show Answer Correct Answer: D) Financial plan. 6. Individuals or companies that make a profit investing in startup companies A) Entrepreneurs. B) Venture Capitalist. C) Bill Gates. D) Silent Partner. Show Answer Correct Answer: B) Venture Capitalist. 7. Earnings to sales, assets, or equity A) Profitability Ratios. B) Market Ratios. C) Corporate Taxes. D) Ordinary Corporate Income. Show Answer Correct Answer: A) Profitability Ratios. 8. What can consistent and substantial distributions signal to the market? A) Lack of cash flow. B) Financial instability. C) Financial health. D) High debt ratio. Show Answer Correct Answer: C) Financial health. 9. Which of the following is/are feature of corporate governance? A) Non-universality. B) Accountability. C) Ambiguity. D) None of the above. Show Answer Correct Answer: B) Accountability. 10. Inverter model formula D stands for A) Dividend per share. B) Direct-dividend. C) Direct earnings. D) None of above. Show Answer Correct Answer: A) Dividend per share. 11. Which of the following is used as Working Capital? A) Stock. B) Factory. C) Furniture. D) Machinery. Show Answer Correct Answer: A) Stock. 12. What are Fixed Expenses? A) Unexpected costs. B) Costs that do not change from month to month (e.g., rent, car payments). C) Costs that vary from month to month. D) One-time costs. Show Answer Correct Answer: B) Costs that do not change from month to month (e.g., rent, car payments). 13. Cost of Capital refers to ..... A) Flotation Cost. B) Dividend. C) Required rate of return. D) None of the above. Show Answer Correct Answer: C) Required rate of return. 14. Logan plans to buy a motorcycle with a 6% annual interest rate. Which of the following should he consider most to ensure effective financial management? A) The colour of the car. B) The car's brand. C) The car's fuel efficiency. D) The duration of the loan. Show Answer Correct Answer: D) The duration of the loan. 15. If you earns RM3, 000 per month and want to allocate 40% for essential expenses, how much will you spend on those expenses? A) RM1, 000. B) RM1, 500. C) RM2, 000. D) RM1, 200. Show Answer Correct Answer: D) RM1, 200. 16. Encik Lim's income and expenses:Salary:RM3750Comission:RM1000Housing loan:RM1100Utilities:RM300Groceries:RM900Mr Lim kept 10% of the total income and a sum of RM200 for the emergency fund. Calculate the surplus of income of Mr Lim. A) RM1200. B) RM1350. C) RM1400. D) RM1775. Show Answer Correct Answer: D) RM1775. 17. A company selling a bond is ..... money. A) Borrowing. B) Lending. C) Taking. D) Reinvesting. Show Answer Correct Answer: A) Borrowing. 18. Most unsafe mode by which firms perform worldwide business is A) Licencing. B) Franchising. C) International trade. D) Establishment of new subsidiaries. Show Answer Correct Answer: D) Establishment of new subsidiaries. 19. Which of the following is the correct order of financial management process?I) Carrying out financial planII) Setting goalsIII) Reviewing and revising the progressIV) Evaluating financial statusV) Creating financial plan A) II, IV, V, I, III. B) II, V, IV, III, I. C) IV, I, II, V, III. D) IV, II, V, I, III. Show Answer Correct Answer: A) II, IV, V, I, III. 20. Taxpayers may prepare and file their tax returns electronically from all of the following except A) Home. B) Post-office. C) Authorized e-file provider. D) None of the above. Show Answer Correct Answer: B) Post-office. 21. IF THE SALES ARE RS 50, 00, 000 AND VARIABLE COSTS ARE 30, 00, 000 A) CONTRIBUTION RS 80, 00, 000. B) CONTRIBUTION RS 150, 00, 000. C) CONTRIBUTION RS 15, 00, 000. D) NONE OF THE ABOVE. Show Answer Correct Answer: D) NONE OF THE ABOVE. 22. Cash dividends payments A) Operating Activities. B) Financing Activities. C) Investing Activities. D) None of the above. Show Answer Correct Answer: A) Operating Activities. 23. Basic objective of Financial Management is A) Maximisation of profits. B) Allocate resources. C) Ensuring financial discipline in the organisation. D) None of the above. Show Answer Correct Answer: A) Maximisation of profits. 24. Debt Ratio can be computed by dividing the? A) Total Liabilities/Total Shareholder's Equity. B) Total Liabilities/Total Assets. C) Total Liabilities/Average Total Assets. D) Total Assets/Total Liabilities. Show Answer Correct Answer: B) Total Liabilities/Total Assets. 25. In the present days, corporation finance is also referred to as business finance and financial management A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. ← 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 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 10Class 12 Business Studies Chapter 9 Financial Management Quiz 11 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books