This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 9 Financial Management – Quiz 45 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 9 Financial Management Quiz 45 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Expense A) Tax. B) Cost. C) Highly expensive. D) Something you use or buy. Show Answer Correct Answer: D) Something you use or buy. 2. Which of the following functions of the financial system channelizes the savings from the savers to the producers in the economy? A) Financial Intermediation function. B) Liquidity function. C) Payment function. D) Risk function. Show Answer Correct Answer: A) Financial Intermediation function. 3. Financial analysis and reporting: A) Provides insights into a company's financial health, performance, and profitability. B) Helps investors make informed investment decisions. C) Both of the above. D) Neither of the above. Show Answer Correct Answer: C) Both of the above. 4. Liquidity decision often relates to ..... A) Current liabilities and non-current assets. B) Current assets and non-current liabilities. C) Non-current assets and non-current liabilities. D) Current assets and current liabilities. Show Answer Correct Answer: D) Current assets and current liabilities. 5. Which statement best captures the scope of international finance as described, focusing on cross-border activities and decision drivers? A) It measures cultural adoption of global products and festivals. B) It focuses only on international marketing strategies and branding. C) It examines cross-border transactions and exchange-rate influenced decisions. D) It studies domestic budgeting techniques within single-country firms. Show Answer Correct Answer: C) It examines cross-border transactions and exchange-rate influenced decisions. 6. The agency problem is a driving force behind the growing importance attached to sound corporate governance. In this context, who are the agents? A) Shareholders. B) Managers. C) Auditors. D) None of the above. Show Answer Correct Answer: C) Auditors. 7. What does the Debt-to-Income Ratio measure? A) Monthly debt payments in relation to their monthly income. B) The total amount of debt. C) The interest rate on loans. D) The total income. Show Answer Correct Answer: A) Monthly debt payments in relation to their monthly income. 8. Which type of account typically offers the highest interest rates? A) Checking account. B) Savings account. C) Certificate of Deposit (CD). D) Money market account. Show Answer Correct Answer: C) Certificate of Deposit (CD). 9. The strategic role of financial management is to: A) Provide financial resources to implement strategic plan. B) Provide guidelines to implement the strategic plan. C) Outline the financial plans of the business. D) Provide a system of recording financial statements. Show Answer Correct Answer: A) Provide financial resources to implement strategic plan. 10. Greater exposure bigger the A) Spot rate. B) Risk. C) Forward rate. D) Investment. Show Answer Correct Answer: B) Risk. 11. The principle of risk and return suggests that there is no relationship between the amount of risk you take and the potential return you can earn A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 12. Which one is a Tendering Method? A) OTM. B) RFQ. C) LTM. D) Above All. Show Answer Correct Answer: D) Above All. 13. Which of the following statement on vertical analysis is false?a. For the Statement of Financial Position the divisor is Total Liabilitiesb. For the Statement of Comprehensive Income the divisor is Net Sales(Revenue)c. For the Cash Flow Statement the divisor is the total cash inflows A) A. B) B. C) C. D) A and b. Show Answer Correct Answer: A) A. 14. Deciding how to spend your money before you actually spend it. A) Account. B) Balance. C) Budget. D) Cash. Show Answer Correct Answer: C) Budget. 15. Which of the following measures the benefit gained from an IS investment? A) Budgeting. B) Return on Investment (ROI). C) Cost-Benefit Analysis. D) Risk Assessment. Show Answer Correct Answer: B) Return on Investment (ROI). 16. Sara earns $ 10.00 an hour. She worked 40 hours this pay period. Her gross pay was? A) $ 300 after taxes and deductions. B) $ 400.00. C) $ 275.00 after standard deductions. D) None of the above. Show Answer Correct Answer: B) $ 400.00. 17. ..... is the first step in strategy Formulation A) Environmental analysis. B) Organisational vision. C) Organisational Mission. D) Corporate analysis. Show Answer Correct Answer: C) Organisational Mission. 18. Which is not in assets A) Money. B) Printer. C) Note payable. D) Note receivable. Show Answer Correct Answer: C) Note payable. 19. Limitations on the use of financial statement includes the following except: A) Dependence on historical costs. B) Inflationary effects. C) Based on specific time period. D) None of the above. Show Answer Correct Answer: D) None of the above. 20. What method of managing exchange rates allows a currency to fluctuate but only within a relatively narrow range around a target rate? A) Managed peg. B) Crawling peg. C) Fluctuating peg. D) Floating peg. Show Answer Correct Answer: B) Crawling peg. 21. Which of the following is the correct example of asset and liability? A) Asset:Loan Liability:Credit card debts. B) Asset:Tax Liability:Real estate. C) Asset:Unit trust Liability:Instalment balance. D) Asset:Saving Liability:Property. Show Answer Correct Answer: C) Asset:Unit trust Liability:Instalment balance. 22. High operating leverage indicates a company has A) High fixed cost. B) Low variable cost. C) Both a and b. D) None of the above. Show Answer Correct Answer: C) Both a and b. 23. The time lag between placing an order and actual receipt of materials is known as A) Lag time. B) Lead time. C) Order placement time. D) Material receipt time. Show Answer Correct Answer: B) Lead time. 24. A firm's investment decision is also called the: A) Financing decision. B) Capital budgeting decision. C) Liquidity decision. D) None of these options. Show Answer Correct Answer: B) Capital budgeting decision. 25. Fixed capital is less required in which concern? A) Service provider. B) Manufacturer. C) Capital intensive. D) None of these. Show Answer Correct Answer: A) Service provider. ← 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