This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 9 Financial Management – Quiz 46 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 9 Financial Management Quiz 46 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is financial forecasting based on? A) Random guesses. B) Historical data. C) Market trends. D) Competitor analysis. Show Answer Correct Answer: B) Historical data. 2. ..... are intermediaries that channel the saving of individuals, businesses, and governments into loans or investments. A) Financial institutions. B) Kuala Lumpur Stock Exchange. C) Money markets. D) Financial markets. Show Answer Correct Answer: A) Financial institutions. 3. Mr. Wong earned RM3000 as a graphic designer in a company. He also works as a feelancer in his free time and earned an extra income of RM300 for the last month. In the same month, Mr. Wong's total expenses was RM 1400. Calculate Mr. Wong's cash flow and status of his cash flow A) RM 1900, Positive Cash Flow. B) RM 1600, Positive Cash Flow. C) RM 1900, Negative Cash Flow. D) RM 1600, Negative Cash Flow. Show Answer Correct Answer: A) RM 1900, Positive Cash Flow. 4. If the current assets of a firm is Rs 120000, long term debt-Rs 80000, current liability Rs 40000 then Net working capital is- A) 120000. B) 80000. C) 40000. D) Zero. Show Answer Correct Answer: B) 80000. 5. Which feature best characterizes the classical Gold Standard adopted by major economies by the late 19th century? A) Exchange rates pegged to silver units. B) Rates managed by central bank targets. C) Currencies fixed to a gold quantity. D) Currencies freely floating by demand. Show Answer Correct Answer: C) Currencies fixed to a gold quantity. 6. Which of the following is not true for mm model A) Share price goes up if dividend is paid. B) Share price goes down if dividend is not paid. C) Market value is unaffected by dividend policy. D) All of the above. Show Answer Correct Answer: C) Market value is unaffected by dividend policy. 7. Your university is running a special offer on tuition. This year's tuition cost is $ 18, 000. Next year's tuition cost is scheduled to be $ 19, 080. The university offers to discount next year's tuition at a rate of 6% if you agree to pay both years' tuition in full today. How much is the total tuition bill today if you take the offer? A) $ 36, 000. B) $ 36, 981. C) $ 36, 080. D) $ 28, 000. Show Answer Correct Answer: A) $ 36, 000. 8. What is ignored in Principle of Profit Maximization? A) Time Value of Money. B) Risk. C) Wealth Creation. D) All of the above. Show Answer Correct Answer: D) All of the above. 9. What is an Interest Rate? A) The percentage charged on a loan or earned on an investment. B) The total amount of a loan. C) The term of a loan. D) The monthly payment on a loan. Show Answer Correct Answer: A) The percentage charged on a loan or earned on an investment. 10. There is no operating leverage if there is no ..... A) Profit. B) Sales. C) Fixed Cost. D) Variable Cost. Show Answer Correct Answer: C) Fixed Cost. 11. If ICR is high, firm prefers A) (a) Debt. B) (b) Equity. C) C) Both (a) and (b). D) (d) None of the above. Show Answer Correct Answer: A) (a) Debt. 12. What is the role of a financial manager? A) To manage human resources and employee relations. B) To handle customer service and support operations. C) To oversee marketing strategies and brand development. D) The role of a financial manager is to oversee financial planning, manage investment activities, and ensure the organization's financial health. Show Answer Correct Answer: D) The role of a financial manager is to oversee financial planning, manage investment activities, and ensure the organization's financial health. 13. EBIT adalah ukuran yang penting suatu perusahaan, karena ..... A) Menunjukkan free cash. B) Karena menunjukan keuntungan akhir suatu perusahaan. C) Menunjukkan profitability suatu perusahaan dari segi Operasi. D) Mengukur 'earning' sebelum dikurangi indirect cost dan transfer. Show Answer Correct Answer: B) Karena menunjukan keuntungan akhir suatu perusahaan. 14. The relative proportion of debt, equity, and other securities that a firm has outstanding constitute its ..... A) Asset ratio. B) Current ratio. C) Capital structure. D) Retained earnings. Show Answer Correct Answer: C) Capital structure. 15. Which of the below is NOT a major component of interest rates? A) Real rate. B) Inflation premium. C) Historical interest rates. D) Default premium. Show Answer Correct Answer: C) Historical interest rates. 16. The existing 1, 000 shares of Rs 100 each altered to 10, 000 shares of Rs 10 each is ..... A) Consolidation. B) Sub division. C) Conversion. D) Surrender. Show Answer Correct Answer: B) Sub division. 17. What does an increase in the current ratio indicate about a company's short-term financial position? A) Improved liquidity. B) Higher profitability. C) Increased leverage. D) Declining solvency. Show Answer Correct Answer: A) Improved liquidity. 18. Which of the following is considered a fixed expense? A) Rent. B) Groceries. C) Entertainment. D) Clothing. Show Answer Correct Answer: A) Rent. 19. Which of the following is the correct statement of the conclusion of Modigliani and Miller on the relevance of dividend policy? A) Increase in retentions result in a higher growth rate. B) All shareholders are indifferent between receiving dividend income and capital gains. C) The value of the shareholders' equity is determined solely by the firm's investment selection criteria. D) Discounting the dividends is not an appropriate way to value the firm's equity. Show Answer Correct Answer: C) The value of the shareholders' equity is determined solely by the firm's investment selection criteria. 20. What is a dividend? A) Tax. B) Share of profit. C) Loan. D) Investment. Show Answer Correct Answer: B) Share of profit. 21. What is included in financial management according to the traditional A) Arranging finance. B) Using finance effectively. C) Both (a) and (b). D) None of these. Show Answer Correct Answer: C) Both (a) and (b). 22. The "Rule of 72" is used to estimate: A) Taxable income. B) Life insurance coverage. C) Loan repayment duration. D) Time to double an investment. Show Answer Correct Answer: D) Time to double an investment. 23. Reserve Margin Working Capital used for A) Handling business contingencies like strikes and depressions. B) Expanding product lines. C) Investing in the stock market. D) Repaying long-term debts. Show Answer Correct Answer: A) Handling business contingencies like strikes and depressions. 24. Future value interest factor takes A) Compounding. B) Inflation. C) Discounting. D) Deflation. Show Answer Correct Answer: A) Compounding. 25. What is the main goal of financial management in a business? A) Maximizing employee benefits. B) Maximizing the value of the firm for its shareholders. C) Minimizing the number of transactions. D) Avoiding competition. Show Answer Correct Answer: B) Maximizing the value of the firm for its shareholders. ← 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