This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 9 Financial Management – Quiz 48 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 9 Financial Management Quiz 48 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Inventory Management is part of A) Capital Structure Decisions. B) Capital Budgeting Decisions. C) Dividend Decisions. D) Working Capital Management Decisions. Show Answer Correct Answer: D) Working Capital Management Decisions. 2. Financial management aims at A) Ensuring availability of enough funds. B) Reducing the cost of funds procured. C) Effective deployment of funds. D) All of the above. Show Answer Correct Answer: D) All of the above. 3. A company receives a perpetuity of $ 20, 000 per annum in arrears, and pays 30% corporation tax 12 months after the end of the year to which the cash flows relate.At a cost of capital of 10%, what is the after-tax present value of the perpetuity? A) $ 140, 000. B) $ 145, 454. C) $ 144, 000. D) $ 127, 274. Show Answer Correct Answer: B) $ 145, 454. 4. A firm's financing costs include A) Depreciation expense. B) Interest expense. C) Costs of goods sold. D) Both A and B. Show Answer Correct Answer: B) Interest expense. 5. Describe the components of a financial statement. A) Revenue statement, equity sheet, cash flow statement, statement of changes in liabilities. B) Profit statement, liability sheet, cash flow statement, statement of changes in equity. C) Income statement, balance sheet, cash flow statement, statement of changes in equity. D) Expense statement, asset sheet, cash flow statement, statement of changes in equity. Show Answer Correct Answer: C) Income statement, balance sheet, cash flow statement, statement of changes in equity. 6. All of the decisions and activities of an individual or family regarding their money, including spending, saving, budgeting, etc. A) Personal Finance. B) Consumer. C) Loan. D) Credit. Show Answer Correct Answer: A) Personal Finance. 7. What is the significance of agency theory in finance? A) Manages investment portfolios. B) Predicts stock prices. C) Analyzes market trends. D) Explains relationships between principals and agents. Show Answer Correct Answer: D) Explains relationships between principals and agents. 8. Retirement of entity-issued bonds A) Operating Activities. B) Financing Activities. C) Investing Activities. D) None of the above. Show Answer Correct Answer: B) Financing Activities. 9. What is an emergency fund? A) Money saved for entertainment purposes. B) Money set aside for unexpected expenses. C) A type of investment account. D) Extra money for vacations. Show Answer Correct Answer: B) Money set aside for unexpected expenses. 10. The importance of 'Trading on Equity' lies in the fact that if the company is earning more profit, it can make use of borrowed capital and preference share capital and by doing so it can increase the income of ..... A) Preference Shareholders. B) Lenders. C) Equity Shareholders. D) Government. Show Answer Correct Answer: C) Equity Shareholders. 11. Which of the following techniques uses discounted cash flow? A) Payback period. B) NPV. C) ARR. D) Accounting profit. Show Answer Correct Answer: B) NPV. 12. Raju's family wants ₹ 30, 00, 000 in 5 years at 10% annual return. The required monthly SIP is closest to: A) ₹ 18400. B) ₹ 28400. C) ₹ 48400. D) ₹ 38400. Show Answer Correct Answer: D) ₹ 38400. 13. Which technique in financial management enable us to take procurement/sourcing decisions? A) Capital Structure. B) Working Capital Management. C) Ratio Analysis. D) Capital Budgeting. Show Answer Correct Answer: A) Capital Structure. 14. Marketing manager A) Internal User. B) External User. C) All the above. D) None of the above. Show Answer Correct Answer: A) Internal User. 15. Financial management is only important for businesses, not individuals A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 16. Financial Ratios are ..... measure. A) Absolute. B) Relative. C) All the above. D) None of the above. Show Answer Correct Answer: B) Relative. 17. Which method is commonly used for evaluating capital projects? A) Internal Rate of Return (IRR). B) Payback Period. C) Net Present Value (NPV). D) Return on Investment (ROI). Show Answer Correct Answer: C) Net Present Value (NPV). 18. A trend is then determined by comparing percentage relationships. Base on the trends, interpretation, conclusions, and implications are drawn. A) TRUE. B) FALSE. C) All the above. D) None of the above. Show Answer Correct Answer: A) TRUE. 19. What is included in financial management according to the traditional approach? A) Arranging finance. B) Using finance effectively. C) Both (a) and (b). D) None of these. Show Answer Correct Answer: A) Arranging finance. 20. Name the financial decision which relates to disposal of profits. A) Investment decision. B) Financing decision. C) Dividend decision. D) Capital budgeting decision. Show Answer Correct Answer: C) Dividend decision. 21. A belief of idea that you consider important or valuable A) Goal. B) Objective. C) Value. D) Need. Show Answer Correct Answer: C) Value. 22. Financial managers use net present value (NPV) to evaluate long-term investment proposals. A) True. B) False. C) Only for short-term investments. D) Only in specific sectors. Show Answer Correct Answer: A) True. 23. Which of the following best illustrates financial management? A) Hiring workers. B) Buying raw materials. C) Planning funds, raising finance, and controlling usage. D) Advertising products. Show Answer Correct Answer: C) Planning funds, raising finance, and controlling usage. 24. The highest policy making body in a corporation. A) Shareholders. B) Board of Directors. C) Chief Executive Officer. D) President. Show Answer Correct Answer: B) Board of Directors. 25. Financing decisions involve A) Fixed assets decisions. B) Capital Budgeting decisions. C) Shareholders fund decisions. D) Debt Equity decisions. Show Answer Correct Answer: D) Debt Equity decisions. ← 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