This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 9 Financial Management – Quiz 53 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 9 Financial Management Quiz 53 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following is a liability? A) Unit trust. B) Bank loan. C) Investment. D) Fixed deposit. Show Answer Correct Answer: B) Bank loan. 2. Purchasing insurance is a type of: A) Gambling. B) Speculation. C) Risk management. D) Expense. Show Answer Correct Answer: C) Risk management. 3. Record keeping of financial transactions is part of A) Investment decisions. B) Routine finance functions. C) Dividend decisions. D) Strategic planning. Show Answer Correct Answer: B) Routine finance functions. 4. Which of the following is a type of corporate planning? A) Personal planning. B) Market planning. C) Operational planning. D) Financial planning. Show Answer Correct Answer: C) Operational planning. 5. The cost of raising finance is A) Promotion cost. B) Venture cost. C) Sinking cost. D) Floatation cost. Show Answer Correct Answer: D) Floatation cost. 6. If operating leverage is 4, this means that- A) 4% change in sales will cause 1% change in EBIT. B) 1% change in sales will cause 4% change in EBIT. C) 1% change in sales will cause 4% change in EPS. D) 4% change in sales will cause 1% change in EPS. Show Answer Correct Answer: B) 1% change in sales will cause 4% change in EBIT. 7. Which item represents an Aeronautical Revenue source for a typical airport? A) Long-term car parking revenue. B) Hotel and land development lease revenue. C) Landing and parking fees for commercial aircraft. D) Advertising revenue from in-terminal displays. Show Answer Correct Answer: C) Landing and parking fees for commercial aircraft. 8. A floating exchange rate A) Determined by the national governments involved. B) Is determined by the actions of central banks. C) Is allowed to vary according to market forces. D) Remains extremely stable over long periods of time. Show Answer Correct Answer: C) Is allowed to vary according to market forces. 9. ..... is concerned with maximisation of a firm's stock price A) Shareholder wealth maximisation. B) Profit maximisation. C) Stakeholder welfare maximisation. D) EPS maximisation. Show Answer Correct Answer: A) Shareholder wealth maximisation. 10. Ensuring that the fund to be invested will create value to a business or an individual in the form of profit. A) Finance. B) Evaluating Investments. C) Financial Management. D) Financial Institution. Show Answer Correct Answer: B) Evaluating Investments. 11. A debt evidenced by a "note, " which specifies the principal amount, interest rate, and date of repayment A) Loan. B) Debt. C) Credit Card. D) Credit. Show Answer Correct Answer: A) Loan. 12. A financial statement that shows the "projected costs" for things such as:Equipment & Supplies, Furniture & Fixtures, Remodeling, and Salaries/Legal Fees is called a: A) Balance Sheet. B) Income Statement. C) Startup Cost Statement. D) Payroll Sheet. Show Answer Correct Answer: C) Startup Cost Statement. 13. ..... is used to estimate future free cash flows. A) Mission statement. B) Projected financial statement. C) Vision. D) Objectives. Show Answer Correct Answer: B) Projected financial statement. 14. This pertains to the overall debt status of the company. It measures the degree of how the firm is financed A) DEBT-UTILIZATION OR LEVERAGE. B) ASSET UTILIZATION OR ACTIVITY. C) All the above. D) None of the above. Show Answer Correct Answer: A) DEBT-UTILIZATION OR LEVERAGE. 15. The expansion of CAPM is ..... A) Capital amount pricing model. B) Capital asset printing model. C) Capital asset pricing model. D) Capital amount printing model. Show Answer Correct Answer: C) Capital asset pricing model. 16. What is a potential consequence of poor financial management for a business? A) Increased profitability. B) Enhanced market reputation. C) Insufficient cash flow. D) Higher employee morale. Show Answer Correct Answer: C) Insufficient cash flow. 17. Which of the following is not an objective of financial management? A) Maximization of wealth of shareholders. B) Maximization of profits. C) Mobilization of funds at an acceptable cost. D) Ensuring discipline in the organization. Show Answer Correct Answer: D) Ensuring discipline in the organization. 18. "Discount pricing" means the discount price is ..... than the original price? A) Higher. B) Lower. C) The Same. D) None of these. Show Answer Correct Answer: B) Lower. 19. ASSETS = LIABILITIES + OWNER'S EQUITY is known as the, ..... A) Accounts payable. B) Accounting equation. C) Financial statements. D) Income statement. Show Answer Correct Answer: B) Accounting equation. 20. A company's internal source of equity capital can be generated from retained earnings.What does a retained earning mean? A) It's a sum of money paid regularly by a company to its shareholders out of its profits. B) It's an asset account on the balance sheet that represents money due to a company in the short-term. C) It's the amount of net income left over for the business after it has paid out dividends to its shareholders. D) None of the above. Show Answer Correct Answer: C) It's the amount of net income left over for the business after it has paid out dividends to its shareholders. 21. What is included in financial planning? A) Determining financial objectives. B) Determining financial policies. C) Determining financial procedures. D) All of these. Show Answer Correct Answer: D) All of these. 22. Which of the following can lead to increased expected cash flow over time to the firm? A) Open and collaborative relations with the community. B) Qualified and motivated employees. C) Greater customer satisfaction. D) All of the above. Show Answer Correct Answer: D) All of the above. 23. Assume a profitable firm has neither issued nor repurchased any shares of its common stock, nor has it ever paid dividends. If the book value of the firm's stockholders' equity has increased, it follows that the: A) Firm's earnings per share has increased. B) Market value of the firm's buildings has increased. C) Market value of the firm's long-term debt has decreased. D) None of the above. Show Answer Correct Answer: A) Firm's earnings per share has increased. 24. What is the average CAGR (compounded annual growth rate) of Vinamilk's profit after tax from 2012 to 2021? A) 2.15%. B) 7.47%. C) 9.79%. D) None of the above. Show Answer Correct Answer: B) 7.47%. 25. What is a common focus of financial management training? A) Marketing and sales. B) Money management and budgeting. C) Customer service and relationship building. D) Risk management and financial analysis. Show Answer Correct Answer: B) Money management and budgeting. ← 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