This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 9 Financial Management – Quiz 55 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 9 Financial Management Quiz 55 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following helps prevent overspending on IS projects? A) Budgeting. B) Return on Investment (ROI). C) Cost-Benefit Analysis. D) Risk Assessment. Show Answer Correct Answer: A) Budgeting. 2. CAPITAL STRUCTURE DENOTES THE COMPOSITION OF A) SHARE CAPITAL. B) LONG TERM AND SHORT TERM DEBTS. C) DEBT AND EQUITY. D) RESERVES AND SURPLUS. Show Answer Correct Answer: B) LONG TERM AND SHORT TERM DEBTS. 3. According to MM approach the total value of the firm is A) Static. B) Increase with increase in WACC. C) Increase with decrease in W ACC. D) Variable. Show Answer Correct Answer: A) Static. 4. Also known as dynamic measure or trend ratios. This involves the comparison and measurement of financial statements of two or more periods. A) HORIZONTAL ANALYSIS. B) VERTICAL ANALYSIS. C) All the above. D) None of the above. Show Answer Correct Answer: A) HORIZONTAL ANALYSIS. 5. WHICH OF THE FOLLOWING IS NOT A COMPONENT OF OWNERS' FUNDS? A) RESERVE AND SURPLUS. B) EQUITY SHARE CAPITAL. C) DEBENTURES. D) PREFERENCE SHARE CAPITAL. Show Answer Correct Answer: C) DEBENTURES. 6. What is the compound value of Rs. 10, 000 at the end of 3rd year at 12% interest when interest is calculated on quarterly basis? A) 14050. B) 13500. C) 14260. D) 15430. Show Answer Correct Answer: C) 14260. 7. With credit terms of 3/8, n/30, the customer's payment decision date is three days after the invoice received. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 8. Financial management and financial planning are synonyms of each other. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 9. Tammy has a basic account that allows her to deposit and withdraw money, write checks, and receive a monthly statement with no service charge if she manintains a minimum balance of $ 25.00. This type of account is called ..... A) Savings account. B) IRA. C) Retirement Account. D) Checking Account. Show Answer Correct Answer: D) Checking Account. 10. ..... is also referred to as working capital position or short-term financial position. A) LIQUIDITY. B) PROFITABILITY. C) All the above. D) None of the above. Show Answer Correct Answer: A) LIQUIDITY. 11. Explain the importance of financial analysis in decision-making. A) Financial analysis is only relevant for large corporations. B) Financial analysis has no impact on decision-making. C) Financial analysis is crucial in decision-making as it provides valuable insights into the financial performance and position of a business, enabling stakeholders to make informed and strategic choices. D) Financial analysis is only useful for historical purposes. Show Answer Correct Answer: C) Financial analysis is crucial in decision-making as it provides valuable insights into the financial performance and position of a business, enabling stakeholders to make informed and strategic choices. 12. Financial management involves making smart choices about spending, saving, and investing A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 13. Only revenue nature cash flow is shown in cash budget A) A. True. B) B. False. C) C. Other. D) None of the above. Show Answer Correct Answer: B) B. False. 14. Capital allocation is an important role of A) CEO. B) CFO. C) Marketing manager. D) HR manager. Show Answer Correct Answer: B) CFO. 15. This considered as the oldest, most common, and simplest form of business organization. A) Sole Ownership. B) Partnership. C) Sole Proprietorship. D) Corporation. Show Answer Correct Answer: C) Sole Proprietorship. 16. Vice president of finance A) Internal User. B) External User. C) All the above. D) None of the above. Show Answer Correct Answer: A) Internal User. 17. I am walking 3 hours today to raise money for Juvenile Diabetes. How much can you pledge? A) Spending. B) Saving. C) Investing. D) Donating. Show Answer Correct Answer: D) Donating. 18. What role does diversification play in risk management? A) Diversification increases risk by concentrating investments in a single asset. B) Diversification has no impact on risk management strategies. C) Diversification only benefits high-risk investments. D) Diversification minimizes risk by spreading investments across different assets. Show Answer Correct Answer: D) Diversification minimizes risk by spreading investments across different assets. 19. A firm has common stock with a market price of $ 25 per share and an expected dividend of $ 2 per share at the end of the coming year. The growth rate in dividends has been 5%. The cost of the firm's commonstock equity is A) 5%. B) 8%. C) 10%. D) 13%. Show Answer Correct Answer: D) 13%. 20. Which is not a part of investment decision?a. Working capital managementb. Cash managementc. Credit managementd. Capital budgeting A) C. B) D. C) A & b. D) B & c. Show Answer Correct Answer: D) B & c. 21. The Marketing Mix can also be called ..... A) 4 P's. B) 4 C's. C) 2 M's. D) None of the above. Show Answer Correct Answer: A) 4 P's. 22. Which of the following is not a key aspect of financial management? A) Financial planning and budgeting. B) Capital budgeting. C) Risk management. D) Financial analysis and reporting. E) Marketing. Show Answer Correct Answer: E) Marketing. 23. Which of the following mechanisms would be most likely to help motivate managers to act in the best interest of shareholders? A) Decrease the use of restrictive covenants in bond agreements. B) Take actions that reduce the possibility of a hostile takeover. C) Have the board of directors allow managers greater freedom of action. D) Increase the compensation to stock options and reduce the proportion paid as cash salaries. Show Answer Correct Answer: D) Increase the compensation to stock options and reduce the proportion paid as cash salaries. 24. Of the following, which is NOT an example of a financial intermediary? A) Commercial bank. B) Insurance company. C) Investment bank. D) All of the above are financial intermediaries. Show Answer Correct Answer: D) All of the above are financial intermediaries. 25. Which is not the current assets? A) Stock. B) Goodwill. C) Debtors. D) Bills receivable. Show Answer Correct Answer: B) Goodwill. ← 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