This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 9 Financial Management – Quiz 57 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 9 Financial Management Quiz 57 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Net working capital refers to excess of current liabilities over current assets. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 2. All financial decisions are taken considering A) Positive cashflows. B) Current year's profit. C) NPV. D) Current year's revenue. Show Answer Correct Answer: C) NPV. 3. The social cost benefits analysis is primarily used to determine the economic benefits of the activities in forms of which of the following: A) Market prices. B) Discounted prices. C) Shadow prices. D) Augmented prices. Show Answer Correct Answer: C) Shadow prices. 4. The ..... form shows how much money you made and how much you paid in taxes from the previous year. A) D-400. B) W-2. C) W-4. D) None of the above. Show Answer Correct Answer: B) W-2. 5. Which of the following is not a type of Long term finance source. A) Equity share capital. B) Preference Share capital. C) Trade credit. D) Debentures. Show Answer Correct Answer: C) Trade credit. 6. Primary objective of financial management is A) Availability of funds. B) Effective use of funds. C) Safety of funds. D) Maximizing shareholder's wealth. Show Answer Correct Answer: D) Maximizing shareholder's wealth. 7. Which of the following is NOT a type of financial model? A) Portfolio allocation models. B) Risk analysis models. C) Trading models. D) Market research models. Show Answer Correct Answer: D) Market research models. 8. You have $ 10, 000 available credit and you have used $ 9, 000 A) Improve your credit score. B) Hurt your credit score. C) All the above. D) None of the above. Show Answer Correct Answer: B) Hurt your credit score. 9. ..... is the main deriving force of business A) Fixed capital. B) Working capital. C) Profit. D) Employees. Show Answer Correct Answer: B) Working capital. 10. Which financial statement is crucial for evaluating a company's profitability over a specific period? A) Balance Sheet. B) Income Statement. C) Cash Flow Statement. D) Statement of Retained Earnings. Show Answer Correct Answer: B) Income Statement. 11. Short-term securities are sold in the capital market. A) TRUE. B) FALSE. C) All the above. D) None of the above. Show Answer Correct Answer: B) FALSE. 12. The knowledge and skillset necessary to be an informed consumer and manage finances effectively A) Financial Literacy. B) Loan. C) Interest. D) Credit. Show Answer Correct Answer: A) Financial Literacy. 13. Deals with Opportunity Cost A) Money Has Time Value. B) Risk Return Trade Off. C) Cash Flows Are Source of Values. D) Market Prices Reflect Information. Show Answer Correct Answer: A) Money Has Time Value. 14. What will be the amount of interest for the second year as per "sum of the years' digits" (SOYD) method for interest allocation if interest for 3 years is Rs 9, 00, 000. A) 3, 00, 000. B) 3, 60, 00, 00. C) 1, 50, 000. D) 4, 50, 000. Show Answer Correct Answer: A) 3, 00, 000. 15. What is the operating cycle? A) The time taken to convert cash into goods. B) The time taken to convert cash into cash again. C) The time taken for the production process. D) The time taken to calculate profits. Show Answer Correct Answer: B) The time taken to convert cash into cash again. 16. Which type of dividend payment policy has the advantage that if the firms earnings drop dividend will still be maintained at the relatively constant level A) Constant payout ratio policy. B) Regular dividend policy. C) Low regular and extra dividend policy. D) None of above. Show Answer Correct Answer: B) Regular dividend policy. 17. Which of the following is a financial activity you are likely to do in everyday life? A) Using UPI to make payments. B) Posting on social media. C) Ordering food. D) Watching movies. Show Answer Correct Answer: A) Using UPI to make payments. 18. In international finance, what does political risk primarily refer to? A) Risk of war between trading nations. B) Risk of government actions affecting business operations. C) Risk of currency devaluation. D) Risk of trade sanctions. Show Answer Correct Answer: B) Risk of government actions affecting business operations. 19. How can a company improve its working capital position? A) Optimize inventory, speed up receivables, extend payables, reduce expenses, increase sales. B) Increase inventory levels. C) Shorten payment terms for customers. D) Cut down on marketing efforts. Show Answer Correct Answer: A) Optimize inventory, speed up receivables, extend payables, reduce expenses, increase sales. 20. What is the other name of long term decision? A) Capital Budgeting. B) Gross working capital. C) Financial management. D) Working Capital. Show Answer Correct Answer: A) Capital Budgeting. 21. . A firm will have favourable leverage if it A) Debt. B) Interest. C) Equity. D) Earnings. Show Answer Correct Answer: D) Earnings. 22. The objective of wealth maximization takes into account A) Amount of returns expected. B) Timing of anticipated returns. C) Risk associated with uncertainty of returns. D) All of the above. Show Answer Correct Answer: D) All of the above. 23. Cost of equity of a company is 20 %. Rate of floatation cost is 5 %. Rate of personal income tax is 30 %. Calculate cost of retain earning? A) 21 %. B) 26 %. C) 14.7 %. D) 13.3 %. Show Answer Correct Answer: D) 13.3 %. 24. .... is the amount paid at the time of taking delivery of goods A) Instalment. B) Principal. C) Down payment. D) Cash price. Show Answer Correct Answer: C) Down payment. 25. What does ROI stand for and why is it important? A) Return on Investment. B) Return on Income. C) Rate of Interest. D) Revenue Over Investment. Show Answer Correct Answer: A) Return on Investment. ← 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