This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 9 Financial Management – Quiz 59 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 9 Financial Management Quiz 59 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which strategy involves determining the percentage of profits to distribute to shareholders? A) Capital structure planning. B) Working capital planning. C) Dividend strategy. D) Investment planning. Show Answer Correct Answer: C) Dividend strategy. 2. Convert 7% to a decimal A) .07. B) .007. C) 7.0. D) None of the above. Show Answer Correct Answer: A) .07. 3. From the below-mentioned items which are financial assets? A) Machines. B) Bonds. C) Stocks. D) B &C. Show Answer Correct Answer: B) Bonds. 4. ..... is the time span between acquisition of goods and realisation of sale proceeds. A) Working Capital. B) Payback period. C) Operating cycle. D) Account receivable period. Show Answer Correct Answer: C) Operating cycle. 5. Favourable Financial Leverage increase the earning of equity share holders A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 6. Which one of the following best states the primary goal of financial management? A) Maximize current dividends per share. B) Maximize the current value per share. C) Increase cash flow and avoid financial distress. D) Minimize operational costs while maximizing firm efficiency. E) Maintain steady growth while increasing current profits. Show Answer Correct Answer: B) Maximize the current value per share. 7. NPV will be positive if A) Companies work hard. B) Discounted cash flows justify initial investment. C) Money is given. D) They won't be. Show Answer Correct Answer: B) Discounted cash flows justify initial investment. 8. When a private company buys a publicly traded company as a means of acquiring public status, it is classified as ..... takeover. A) Straight takeover. B) Ballout takeover. C) Reverse takeover. D) Hostile takeover. Show Answer Correct Answer: C) Reverse takeover. 9. How can financial ratios be used in financial analysis? A) Financial ratios can be used in financial analysis to evaluate a company's performance, profitability, liquidity, solvency, and efficiency. B) Financial ratios can be used in financial analysis to bake a cake. C) Financial ratios can be used in financial analysis to determine the weather forecast. D) Financial ratios can be used in financial analysis to play basketball. Show Answer Correct Answer: A) Financial ratios can be used in financial analysis to evaluate a company's performance, profitability, liquidity, solvency, and efficiency. 10. Which of the followings is NOT the roles of financial manager? A) Forecasting and Planning. B) Deal with financial market. C) Financing decision. D) Advertise the product. Show Answer Correct Answer: D) Advertise the product. 11. In a financial market, the price to borrow money is called the? A) Deposit. B) Interest Rate. C) Credit. D) Cost. Show Answer Correct Answer: B) Interest Rate. 12. Which of the following would not be financed from working capital? A) Accounts receivable. B) Cash float. C) Credit sales. D) A new personal computer for the office. Show Answer Correct Answer: D) A new personal computer for the office. 13. Mr. Singh's company uses labour intensive technique, he requires ..... fixed capital A) More. B) Less. C) No. D) None of the above. Show Answer Correct Answer: B) Less. 14. Accounting profits and cash flows are generally: A) Unequal because of how income is recognized according to GAAP. B) Unequal because cash inflows must occur before revenue recognition. C) All the above. D) None of the above. Show Answer Correct Answer: A) Unequal because of how income is recognized according to GAAP. 15. Also called "profit" . Earnings or margin A) Income. B) Gross Profit. C) Pretax Income. D) Other Income. Show Answer Correct Answer: A) Income. 16. Corporate bonds A) Short term debt. B) Long term debt. C) All the above. D) None of the above. Show Answer Correct Answer: B) Long term debt. 17. Crucial decision made by financial manager it's concerned in borrowing and funds allocation for investment is? A) Marketing Decision. B) Investment Decision. C) Purchase Decision. D) Financing Decision. Show Answer Correct Answer: D) Financing Decision. 18. Financial management is essential for businesses because it: A) Enables efficient allocation of resources and strategic decision-making. B) Enhances financial performance and profitability. C) Helps attract investors and secure external funding. D) Assists in managing financial risks and uncertainties. E) All of the above. Show Answer Correct Answer: E) All of the above. 19. What has the same meaning as positive cash flow? A) Surplus. B) Deficit. C) All the above. D) None of the above. Show Answer Correct Answer: A) Surplus. 20. The capital budget is associated with. A) Long terms and short terms assets. B) Fixed assets. C) Long terms assets. D) Short term assets. Show Answer Correct Answer: C) Long terms assets. 21. This is the total amount of net income the company decides to keep. A) Retained Income. B) Financial Income. C) Management Income. D) Shareholder equity. Show Answer Correct Answer: A) Retained Income. 22. Entering multiple foreign markets to expand sales volume and customer segments primarily delivers which reward of international finance? A) Cheaper sources of capital. B) Access to larger global markets. C) Higher profit opportunities. D) Portfolio diversification. Show Answer Correct Answer: B) Access to larger global markets. 23. What does risk refer to in financial management? A) Risk is the process of maximizing profits without any losses. B) Risk refers to the total amount of capital invested. C) Risk is the guaranteed return on investments. D) Risk in financial management refers to the potential for loss or uncertainty in investment returns. Show Answer Correct Answer: D) Risk in financial management refers to the potential for loss or uncertainty in investment returns. 24. The proper utilization of resources to achieve the goals and objectives is called ..... A) Price. B) Plan. C) Management. D) Investment. Show Answer Correct Answer: C) Management. 25. Deficit means A) You have more revenue. B) You have more money out than money in. C) You are in the black. D) You are in debit. Show Answer Correct Answer: B) You have more money out than money in. ← 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