This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 9 Financial Management – Quiz 63 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 9 Financial Management Quiz 63 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is Financial Analysis? A) The creation of a budget. B) The process of reviewing financial documents to make informed business decisions. C) The calculation of taxes. D) The process of saving money. Show Answer Correct Answer: B) The process of reviewing financial documents to make informed business decisions. 2. Capital structure means the portion of current assets and current liabilities. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 3. Which of the following bond that carries high yield and high risk? A) Zero Coupon Bond. B) Junk Bond. C) Bunny Bond. D) Bearer Bond. Show Answer Correct Answer: B) Junk Bond. 4. It refers to the net inflows and outflows of money that a company or project has in a given period. A) Cash flow. B) Utility. C) Bills. D) Costs. Show Answer Correct Answer: A) Cash flow. 5. The capital structure decision involves: A) Determining the optimal mix of debt and equity financing. B) Minimizing the cost of capital. C) Maximizing shareholder value. D) All of the above. Show Answer Correct Answer: A) Determining the optimal mix of debt and equity financing. 6. What are the 2 types of credit cards? A) Private Label and General Label. B) Private Label and Public Label. C) Public Label and General Label. D) Plastic and Metal. Show Answer Correct Answer: A) Private Label and General Label. 7. An individual stock required return is equal to risk-free rate plus bearing risk premium is an explanation of A) Security market line. B) Capital market line. C) Aggregate market line. D) Beta market line. Show Answer Correct Answer: A) Security market line. 8. Agency theory examines the relationship between the A) Shareholders of the firm and the firm's investment banker. B) Owners of the firm and the managers of the firm. C) Board of directors and large institutional investors. D) Shareholders and the firm's transfer agent. Show Answer Correct Answer: B) Owners of the firm and the managers of the firm. 9. A firm starts its year with positive net working capital. During the year, the firm acquires more short-term debt than it does short-term assets. This means that: A) The ending net working capital must be negative. B) Accounts payable and inventory increased during the year. C) The ending net working capital can be positive, negative, or equal to zero. D) None of the above. Show Answer Correct Answer: C) The ending net working capital can be positive, negative, or equal to zero. 10. The rate of interest payable on a bond is also caled: A) Effective rate of interest. B) Yield to maturity. C) Coupon rate. D) Internal rate of return. Show Answer Correct Answer: C) Coupon rate. 11. If the nominal rate of interest is 10% per annum and there is quarterly compounding, the effective rate of interest will be: A) 10% per annum. B) 10.10 per annum. C) 10.25%per annum. D) 10.38% per annum. Show Answer Correct Answer: D) 10.38% per annum. 12. What is the main function of a financial manager related to profit planning? A) To ignore a company's profits. B) To waste a company's profits. C) To hide a company's profits. D) To ensure the proper use of a company's profits. Show Answer Correct Answer: D) To ensure the proper use of a company's profits. 13. Which of the following government policies would NOT tend to raise national income over time? A) Increased expenditure on infrastructure. B) Tax cuts to encourage higher spending by consumers. C) Supply side policies to increase labour flexibility. D) Incentives to encourage personal saving. Show Answer Correct Answer: D) Incentives to encourage personal saving. 14. Participating in local causes or volunteering your time (and your staff's time) in community events says a lot about a company's sincerity. A) Volunteering. B) Ethical labor practices. C) All the above. D) None of the above. Show Answer Correct Answer: A) Volunteering. 15. A comprehensive financial plan should include wealth build-up, debts managements, insurance coverage, expenses and purification of property. A) TRUE. B) FALSE. C) All the above. D) None of the above. Show Answer Correct Answer: A) TRUE. 16. The advantage of Debt-Financing is: A) Interest is Tax deductible. B) It reduces WACC. C) Does not dilute owners control. D) All of the above. Show Answer Correct Answer: D) All of the above. 17. Which financial goal is considered more comprehensive? A) A short-term financial goal. B) A comprehensive financial goal. C) A specific savings plan. D) A vague financial target. Show Answer Correct Answer: B) A comprehensive financial goal. 18. Berikut ini yang bukan kelebihan dari instrumen investasi dalam bentuk emas A) Lindung nilai terhadap inflasi. B) Aset safe haven. C) Tidak menghasilkan pendapatan. D) Likuiditas. Show Answer Correct Answer: C) Tidak menghasilkan pendapatan. 19. Which information is not included in the work sheet heading? A) The period covered. B) Name of the accounting form. C) Business name. D) Accountant's name. Show Answer Correct Answer: D) Accountant's name. 20. ..... is money supplied by investors, banks, or owners of a business. A) Equity. B) Capital. C) Income statement. D) Property. Show Answer Correct Answer: B) Capital. 21. Manajemen Keuangan Perusahaan mengatur A) Kegiatan Pendanaan. B) Kegiatan Investasi. C) Kebijakan Dividen. D) Semua jawaban di atas benar. Show Answer Correct Answer: D) Semua jawaban di atas benar. 22. The fixed capital requirement of a business involving labour intensive production will be A) Less. B) More. C) Same. D) None of the above. Show Answer Correct Answer: A) Less. 23. In which of the following lease types, the lessee has the option to purchase the asset at the end of lease period? A) Bipartitle lease. B) Tripartitle lease. C) Open ended lease. D) Close ended lease. Show Answer Correct Answer: C) Open ended lease. 24. What role does a financial advisor play in business decision-making? A) Provides legal advice. B) Offers marketing strategies. C) Gives financial guidance. D) Manages human resources. Show Answer Correct Answer: C) Gives financial guidance. 25. Which of the following is a spontaneous source of financing? A) Bank Overdraft. B) Trade credit. C) Commercial paper. D) Short-term loans. Show Answer Correct Answer: B) Trade credit. ← 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