This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 9 Financial Management – Quiz 66 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 9 Financial Management Quiz 66 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The after-tax cost of debt ..... the before-tax cost of debt for a firm that has a positive marginal tax rate. A) Is always greater than. B) Is always equal to. C) Is always less than. D) May be greater than or less than. Show Answer Correct Answer: C) Is always less than. 2. You just rented a new apartment and you pay $ 950.00 every month, this is a A) Variable expense. B) Periodic expense. C) Fixed expense. D) Random expense. Show Answer Correct Answer: C) Fixed expense. 3. Putting Money Away for Later * A) Savings. B) Net Pay. C) Loan. D) Interest. Show Answer Correct Answer: A) Savings. 4. A $ 100 deposit today that earns an annual interest rate of 10% is worth how much at the end of two years? Assume all interest received at the end of the first year is reinvested the second year. A) $ 121. B) $ 120. C) $ 141. D) $ 122. Show Answer Correct Answer: A) $ 121. 5. Financial planning and budgeting: A) Helps businesses set financial goals, allocate resources, and create budgets to guide their operations. B) Ensures that a company has the resources it needs to achieve its goals. C) Both of the above. D) Neither of the above. Show Answer Correct Answer: A) Helps businesses set financial goals, allocate resources, and create budgets to guide their operations. 6. Which of the following statements are correct? (1) Share option schemes always reward good performance by managers (2) Performance-related pay can encourage dysfunctional behaviour (3) Value for money as an objective in not-for-profit organisations requires the pursuit of economy, efficiency and effectiveness. A) 1 and 2 only. B) 1 and 3 only. C) 2 and 3 only. D) 1, 2 and 3. Show Answer Correct Answer: C) 2 and 3 only. 7. The concept which provides a link between investment and financing decision A) Trading on equity. B) Financial leverage. C) Capital structure. D) Financial Planning. Show Answer Correct Answer: D) Financial Planning. 8. A farmer wants to build a permanent building as a storage shed for its half an acre farm. What type of loan should the farmer apply for? A) Short-term loan. B) Medium-term loan. C) Long-term loan. D) None of the above. Show Answer Correct Answer: B) Medium-term loan. 9. Which of the following statements are correct? 1. Maximising market share is an example of a financial objective 2. Shareholder wealth maximisation is the primary financial objective for a company listed on a stock exchange 3. Financial objectives should be quantitative so that their achievement can be measured A) 1 and 2 only. B) 1 and 3 only. C) 2 and 3 only. D) 1, 2 and 3. Show Answer Correct Answer: C) 2 and 3 only. 10. Mm approach is known as theory of irrelevance when it is assume that there is A) Absence of taxes. B) Market all assume to be perfect. C) Investor act rationally. D) All of the above. Show Answer Correct Answer: D) All of the above. 11. Which of the following statements are correct?(1) A certificate of deposit is an example of a money market instrument(2) Money market deposits are short-term loans between organisations such as banks(3) Treasury bills are bought and sold on a discount basis A) 1 and 2 only. B) 1 and 3 only. C) 2 and 3 only. D) 1, 2 and 3. Show Answer Correct Answer: D) 1, 2 and 3. 12. Items you buy:tangible object that satisfies wants A) Service. B) Needs. C) Goods. D) Wants. Show Answer Correct Answer: C) Goods. 13. Which of the following is a disadvantage of profit maximization? A) Considers time value of money. B) Encourages ethical practices. C) Ignores social responsibility. D) Ensures fair distribution of income. Show Answer Correct Answer: C) Ignores social responsibility. 14. Berikut adalah beberapa panduan bagi manajer keuangan internasional untuk meminimalkan risiko mata uang, kecuali A) Mengurangi penggunaan mata uang asing dalam transaksi. B) Carilah saran ahli dari bank atau konsultan untuk mengatur program dan strategi. C) Tentukan tingkat risiko yang dapat ditoleransi perusahaan. D) Memantau perubahan dalam mata uang utama dapat membantu mengurangi kesalahan mahal. Show Answer Correct Answer: A) Mengurangi penggunaan mata uang asing dalam transaksi. 15. A method of inventory recording which produce high inventory in balance sheet is classified as A) Last out receivable. B) First out receivable. C) First in first out. D) Last in first out. Show Answer Correct Answer: C) First in first out. 16. Mega sporting events, such as the Super Bowl and World Cup, have a large economic impact on host cities. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 17. 18-The following cash flow are providedYear 0 = Cash outflow = $ 200, 000Year 1 = Cash Inflow = $ 25, 000, Year 2 = $ 35, 000, Year 3 = $ 70, 000, Year 4 = $ 300, 000 Calculate payback period? A) A = 4 Ys. B) B = 3.7 Ys. C) C = 3.233 Ys. D) D = 3.15 Ys. Show Answer Correct Answer: C) C = 3.233 Ys. 18. If a company offers stock for sale for the first time and the proceeds go to the company, then this is a sale in the primary market. A) TRUE. B) FALSE. C) All the above. D) None of the above. Show Answer Correct Answer: A) TRUE. 19. Short-term cash flow improvement may not be achieved by A) Increasing trade payables. B) Reducing trade payables. C) Reducing inventories. D) Reducing trade receivables. Show Answer Correct Answer: B) Reducing trade payables. 20. Place where metals are made into A) Mint. B) Coin. C) Metals. D) Coinage. Show Answer Correct Answer: A) Mint. 21. In weighted average cost of capital the term "weight" refers to A) Rate of interest. B) Portion of total capital raised by the firm. C) Income tax consideration. D) Proportion of each source of capital raised. Show Answer Correct Answer: D) Proportion of each source of capital raised. 22. ..... means current value of a future amount of money evaluated at a given interest rate? A) Compounding. B) Discounting. C) Continuous rate. D) Nominal rate. Show Answer Correct Answer: B) Discounting. 23. EPS is calculated on the basis of ..... A) NPAT. B) NPBT. C) NAPT-Preference dividend. D) MPS. Show Answer Correct Answer: C) NAPT-Preference dividend. 24. Capital budgeting related to A) Long term assets. B) Short term assets. C) Long term assets and short term assets. D) Fixed assets. Show Answer Correct Answer: A) Long term assets. 25. The concept which makes sure the availability of right amount of finance at the right time is called A) (a) Financial Planning. B) (b) Capital Structure . C) C) Working Capital. D) (d) Fixed Capital. Show Answer Correct Answer: A) (a) Financial Planning. ← 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