This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 9 Financial Management – Quiz 67 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 9 Financial Management Quiz 67 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Apakah langkah pertama dalam proses pengurusan kewangan? A) Menilai kedudukan kewangan. B) Melaksanakan pelan kewangan. C) Menetapkan matlamat kewangan. D) Mencipta pelan kewangan. Show Answer Correct Answer: C) Menetapkan matlamat kewangan. 2. What is the role of financial manager in relation to raising funds? A) To ensure enough cash and liquidity to meet business obligations. B) To invest all funds in risky ventures. C) To avoid raising any funds for the business. D) To keep all funds in a savings account. Show Answer Correct Answer: A) To ensure enough cash and liquidity to meet business obligations. 3. Used by financial professionals to focus attention on current and prospective inflows and outflows of cash A) Cash flow approach. B) Accrual-based Approach. C) Income Statement. D) Statement of Retained Earnings. Show Answer Correct Answer: A) Cash flow approach. 4. In Financial management, a function that relates to management of funds earned from active spending is called ..... A) Allocation of funds. B) Earning funds. C) Obtaining funds. D) Planning for funds. Show Answer Correct Answer: A) Allocation of funds. 5. What is a key characteristic of financial forecasting? A) Assumption-based. B) Short to Long Term. C) Randomized. D) No monitoring required. Show Answer Correct Answer: A) Assumption-based. 6. Which of the following functions is performed by freely fluctuating exchange rates? A) They tend to correct a trade surplus or deficit. B) They make imports cheaper and exports more expensive. C) They eliminate the opportunity for currency speculation. D) They eliminate business' exposure to currency risk. Show Answer Correct Answer: A) They tend to correct a trade surplus or deficit. 7. What is dividend policy? A) A policy that only deals with cash payments to shareholders. B) The decision about retaining earnings for reinvestment. C) The framework for determining how much and when to pay dividends to shareholders. D) A regulatory requirement for public companies. Show Answer Correct Answer: C) The framework for determining how much and when to pay dividends to shareholders. 8. A source of supply of foreign exchange is ..... A) Imports. B) Exports. C) Donations. D) Gifts. Show Answer Correct Answer: B) Exports. 9. Financial leverage refers to: A) Funds provided by owners of a company. B) The degree to which a firm relies on debt financing. C) Short-term financing options for small businesses. D) The calculation of net present value. Show Answer Correct Answer: B) The degree to which a firm relies on debt financing. 10. Suppose you postpone consumption and invest at 9% when inflation is 3%. What is the approximate real rate of your reward for saving? A) 3%. B) 5%. C) 6%. D) 7%. Show Answer Correct Answer: C) 6%. 11. The financial goal of a corporation is to maximize: A) Sales. B) Profits. C) Market value of the firm. D) Managers' benefits. Show Answer Correct Answer: C) Market value of the firm. 12. Puan Iza's income:Salary:RM4500Comission:RM820Rental received:RM650Dividend:RM700Calculate active income of Puan Iza. A) RM4500. B) RM5320. C) RM5970. D) RM6670. Show Answer Correct Answer: B) RM5320. 13. Financial Planning link A) (a) Investment and dividend decision. B) (b) Investment and financing decision. C) C) Dividend and financing decision. D) (d) None of the above. Show Answer Correct Answer: B) (b) Investment and financing decision. 14. Fixed assets are items of value that will be held for more than one year. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 15. Medicaid is a ..... health insurance program to help people who cannot afford health care costs. A) Private. B) Government. C) Military. D) None of the above. Show Answer Correct Answer: B) Government. 16. What is the present value of a stream of annual end-of-the-year annuity cash flows if the discount rate is 0%, and the cash flows of $ 50 last for 20 years? A) Less than $ 1, 000. B) Exactly $ 1, 000. C) More than $ 1, 000. D) This question cannot be answered because we have an interest rate of 0.0%. Show Answer Correct Answer: B) Exactly $ 1, 000. 17. Financial controller is responsible A) Cash management. B) Credit management. C) Securities management. D) None of these. Show Answer Correct Answer: D) None of these. 18. When the stock market index is rising, a company may issue ..... in order to meet its financial requirements. A) Debentures. B) Bonds. C) Equity shares. D) None of the above. Show Answer Correct Answer: C) Equity shares. 19. From the following data find out combined leverage. EBIT Rs.10, 00, 000; Fixed cost Rs.2, 00, 000; EBT Rs.8, 00, 000. A) 7.53. B) 7.35. C) 5.73. D) 3.75. Show Answer Correct Answer: D) 3.75. 20. Nurin plans to save RM400 per month for 2 years to buy a new laptop. How much will she have saved at the end of the period? A) RM4800. B) RM8000. C) RM12000. D) RM9600. Show Answer Correct Answer: D) RM9600. 21. Which of the following is NOT listed as a key objective of financial management? A) Profitability. B) Liquidity. C) Market Share. D) Efficiency. Show Answer Correct Answer: C) Market Share. 22. The concept of Financial management is. A) Profit maximization. B) All features of obtaining and using financial resources for company operations. C) Organization of funds. D) Effective Management of every company. Show Answer Correct Answer: B) All features of obtaining and using financial resources for company operations. 23. This type of share allows shareholders to convert current shares to equity shares. A) Cumulative preference share. B) Irredeemable preference Share. C) Non-cumulative preference share. D) Convertible preference share. Show Answer Correct Answer: D) Convertible preference share. 24. What are the three main types of financial statements? A) Income statement, balance sheet, and cash flow statement. B) Profit statement, equity sheet, and liquidity statement. C) Expense statement, liability sheet, and investment statement. D) Revenue statement, asset sheet, and budget statement. Show Answer Correct Answer: A) Income statement, balance sheet, and cash flow statement. 25. Which of the following actions is LEAST likely to increase shareholder wealth? A) The weighted average cost of capital is decreased by a recent financing decision. B) The financial rewards of directors are linked to increasing earnings per share. C) The board of directors decides to invest in a project with a positive NPV. D) The annual report declares full compliance with the corporate governance code. Show Answer Correct Answer: B) The financial rewards of directors are linked to increasing earnings per share. ← 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