This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 9 Financial Management – Quiz 70 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 9 Financial Management Quiz 70 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Safe mode by which firms perform worldwide business is A) Licencing. B) Franchising. C) International trade. D) Establishment of new subsidiary. Show Answer Correct Answer: C) International trade. 2. Which of the following cannot be the reason for any company to offer themselves for a sale. A) To gain economies of Scale. B) Utilisation of resources. C) Option 5. D) Tax benefit. E) Difference in culture. Show Answer Correct Answer: E) Difference in culture. 3. Financial management contributes to organizational success by: A) Ensuring efficient use of financial resources. B) Avoiding financial risks completely. C) Increasing product prices only. D) Reducing workforce size. Show Answer Correct Answer: A) Ensuring efficient use of financial resources. 4. Explain the concept of working capital in entrepreneurial finance. A) Working capital is the amount of money a company has in its bank account. B) Working capital is the total assets of a company. C) Working capital is the difference between current assets and current liabilities. D) Working capital is the long-term investments of a company. Show Answer Correct Answer: C) Working capital is the difference between current assets and current liabilities. 5. Profitability refers to: A) How much money is made on selling your products. B) The ability to make a financial return from business activities. C) The main driving purpose for running a business. D) The return on capital and growth in sales. Show Answer Correct Answer: B) The ability to make a financial return from business activities. 6. Yang bukan termasuk ke dalam operating expenses adalah A) Biaya bunga. B) Biaya Pemasaran. C) Biaya umum & adm. D) Biaya Penjualan. Show Answer Correct Answer: A) Biaya bunga. 7. Which among the following figures is not relevant while calculating the cost of the redeemable preference shares? A) Earnings per share. B) Flotation cost. C) Discount. D) None of the above. Show Answer Correct Answer: A) Earnings per share. 8. Which of the following is not a long term source of finance A) Debentures. B) Equity capital. C) Treasury bills. D) Preference shares. Show Answer Correct Answer: C) Treasury bills. 9. Which financial concept refers to the separation of ownership and control in a corporation? A) Financial leverage. B) Shareholder activism. C) Corporate governance. D) Stakeholder management. Show Answer Correct Answer: C) Corporate governance. 10. Which of the following is NOT the money market instrument? A) Certificate of deposit. B) Treasury bills. C) Debentures. D) Call money. Show Answer Correct Answer: C) Debentures. 11. Which of the following is considered as cash inflow from the point of view of Lessor? A) Cost of Asset. B) Tax on Annual lease rent. C) Annual lease rentals. D) Refund of initial deposit. Show Answer Correct Answer: C) Annual lease rentals. 12. Which of the following is a significant challenge in financial management? A) Consistent market stability. B) Predictable currency exchange rates. C) Regulatory changes. D) Abundant and low-cost capital. Show Answer Correct Answer: C) Regulatory changes. 13. Leverage refers to the effects that variable costs have on the returns that shareholders earn A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 14. It pertains to the ability of the firm to yield a sufficient amount of return on company sales asset and invested capital. A) LIQUIDITY. B) PROFITABILITY. C) All the above. D) None of the above. Show Answer Correct Answer: B) PROFITABILITY. 15. What does the term 'APR' stand for in finance? A) Annual Payment Rate. B) Annual Percentage Rate. C) Adjustable Payment Rate. D) Average Payment Rate. Show Answer Correct Answer: B) Annual Percentage Rate. 16. A B C analysis is useful for analyzing the inventories? A) Based on their quality. B) Based on physical volume. C) Based on their usage and value. D) All the above. Show Answer Correct Answer: C) Based on their usage and value. 17. .... is a motive of holding cash? A) A. Transaction motive. B) B. Precaution motive. C) C. Capital investment. D) None of the above. Show Answer Correct Answer: B) B. Precaution motive. 18. Short term or current assets Decisions are known as: A) Short term investment decisions. B) Working capital decisions. C) Both. D) None. Show Answer Correct Answer: C) Both. 19. Which of the following is the characteristics of the money market instruments? A) Long term maturity. B) High liquidity. C) Issued by the Governments only. D) High risk and high return. Show Answer Correct Answer: B) High liquidity. 20. Optimal capital structure consists of both the mix of debt and equity A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 21. A new project being considered by BLW Co would require 1, 000 hours of skilled labour. The current workforce is already fully employed but more workers can be hired in at a cost of $ 20 per hour. The current workers are paid $ 15 per hour on a project that earns a contribution of $ 10 per hour.What is the relevant cost of labour to be included in the project appraisal? A) $ 10, 000. B) $ 15, 000. C) $ 20, 000. D) $ 25, 000. Show Answer Correct Answer: C) $ 20, 000. 22. Jose wants to buy a new pair of Air Jordan 11's. They cost $ 300. He wants to buy them in 4 months. How much money should he save each month in order to buy the shoes? A) $ 100. B) $ 50. C) $ 75. D) None of the above. Show Answer Correct Answer: C) $ 75. 23. The Appropriate objectives of enterprises is A) Maximization of sales. B) Maximization of owner's wealth. C) Maximization of profits. D) None of the above. Show Answer Correct Answer: B) Maximization of owner's wealth. 24. What is the purpose of a credit card? A) To encourage overspending. B) To build credit history and provide convenience in transactions. C) To avoid financial responsibility. D) To invest in the stock market. Show Answer Correct Answer: B) To build credit history and provide convenience in transactions. 25. The cost of equity is higher than cost of debt because: A) Dividend is not tax deductible. B) Interest is tax deductible. C) Equity is more risky. D) All of the above. Show Answer Correct Answer: D) All of the above. ← 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