This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 9 Financial Management – Quiz 73 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 9 Financial Management Quiz 73 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Applying for 5 credit cards in one day will A) Improve your credit score. B) Hurt your credit score. C) All the above. D) None of the above. Show Answer Correct Answer: B) Hurt your credit score. 2. What is the main goal of strategic planning in corporate management? A) Minimizing tax liabilities. B) Maximizing the entity's future position. C) Minimizing operational costs. D) Maximizing short-term profits. Show Answer Correct Answer: B) Maximizing the entity's future position. 3. Cost of issuing new shares to the public is known as ..... A) Cost of Equity. B) Cost of Capital. C) Flotation Cost. D) Marginal Cost of Capital. Show Answer Correct Answer: C) Flotation Cost. 4. Q7) Which of the following is not a finance function? A) Investment decisions. B) Cost management. C) Human resource management. D) Risk management. Show Answer Correct Answer: C) Human resource management. 5. Comment on the validity of the following statements, in relation to the Efficient Market Hypothesis. Statement 1:An inefficient market is one in which the value of securities is not always an accurate reflection of the available information. Statement 2:In a semi-strong form market the share price incorporates all past information and all publicly-available information. A) False, False. B) True, False. C) False, True. D) True, True. Show Answer Correct Answer: D) True, True. 6. Apakah tujuan menyimpan rekod perbelanjaan harian? A) Untuk menjejak sumber pendapatan. B) Untuk memastikan perbelanjaan terkawal. C) Untuk merancang persaraan. D) Untuk mengira simpanan. Show Answer Correct Answer: B) Untuk memastikan perbelanjaan terkawal. 7. Financial Decisions involve: A) Investment, financing and dividend decision. B) Investment, financing and sales decision. C) Financing, dividend and cash decision. D) None of these. Show Answer Correct Answer: A) Investment, financing and dividend decision. 8. The most common method by which major airlines acquire new aircraft for their fleets today, which allows them to keep the asset off their balance sheet (in many cases), is: A) Direct outright purchase. B) Operating leases. C) Issuing aircraft-specific bonds. D) Capital leases. Show Answer Correct Answer: B) Operating leases. 9. Adira works as a financial manager in BOYAN Bhd. She is willing to invest RM7, 500 in a project that has an expected value of RM5, 000. Melissa can be described as ..... A) A risk indifferent. B) A risk avoider. C) A risk taker. D) A risk averse. Show Answer Correct Answer: A) A risk indifferent. 10. Proportion of total assets financed by a firm's creditors A) Debt Ratios. B) Profitability Ratios. C) Market Ratios. D) Corporate Taxes. Show Answer Correct Answer: A) Debt Ratios. 11. Funds raised from this source dilutes management's holding A) Debentures. B) Preference shares. C) Equity shares. D) None. Show Answer Correct Answer: C) Equity shares. 12. Calculate Degree of Combined Leverage from the following data:-Sales 50, 000 units @ RM 4 Per unitVariable Cost per unit 40% from sales priceFixed Costs Rm 100, 000Interest charges RM 3668 A) 7.35. B) 6. C) 1.22. D) 5.22. Show Answer Correct Answer: A) 7.35. 13. If equipment costs $ 50, 000 and accumulated depreciation is $ 15, 000, the book A) $ 15, 000. B) $ 50, 000. C) $ 35, 000. D) $ 65, 000. Show Answer Correct Answer: C) $ 35, 000. 14. What is related to debt A) (a) Higher cost higher risk. B) (b) Lower cost higher risk. C) C) High cost low risk. D) (d) Low cost low risk. Show Answer Correct Answer: B) (b) Lower cost higher risk. 15. The ..... is a financial report that shows incoming and outgoing money during an accounting period (often a month, quarter, or year). A) Financial forecast. B) Financial plan. C) Statement of cash flows. D) Income statement. Show Answer Correct Answer: C) Statement of cash flows. 16. Evidence of goods stored in a warehouse and can be used as a collateral for a loan A) Warehouse Receipt. B) Bank Draft. C) Check. D) Commodity Money. Show Answer Correct Answer: A) Warehouse Receipt. 17. Encik Sharul wants to buy a car in two years. His total monthly income is RM 5 600 and his total monthly fixed and variable expenses is RM 3 800. He plans to pay RM 8 400 as the down payment of the car. How much is his monthly savings in order to achieve his financial goal? A) RM 75. B) RM 180. C) RM 275. D) RM 350. Show Answer Correct Answer: D) RM 350. 18. The Phase in which the financial management was considered necessary only during specific events was called as ..... A) Traditional Phase. B) Transitional Phase. C) Modern Phase. D) None of the above. Show Answer Correct Answer: A) Traditional Phase. 19. The total amount of money owed to a business is known as, accounts receivable. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 20. Debenture indicate the A) Short term borrowings of the company. B) Directors shares. C) The investment of equity shareholders. D) Long term borrowings of a company. Show Answer Correct Answer: D) Long term borrowings of a company. 21. What is the primary agency problem that arises between shareholders and management? A) Market volatility. B) Excessive competition. C) Lack of product innovation. D) Conflict of interest. Show Answer Correct Answer: D) Conflict of interest. 22. Bird in hand argument is given by A) Walters model. B) Gordon model. C) Mm model. D) None of above. Show Answer Correct Answer: B) Gordon model. 23. Which statement best defines a Multinational Corporation (MNC)? A) Sells only exports through independent dealers. B) Produces and sells in multiple countries, one headquarters. C) Operates in one country with multiple brands. D) Has many headquarters with no home base. Show Answer Correct Answer: B) Produces and sells in multiple countries, one headquarters. 24. What is the purpose of a capital budget in project planning? A) Allocating funds for employee bonuses. B) Estimating costs for new systems. C) Approving capital expenditure proposals. D) Distributing resources for strategic planning. Show Answer Correct Answer: C) Approving capital expenditure proposals. 25. The size of assets, the profitability and competitiveness are affected by one of the financial decisions. Name the decision A) Working capital decision. B) Capital budgeting. C) Dividend decision. D) Financing decision. Show Answer Correct Answer: B) Capital budgeting. ← 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