This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 9 Financial Management – Quiz 74 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 9 Financial Management Quiz 74 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is a key aspect of financial planning within financial management? A) Managing daily operational tasks. B) Forecasting financial needs and estimating capital requirements. C) Developing new marketing campaigns. D) Hiring and training new employees. Show Answer Correct Answer: B) Forecasting financial needs and estimating capital requirements. 2. Average cost of capital in case of optimum capital structure is- A) Highest. B) Lowest. C) Zero. D) None of these. Show Answer Correct Answer: B) Lowest. 3. What are the 2 parts of a budget A) Income and expenses. B) Paychecks and Gifts. C) Fixed and Flexible. D) None of the above. Show Answer Correct Answer: A) Income and expenses. 4. What is the cost of capital? A) Cost of the company funds. B) Cumulative calculation of the capital structure. C) Cost of capital investment in the company. D) Cost of the products or services of the company. Show Answer Correct Answer: A) Cost of the company funds. 5. A ..... is a broad term describing any marketplace where buyers and sellers participate in the trade of assets such as equities, bonds, currencies and derivatives ..... are typically defined by having transparent pricing, basic regulations on trading, costs and fees, and market forces determining the prices of securities that trade. A) Market. B) Bank. C) Financial Market. D) Public Market. Show Answer Correct Answer: C) Financial Market. 6. Which is the better buy? Shampoo A is $ 4.59 for 32 ozs. and shampoo B is $ 8.86 for 46 ozs.? A) Shampoo A. B) Shampoo B. C) Both are equally good. D) Neither A or B. Show Answer Correct Answer: A) Shampoo A. 7. The profit maximization objective has been criticized on the basis of: A) Ignore risk factor. B) Ignore time value of money. C) Ambiguity. D) All of these. Show Answer Correct Answer: D) All of these. 8. The higher the degree of operating leverage, the more sensitive operating income is to the changes in sales. A) TRUE. B) FALSE. C) All the above. D) None of the above. Show Answer Correct Answer: A) TRUE. 9. What are the strategies for effective cash flow management in a small business? A) Monitoring and forecasting cash flow, reducing expenses, increasing sales, managing accounts receivable and accounts payable, and maintaining a cash reserve. B) Ignoring cash flow altogether. C) Spending money without tracking expenses. D) Not worrying about accounts receivable and accounts payable. Show Answer Correct Answer: A) Monitoring and forecasting cash flow, reducing expenses, increasing sales, managing accounts receivable and accounts payable, and maintaining a cash reserve. 10. What is the role of the CFO in a firm? A) Managing firm finances. B) Overseeing resource mobilization. C) Managing firm operations. D) Providing government services. Show Answer Correct Answer: A) Managing firm finances. 11. How is financial management training beneficial for businesses? A) It improves customer satisfaction. B) It increases the availability of capital. C) It allows for more informed decision making. D) It provides tax benefits. Show Answer Correct Answer: C) It allows for more informed decision making. 12. Withdrawals A) Debit. B) Credit. C) All the above. D) None of the above. Show Answer Correct Answer: A) Debit. 13. Uncertainty A) Risk. B) Problem. C) Return. D) Investment. Show Answer Correct Answer: A) Risk. 14. Which financial statement provides an overview of a company's financial position at a specific point in time? A) Income statement. B) Cash flow statement. C) Balance sheet. D) Statement of retained earnings. Show Answer Correct Answer: C) Balance sheet. 15. I like to help others, so I am happy to do this. A) Spending. B) Earning. C) Saving. D) Donating. Show Answer Correct Answer: D) Donating. 16. RENT, HOUSE INSTALMENT, INSURANCE, AND CREDIT CARD PAYMENT ARE: A) FIXED EXPENSES. B) VARIABLE EXPENSES. C) All the above. D) None of the above. Show Answer Correct Answer: A) FIXED EXPENSES. 17. Financial Management is a ..... process A) Dynamic. B) Rigid. C) Continuous. D) Abnormal. Show Answer Correct Answer: C) Continuous. 18. Corporate spending function that trying to get funds with minimal costs and the most favourable terms is called ..... A) The function to use. B) The function to allocate. C) The function of meeting funding. D) The function of management. Show Answer Correct Answer: C) The function of meeting funding. 19. Modal kerja merupakan investasi dalam harta jangka pendek atau investasi dalam harta lancar (current assets) yaitu: A) Kas, Piutang, Persediaan dan Hutang jangka panjang. B) Kas, Piutang, Persediaan dan Hutang jangka pendek. C) Gross working capital. D) Jawaban a, b dan c semua benar. Show Answer Correct Answer: B) Kas, Piutang, Persediaan dan Hutang jangka pendek. 20. The difference between current assets and current liabilities is called ..... A) Net working capital. B) Gross working capital. C) Fixed capital. D) Working capital. Show Answer Correct Answer: A) Net working capital. 21. It is possible that the company has profits but its cash flow is negative. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 22. THE PART OF THE PROFIT WHICH IS DISTRIBUTED TO THE SHAREHOLDERS IS CALLED A) RETAINED EARNING. B) CORPORATE SAVING. C) DIVIDEND. D) DEBENTURE. Show Answer Correct Answer: C) DIVIDEND. 23. Used in everyday exchange transactions in place of actual bank notes A) Plastic Money. B) Credit Card. C) Debit Card. D) Prepaid Cash Card. Show Answer Correct Answer: A) Plastic Money. 24. Which is not a quick asset? A) Cash equivalents. B) Notes receivable. C) Inventories. D) Cash substitutes. E) NOT IN THE CHOICES. Show Answer Correct Answer: C) Inventories. 25. Taxes are fees that the government ..... people to pay in order to live and work in their state and the USA. A) Does not require. B) Requires. C) All the above. D) None of the above. Show Answer Correct Answer: B) Requires. ← 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