This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 9 Financial Management – Quiz 75 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 9 Financial Management Quiz 75 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Traditional approach focus on ..... A) Short term. B) Long term. C) Mid term. D) None of the above. Show Answer Correct Answer: B) Long term. 2. Which investment fund has invested in Byju's? A) Sequoia Capital India and Peak XV. B) Chan Zuckerberg Initiative. C) Deloitte company. D) All of the above. Show Answer Correct Answer: D) All of the above. 3. Calculate Financial Leverage:Profit before depreciation Rs.80, 00, 000; Depreciation Rs.12, 50, 000; Tax rate 40%; EPS Rs.4; No. of equity shares Rs.3, 15, 000. A) 3.21. B) 2.31. C) 1.33. D) 3.11. Show Answer Correct Answer: A) 3.21. 4. What is the major objective of financial management? A) Profit Maximization. B) Wealth Maximization. C) None of them. D) None of the above. Show Answer Correct Answer: B) Wealth Maximization. 5. Which of the following statements is not true with respect to commercial papers? A) It cannot be issued by body corporate. B) It is also called as corporate paper. C) It is mostly used to finance current transaction of a company. D) It helps to meet the seasonal need of funds. Show Answer Correct Answer: A) It cannot be issued by body corporate. 6. Working capital management is concerned with A) How a firm can best manage its cash flows as they arise in its day-to-day operations. B) How a firm should raise money to fund its investments. C) What long-term investments a firm should undertake. D) Managing a firm's capital stock. Show Answer Correct Answer: A) How a firm can best manage its cash flows as they arise in its day-to-day operations. 7. A Co, pays a dividend of 20% on the equity shares of face value of Rs.100 each. find out the expected market value of the equity share given that the dividend rate is expected to remain the same and the required rate of return is 15%. A) 133.33. B) 331.33. C) 111.33. D) 333.11. Show Answer Correct Answer: A) 133.33. 8. ROI measures the profitability of an investment A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 9. A proper balance between risk and return is ..... A) Liquidity. B) Profitability. C) Risk-Return trade off. D) Finance manager. Show Answer Correct Answer: C) Risk-Return trade off. 10. What journal entry will be passed for writing off preliminary expenses at the time of internal reconstruction? A) Debit Preliminary expenses and credit Profit&Loss A/c. B) Debit Preliminary expenses and Credit Capital reduction A/C. C) Debit Profit&Loss A/c and credit preliminary expenses A/c. D) Debtit Capital Reduction A/c and Credit preliminary expenses A/c. Show Answer Correct Answer: D) Debtit Capital Reduction A/c and Credit preliminary expenses A/c. 11. Which TERM refers to the numerical value needed to calculate the NPV of an investment? A) Ratio. B) Net cash flow. C) Discounted cash flows. D) Discount factor. Show Answer Correct Answer: D) Discount factor. 12. Which budgeting rule divides income into needs, wants and savings in percent in same sequence? A) 30/40/30 rule. B) 50/30/20 rule. C) 50/20/30 rule. D) 40/30/30 rule. Show Answer Correct Answer: B) 50/30/20 rule. 13. 'Fundamental concept in investing, it combines variety of assets to reduce risk' pernyataan tersebut merupakan prinsip keuangan 'diversifikasi'. A) TRUE. B) FALSE. C) All the above. D) None of the above. Show Answer Correct Answer: A) TRUE. 14. What is the primary purpose of financial management? A) To maximize sales revenue. B) To manage human resources effectively. C) To plan, organize, control, and monitor financial resources for organizational objectives. D) To develop new products and services. Show Answer Correct Answer: C) To plan, organize, control, and monitor financial resources for organizational objectives. 15. Which of the following is component in cash receipt. A) Purchasing materials. B) Wages. C) Dividend received. D) Acquire fixed asset. Show Answer Correct Answer: C) Dividend received. 16. The shareholders receiving a stock dividend receives A) A share of common stock of equal value to their existing share of common stock. B) Cash. C) Additional shares of common stock and cash. D) Right share. Show Answer Correct Answer: D) Right share. 17. Financial Structure represents A) Debt and Equity. B) Equity. C) Equity and Liabilities. D) Equity, Liabilities, and Assets. Show Answer Correct Answer: D) Equity, Liabilities, and Assets. 18. Operating leverage occurs due to the existing of ..... in the firm A) Variable cost. B) Operating cost. C) Fixed cost. D) EBIT. Show Answer Correct Answer: C) Fixed cost. 19. A manufacturing company has credit sales of $ 10 million. It has a gross profit margin of 65%. Payable days is 25 days (assume 365 days per year), Receivables days is 42 days and the operating cycle is 80 days.What is the level of inventory? A) $ 124, 658. B) $ 604, 110. C) $ 1, 121, 918. D) $ 1, 726, 027. Show Answer Correct Answer: B) $ 604, 110. 20. Cost of capital is the maximum rate of return expected by the investors A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 21. If existing share holders can share the control then they may go for debt. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 22. Interest Expense A) Debit. B) Credit. C) All the above. D) None of the above. Show Answer Correct Answer: A) Debit. 23. Calculate the cash flow for Mr. RabbaniHitung aliran tunai Encik Rabbani.Active Income /Pendapatan Aktif:RM2, 000Passive Income / Pendapatan Pasif:RM350Fixed Expenses / Belanja tetap:RM 2, 300Variable Expenses / Belanja Berubah:RM 250Then, determine whether it is Deficit or Surplus.Pastikan ialah lebihan atau kurangan. A) -200 (Deficit / kurangan). B) 500 (Surplus / Lebihan). C) 200 (Surplus / Lebihan). D) -800 (Deficit / kurangan ). Show Answer Correct Answer: A) -200 (Deficit / kurangan). 24. Market value of shares is influenced by A) Financing decision. B) Investment decision. C) Dividend decision. D) Financial decision. Show Answer Correct Answer: D) Financial decision. 25. Financial leverage is also called as ..... A) Financial Risk. B) Financial return. C) Trading on equity. D) Fixed charges leverage. Show Answer Correct Answer: C) Trading on equity. ← 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