This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 9 Financial Management – Quiz 79 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 9 Financial Management Quiz 79 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is the difference between fixed and variable costs? A) Fixed costs are always higher than variable costs. B) Fixed costs do not change with production levels, while variable costs do. C) Both fixed and variable costs change with production levels. D) Fixed costs vary with production levels, while variable costs remain constant. Show Answer Correct Answer: B) Fixed costs do not change with production levels, while variable costs do. 2. Which is the most important decision? A) Finance decision. B) Investment decision. C) Dividend decision. D) All of these. Show Answer Correct Answer: D) All of these. 3. Financial decisions involve the most appropriate mix of ..... & ..... A) Equity & Debt. B) Current assets & Fixed Assets. C) Cash & Bank. D) Profit & Dividend. Show Answer Correct Answer: A) Equity & Debt. 4. Banks require collateral as security for their loans. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 5. What financial reports are commonly prepared by financial managers? A) Sales reports and customer satisfaction surveys. B) Income statement and cash flow statement. C) Marketing plan and advertising budget. D) Report production planning and inventory. Show Answer Correct Answer: B) Income statement and cash flow statement. 6. Mr Smith earns RM 3 500 a month. Every month, his fixed expenses is RM 1 300 and variable expenses is RM 400. He also rent out his other house for RM 450 a month. Calculate his monthly cash flow. A) RM 1 350. B) RM 2 250. C) RM 4 750. D) RM 5 650. Show Answer Correct Answer: B) RM 2 250. 7. Dhruv Ltd. has Rs.100 preference shares redeemable at a premium of 10% with 15 years to maturity. The preference dividend rate is 12%. The cost of the preference capital, assuming that shares were issued at par with the flotation cost of 5% is ..... A) 12.43%. B) 13.02%. C) 14.25%. D) 14.33%. Show Answer Correct Answer: B) 13.02%. 8. Australia became the first country to have a full set of circulation A) 1988. B) 1996'. C) 2005. D) 1983. Show Answer Correct Answer: A) 1988. 9. Capital budgeting decision has a direct impact on liquidity as well as profitability of a business A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 10. EPS = A) PBIT/No. of Eq. Shares. B) PBT/No. of Eq. Shares. C) PAT/No. of Eq. Shares. D) PTESH/No. of Eq. Shares. Show Answer Correct Answer: D) PTESH/No. of Eq. Shares. 11. JCW Co is appraising an opportunity to invest in some new machinery that has the following cash flows.Initial investment-$ 40, 000Net cash inflows for 5 years in advance-$ 12, 000 per annumDecommissioning costs after 5 years-$ 15, 000What is the internal rate of return of the project, calculated using discount factors for 10% and 15% (to the nearest whole %)? A) 11%. B) 13%. C) 14. D) 12%. Show Answer Correct Answer: D) 12%. 12. The ..... Is the proportion of earnings that are paid to common stockholders in the form of cash dividend A) Retention rate. B) Oneplus the retention date. C) Growth rate. D) Dividend payout ratio. Show Answer Correct Answer: A) Retention rate. 13. Q8) In the organization structure of the finance department, who typically reports to the Chief Financial Officer (CFO)? A) Sales managers. B) Marketing managers. C) Treasury managers. D) Operations managers. Show Answer Correct Answer: C) Treasury managers. 14. Cash & Cash Equivalent-24, 890Held for Trading-10, 000Trade and Other Receivables-16, 000Inventory-8, 960If total liabilities amounted to 598, 030 and total assets amounted to 1, 014, 082. How much is the Shareholder's Equity? A) 356, 202. B) 400, 052. C) 416, 052. D) 390052. Show Answer Correct Answer: C) 416, 052. 15. Marginal cost of capital refers to: A) Overall cost of capital. B) Cost of new capital raised. C) Average cost. D) Total cost of firm. Show Answer Correct Answer: B) Cost of new capital raised. 16. A ..... is a type of credit score created by the Fair Isaac Corporation. Lenders use borrowers' these scores along with other details on borrowers' credit reports to judge how much the borrower can be trusted to pay back money owed based on their payment history A) Debt. B) Loan. C) FICO score. D) Net Income. Show Answer Correct Answer: C) FICO score. 17. Out of the 122 teams in the 4 major leagues (NFL, NBA, NHL, MLB), how many do not pay property taxes on the facility they occupy? A) 110. B) 0. C) 122. D) 10. Show Answer Correct Answer: A) 110. 18. Why is cash flow analysis important in financial management? A) Cash flow analysis is crucial for understanding a company's ability to meet its financial obligations, invest in growth opportunities, and sustain operations. B) Cash flow analysis is primarily used for marketing purposes. C) Cash flow analysis is only important for small businesses. D) Cash flow analysis has no impact on financial decision-making. Show Answer Correct Answer: A) Cash flow analysis is crucial for understanding a company's ability to meet its financial obligations, invest in growth opportunities, and sustain operations. 19. CW Co is appraising an opportunity to invest in some new machinery that has the following cash flows.Initial investment $ 40, 000Net cash inflows for 5 years in advance $ 12, 000 per annumDecommissioning costs after 5 years $ 15, 000What is the internal rate of return of the project, calculated using discount factors for 10% and 15% (to the nearest whole %)? A) 10%. B) 15%. C) 11.5%. D) 12%. Show Answer Correct Answer: D) 12%. 20. What is the primary purpose of a capital budget? A) Managing day-to-day expenses. B) Planning long-term investments. C) Controlling operational costs. D) Estimating monthly revenue. Show Answer Correct Answer: B) Planning long-term investments. 21. Based on the function of working assets in active capital companies is devided in to ..... A) Working capital and fixed capital. B) Current assets and fixed assets. C) Working capital and current assets. D) Fixed capital and fixed assets. Show Answer Correct Answer: A) Working capital and fixed capital. 22. What is the definition of Financial Management? A) Managing personal savings. B) Managing a company's financial resources and decisions. C) Managing stock market investments. D) Managing real estate assets. E) Public financial management. Show Answer Correct Answer: B) Managing a company's financial resources and decisions. 23. The followings are the five financial management process.I. Evaluating financial statusII. Carrying out financial planIII. Reviewing and revising progressIV. Setting goals V. Create financial planWhich of the followings is the correct order of financial management process? A) I, IV, V, III, II. B) IV, I, V, III, II. C) IV, I, V, II, III. D) I. IV, V, II, III. Show Answer Correct Answer: C) IV, I, V, II, III. 24. Internal Rate of Return (IRR) to equity capital providers is equal: A) The hurdle rate of return to equity capital providers. B) The cost of equity. C) The actual return on equity capital. D) The total discounted free cash flows to equity capital providers. Show Answer Correct Answer: C) The actual return on equity capital. 25. Kumar company has sales of Rs. 25, 00, 000. Variable cost of Rs. 12, 50, 000 and fixed cost of Rs. 50, 000 and debt of Rs. 12, 50, 000 at 8% rate of interest. Calculate combined leverage. A) 1.31. B) 1.13. C) 1.04. D) 1.40. Show Answer Correct Answer: B) 1.13. ← 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