This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 9 Financial Management – Quiz 85 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 9 Financial Management Quiz 85 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. How much is allocated for rent in the sample budget? A) $ 500. B) $ 600. C) $ 800. D) $ 700. Show Answer Correct Answer: D) $ 700. 2. When do we set aside the money for the 10% savings? A) After engaging the expenses. B) Before engaging the expenses. C) All the above. D) None of the above. Show Answer Correct Answer: B) Before engaging the expenses. 3. What do you mean by Financial Management? A) Arrangement of funds. B) Disbursement/uses of funds. C) Both of the above. D) None of these. Show Answer Correct Answer: C) Both of the above. 4. Evaluating the company's financial performance is the role of A) Auditor. B) Finance clerk. C) CFO. D) Production manager. Show Answer Correct Answer: C) CFO. 5. Income from investment A) Property. B) Risk. C) Investment. D) Return. Show Answer Correct Answer: D) Return. 6. Installment is equal to ..... A) Principle + interest. B) Principle-interest. C) Cash price + interest. D) Cash price-down payment. Show Answer Correct Answer: A) Principle + interest. 7. Why is income important in personal financial management? A) It is the ending point and determines expenses a person must pay. B) It is the starting point and determines what is left over after savings. C) It is the ending point and determines how much earning potential a person has. D) It is the starting point and determines how much a person has available to spend. Show Answer Correct Answer: D) It is the starting point and determines how much a person has available to spend. 8. In relation to the financial management of a company, which of the following provides the best definition of a firm's primary financial objective? A) To achieve long-term growth in earnings. B) To maximise the level of annual dividends. C) To maximise the wealth of its ordinary shareholder. D) To maximise the level of annual profit. Show Answer Correct Answer: C) To maximise the wealth of its ordinary shareholder. 9. Which of the following are all WANTS A) Food, Clothing, Housing. B) Food, Video Games, Housing. C) Iphone 11, Video Games, Concert tickets. D) None of the above. Show Answer Correct Answer: C) Iphone 11, Video Games, Concert tickets. 10. Which of the following is a source of finance? A) Government grants. B) Loans. C) Savings accounts. D) Equity investments. Show Answer Correct Answer: B) Loans. 11. You invest Rs 800 in an account that pays 6% interest, compounded annually. How much money do you have after five years? A) 898.09. B) 1070.58. C) 1710.58. D) 975.68. Show Answer Correct Answer: B) 1070.58. 12. The purpose of depreciation is to: A) Save cash for asset replacement. B) Match asset cost to the periods benefiting from its use. C) Reduce liabilities. D) Increase equity. Show Answer Correct Answer: B) Match asset cost to the periods benefiting from its use. 13. Name one popular budgeting technique. A) Envelope budgeting. B) Cash flow forecasting. C) Zero-based budgeting. D) 50/30/20 rule. Show Answer Correct Answer: D) 50/30/20 rule. 14. This refers to the relationship between equity capital, preference share capital and debt capital. A) Capital structure. B) Capital. C) Sources of financing. D) None of the above. Show Answer Correct Answer: A) Capital structure. 15. What is the amount paid to worker after deductions have been taken out? A) Gross Pay. B) Net Pay. C) Interest. D) Premium. Show Answer Correct Answer: B) Net Pay. 16. Which of the following is true for NI approach of capital structure A) Higher debts increases value of the firm. B) Lower debt increases WACC. C) Higher equity increases value of the firm. D) All of the above. Show Answer Correct Answer: A) Higher debts increases value of the firm. 17. The key objective of financial management is ..... A) Profit Maximization. B) Wealth Management. C) Asset Maximization. D) Sales Maxmization. Show Answer Correct Answer: B) Wealth Management. 18. Internal reconstruction is done with a view to ..... A) Show true and fair view of financials. B) Sale the company. C) Purchase new company. D) Declare dividend to shareholders. Show Answer Correct Answer: A) Show true and fair view of financials. 19. Which factor is NOT typically considered in setting dividend policy? A) Legal restrictions. B) Company's growth opportunities. C) Competitors' stock prices. D) Available cash flow. Show Answer Correct Answer: C) Competitors' stock prices. 20. What is the main purpose of having an emergency fund? A) To pay off all existing debts without saving. B) The main purpose of having an emergency fund is to provide financial security during unexpected situations. C) To invest in high-risk stocks immediately. D) To save for a vacation or luxury items. Show Answer Correct Answer: B) The main purpose of having an emergency fund is to provide financial security during unexpected situations. 21. How does inflation impact investment analysis? A) Inflation impacts investment analysis by affecting real returns, interest rates, and sector performance. B) Inflation improves the accuracy of investment forecasts. C) Inflation only affects stock prices, not bonds. D) Inflation has no effect on investment analysis. Show Answer Correct Answer: A) Inflation impacts investment analysis by affecting real returns, interest rates, and sector performance. 22. If balance of an asset increases, cash flow operations will decrease. The statement is? A) TRUE. B) FALSE. C) Neither TRUE nor FALSE. D) I don't know. Show Answer Correct Answer: A) TRUE. 23. Which type of bank is NON PROFIT and run by its members? A) Commercial banks. B) Credit Unions. C) All the above. D) None of the above. Show Answer Correct Answer: B) Credit Unions. 24. On a INCOME STATEMENT, if the "Gross Profit for the year is $ 58, 200; and the "Total Operating Expenses is $ 13, 780, and taxes is "$ 3, 356.25" what is the "NET INCOME after taxes" amount: A) $ 68, 623.75. B) $ 41, 063.75. C) $ 4, 106.375. D) $ 47, 776.25. Show Answer Correct Answer: B) $ 41, 063.75. 25. The stocks that are owned by investors who are not active in management are called ..... ? A) Common stock. B) Classified stock. C) Closely held stock. D) Publicly held stock. Show Answer Correct Answer: D) Publicly held stock. ← 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