This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 9 Financial Management – Quiz 88 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 9 Financial Management Quiz 88 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is the principle that higher returns are associated with greater risks? A) Budgeted income statement. B) Risk-return trade-off. C) Liquidity ratios. D) Financial leverage. Show Answer Correct Answer: B) Risk-return trade-off. 2. Which of the following is LEAST likely to solve the agency problem between shareholders and managers? A) Giving managers profit-related rewards. B) Using external auditors to gauge company performance. C) Writing restrictive covenants into loan note contracts. D) Monitoring managers' actions. Show Answer Correct Answer: C) Writing restrictive covenants into loan note contracts. 3. If the company's current ratio is 5. If the company paid $ 100 of accounts payable using its cash. The new current ratio will A) Be the same. B) Increase. C) Decrease. D) Can not be determined. Show Answer Correct Answer: B) Increase. 4. The long-run objective of financial management is to ..... A) Maximize earnings per share. B) Maximize the value of the firm's common stock. C) Maximize return on investment. D) Maximize market share. Show Answer Correct Answer: B) Maximize the value of the firm's common stock. 5. What is one of the roles of fm in tax planning? A) Develop marketing campaigns to increase sales. B) Analyze customer behavior and preferences. C) Maximize deductions and credits to minimize tax liability. D) Manage the organization's investment portfolio. Show Answer Correct Answer: C) Maximize deductions and credits to minimize tax liability. 6. Internal Rate of Return (IRR) is: A) The discount rate that makes NPV positive. B) The discount rate that makes NPV negative. C) The discount rate that makes NPV zero. D) The discount rate that makes total undiscounted free cash flows zero. Show Answer Correct Answer: C) The discount rate that makes NPV zero. 7. Which development most directly enabled currencies to adjust to market conditions after the Bretton Woods system ended? A) Fixed pegs were enforced by central banks. B) Capital controls were strengthened globally. C) Floating exchange rates were widely adopted. D) Gold convertibility was universally restored. Show Answer Correct Answer: C) Floating exchange rates were widely adopted. 8. Code that identifies your financial institution A) Routing number. B) Account number. C) Check number. D) Date. Show Answer Correct Answer: A) Routing number. 9. Which among the statement is not true for a debenture A) Long term loan finance. B) Interest on debenture is a tax deductible expense for the company. C) Fixed and regular source of income to the investor. D) None of these. Show Answer Correct Answer: D) None of these. 10. Which of the following financial goals does not meet the SMART concept? A) Save RM5 000 as registration fees of college after 2 years. B) Buy a new watch worth RM500 by next year. C) Save RM2 000 to buy video games by next year. D) Save RM5 000 to bring parents on vacation to Japan. Show Answer Correct Answer: D) Save RM5 000 to bring parents on vacation to Japan. 11. Saving money in a savings account is an example of a high-risk, high-return investment A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 12. ..... is NOT a main category of financial management. A) Capital budgeting. B) Capital structure. C) Accounts payable management. D) Working capital management. Show Answer Correct Answer: C) Accounts payable management. 13. Family income means: A) Income of all related persons living in the household. B) Commodities and services produced in the country. C) Right to consume goods and services. D) All the above. Show Answer Correct Answer: A) Income of all related persons living in the household. 14. What are the functions of financial markets? A) Promote liquidity of physical assets. B) Provide professional investment advice. C) Facilitate access to short and long term funds. D) Allocate funds to non-productive units. Show Answer Correct Answer: C) Facilitate access to short and long term funds. 15. Apa yang dimaksud dengan istilah "finansial" berdasarkan materi yang disajikan? A) Hanya mencakup investasi. B) Segala hal yang berkaitan dengan pengelolaan keuangan untuk mencapai tujuan keuangan. C) Hanya mencakup manajemen risiko. D) Visi untuk mencapai tujuan keuangan. Show Answer Correct Answer: B) Segala hal yang berkaitan dengan pengelolaan keuangan untuk mencapai tujuan keuangan. 16. Redeemable preference shares can be redeemed out of A) The sale proceeds of investment. B) The proceeds of a fresh issue of shares. C) Securities premium reserve. D) The proceeds of issue of debentures. Show Answer Correct Answer: B) The proceeds of a fresh issue of shares. 17. What is the purpose of diversifying your investments? A) To maximize potential losses. B) To reduce risk by spreading investments across different assets. C) To keep all your money in one place. D) To avoid paying taxes. Show Answer Correct Answer: B) To reduce risk by spreading investments across different assets. 18. What caused Byju's financial statements to change and increase their losses? A) Lack of senior financial manager. B) Brand value declines. C) Investor lawsuits. D) Difficulty in paying interest. Show Answer Correct Answer: A) Lack of senior financial manager. 19. Forecast by analysts retention growth model and historical growth rates are methods used for an A) Estimate future growth. B) Estimate option future rate. C) Estimate option present rate. D) Estimate growth ratio. Show Answer Correct Answer: A) Estimate future growth. 20. What professional organization has the largest profit margin? A) USTA. B) NFL. C) WNBA. D) NBA. Show Answer Correct Answer: A) USTA. 21. Managing government revenues and expenditures falls under A) Corporate finance. B) Personal finance. C) Public finance. D) Investment finance. Show Answer Correct Answer: C) Public finance. 22. How do you calculate the cost of capital? A) Cost of Capital = (E * Re) + (D * Rd). B) Cost of Capital = (E/V * Re) + (D/V * Rd * (1-Tc)). C) Cost of Capital = (D/V * Rd) + (E/V * Re). D) Cost of Capital = (Re + Rd) / 2. Show Answer Correct Answer: B) Cost of Capital = (E/V * Re) + (D/V * Rd * (1-Tc)). 23. A share which gives you no right to claim dividends from years with no profit A) Irredeemable preference Share. B) Cumulative preference share. C) Non-cumulative preference share. D) Redeemable Preference Share. Show Answer Correct Answer: C) Non-cumulative preference share. 24. The investment involve decision making on daily basis. This sentence refer to ..... A) Capital investment. B) Working capital investment. C) All the above. D) None of the above. Show Answer Correct Answer: B) Working capital investment. 25. The furniture store offers you no-money-down on a new set of living room furniture. Further, you may pay for the furniture in three equal annual end-of-the-year payments of $ 1, 000 each with the first payment to be made one year from today. If the discount rate is 6%, what is the present value of the furniture payments? A) $ 3, 183.60. B) $ 2, 673.01. C) $ 2, 833.39. D) $ 2, 678.01. Show Answer Correct Answer: B) $ 2, 673.01. ← 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