This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 9 Financial Management – Quiz 89 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 9 Financial Management Quiz 89 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is the impact of the COVID-19 pandemic on financial markets? A) Increased rate of return on investments. B) Stable financial markets. C) 2020 stock market crash. D) Positive economic growth. Show Answer Correct Answer: C) 2020 stock market crash. 2. Cash flows are discounted for various reasons, but NOT because of A) Time. B) Inflation. C) Interest rate. D) Risk and uncertainty. Show Answer Correct Answer: D) Risk and uncertainty. 3. Double entry accounting means: A) A system where every transaction affects at least two accounts. B) An accounting method that does not require balancing accounts. C) A system that tracks only cash transactions. D) A method where transactions are recorded only once. Show Answer Correct Answer: A) A system where every transaction affects at least two accounts. 4. Money that a person owes to another person or bank/credit card company is ..... A) Credit. B) Investment. C) Debt. D) Checking. Show Answer Correct Answer: C) Debt. 5. Identify the function of stock exchange A) (a) Trading and settlement procedure. B) (b) Dematerialisation. C) C) Pricing of securities. D) (d) Depository participants. Show Answer Correct Answer: C) C) Pricing of securities. 6. A schedule of how much producers are willing and able to produce and sell at a price A) Profit. B) Services. C) Supply. D) Demand. Show Answer Correct Answer: C) Supply. 7. How does the time value of money affect investment decisions? A) The time value of money influences investment decisions by prioritizing present value and future cash flow potential. B) The time value of money is irrelevant for short-term investments. C) Investors only consider historical returns, ignoring future cash flows. D) The time value of money has no impact on investment decisions. Show Answer Correct Answer: A) The time value of money influences investment decisions by prioritizing present value and future cash flow potential. 8. ..... is the study of how money is used by individuals, societies and nations to meet people's needs. A) Debt. B) Income. C) Economics. D) Debit. Show Answer Correct Answer: C) Economics. 9. The market value of the firm is the result of A) Dividend decisions. B) Working capital decisions. C) Capital budgeting decisions. D) Trade-off between risk and return. Show Answer Correct Answer: D) Trade-off between risk and return. 10. Which of the following is NOT relevant to the use of the NPV method of investment appraisal? A) It relies on discounted cash flows. B) It's expressed as a percentage for easier comparison. C) Its value will fall if interest rates rise. D) A financially viable investment has a positive value. Show Answer Correct Answer: B) It's expressed as a percentage for easier comparison. 11. Increased EPS is the benefit of ..... A) Business valuation. B) Corporate account. C) Corporate restructuring. D) None of the above. Show Answer Correct Answer: C) Corporate restructuring. 12. Ratio untuk menilai kemampuan perusahaan dalam memenuhi seluruh kewajiban finansial dalam jangka pendek. Disebut apakah ratio tsb? A) Activity ratio. B) Leverage ratio. C) Financial ratio. D) Liquidity ratio. Show Answer Correct Answer: D) Liquidity ratio. 13. What is research A) Search. B) Again and again. C) Finding hidden facts. D) All of the above. Show Answer Correct Answer: D) All of the above. 14. What is the role of a financial advisor? A) To encourage reckless spending. B) To provide guidance on financial decisions. C) To maximize debt accumulation. D) To discourage saving. Show Answer Correct Answer: B) To provide guidance on financial decisions. 15. Is long-term vision and financial planning an important part of a financial manager's role? Why? A) No, because financial managers only focus on short-term financial goals. B) No, because financial planning is the responsibility of the accounting department. C) Yes, because it helps ensure the financial stability and growth of the organization. D) Yes, because finance managers are primarily responsible for forecasting sales and generating revenue. Show Answer Correct Answer: C) Yes, because it helps ensure the financial stability and growth of the organization. 16. The Theory underlying the cost of capital is primarily concerned with the cost of ..... A) Long-term funds and old funds. B) Short-term funds and new funds. C) Long-term funds and new funds. D) Short-term funds and old funds. Show Answer Correct Answer: C) Long-term funds and new funds. 17. Fixed capital finance depends on the short term sources of finance. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 18. Financial blueprint of operations A) Financial planning. B) Financial Management. C) All the above. D) None of the above. Show Answer Correct Answer: A) Financial planning. 19. Which branch of management does take care of the efficient planning and controlling of the financial activities of an organisation? A) Production management. B) Financial management. C) Marketing management. D) Personnel management. Show Answer Correct Answer: B) Financial management. 20. The expected return on a riskless asset is greater than zero due to A) An expected return for delaying consumption. B) An expected return for opportunity costs. C) An expected return for taxes. D) Irrational investors who believe risk is always present. Show Answer Correct Answer: A) An expected return for delaying consumption. 21. The following shows part of Mr Jason's financial management process.To save for emergency fundTo buy a laptopTo buy a terrace house in 10 years by paying RM60 000 as a down payment.What step in the financial management process did Mr Jason take? A) Evaluating financial status. B) Carrying out financial plan. C) Setting financial goals. D) Creating a financial plan. Show Answer Correct Answer: C) Setting financial goals. 22. Current liabilities are those that are except: A) Expected to be settled within the entity's normal operating cycle. B) Held for purpose of trading. C) Due to be settled beyond 12 months. D) For which the entity does not have the right at the end of the reporting period to defer settlement beyond 12 months. Show Answer Correct Answer: C) Due to be settled beyond 12 months. 23. What are the important financial aspects that an entrepreneur has to look after? A) Employee training programs. B) Marketing strategies. C) Product development timelines. D) Budgeting, cash flow management, financial forecasting, and investment decisions. Show Answer Correct Answer: D) Budgeting, cash flow management, financial forecasting, and investment decisions. 24. Chow plans to take out loan to buy a car. Which factor should he consider most to avoid future financial problems? A) Interest rate of the loan. B) Loan term length. C) Type of car being purchased. D) Monthly payment amount. Show Answer Correct Answer: A) Interest rate of the loan. 25. If Ke=r then what walter's model which of the following is irrelevant A) Earning per share. B) Dividend per share. C) DP ratio. D) None of the above. Show Answer Correct Answer: C) DP ratio. ← 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