This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 9 Financial Management – Quiz 9 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 9 Financial Management Quiz 9 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The sum of short term and long term sources of finance is known as: A) Capital structure. B) Both of these. C) Financial structure. D) None of these. Show Answer Correct Answer: C) Financial structure. 2. What is a summary of your financial history called? A) Credit report. B) Credit score. C) Loan. D) Taxes. Show Answer Correct Answer: A) Credit report. 3. Correct cost of capital helps in the following decision making: A) Evaluation of Investment options. B) Financing Decision. C) Designing of optimum credit policy. D) All the three. Show Answer Correct Answer: D) All the three. 4. Current assets include A) Land. B) Building. C) Inventory. D) Furniture. Show Answer Correct Answer: C) Inventory. 5. What is the annual interest rate mentioned for the credit card example? A) 20%. B) 18%. C) 15%. D) 10%. Show Answer Correct Answer: B) 18%. 6. What is the importance of financial planning related to maintaining financial stability? A) By keeping a fair balance between outflow and inflow of cash. B) By keeping a high outflow of cash and a low inflow of cash. C) By increasing the outflow of cash and decreasing the inflow of cash. D) By decreasing the outflow of cash and increasing the inflow of cash. Show Answer Correct Answer: A) By keeping a fair balance between outflow and inflow of cash. 7. Shadowline Co has a money cost of capital of 10%. If inflation is 4%, what is Shadowline Co's real cost of capital? (to one decimal place)? A) 5.5%. B) 5.9%. C) 5.7%. D) 5.8%. Show Answer Correct Answer: D) 5.8%. 8. What is the primary purpose of a Budget? A) To estimate income and expenses over a specific time period. B) To determine creditworthiness. C) To calculate taxes. D) To list all assets. Show Answer Correct Answer: A) To estimate income and expenses over a specific time period. 9. If a family's monthly expenses are greater than its income, then it has: A) A debt. B) Savings. C) Interest. D) Income. Show Answer Correct Answer: A) A debt. 10. A company has calculated the NPV of a new project as follows:Present value($ '000)Sales revenue 4, 000Variable costs (2, 000)Fixed costs (500)Corporation tax at 20% (300)Initial outlay (1, 000)NPV 200What is the sensitivity of the project decision to a change in sales volume? A) 12.5%. B) 6.3%. C) 10.0%. D) 5.0%. Show Answer Correct Answer: A) 12.5%. 11. What is the definition of finance? A) The study of how to maximize allocate assets. B) The management of government revenue, expenditure, and debt. C) The management of an individual's finances. D) The creation and study of money and investments. Show Answer Correct Answer: A) The study of how to maximize allocate assets. 12. Financial structure refers to ..... A) Short-term resources. B) All the financial resources. C) Long-term resources. D) All of these. Show Answer Correct Answer: B) All the financial resources. 13. What is a credit score? A) A small plastic card that lets you make a purchase without cash. B) How much money you make compared to how much money you owe?. C) A number that helps a lender predict how likely an individual is to repay a loan. D) None of the above. Show Answer Correct Answer: C) A number that helps a lender predict how likely an individual is to repay a loan. 14. Stocks are bought and sold in ..... markets. A) Equity. B) Debt. C) Derivatives. D) Foreign exchange. Show Answer Correct Answer: A) Equity. 15. Debt causes a dilution of control A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 16. Also known as balance sheet, balance sheet or statement of equity, it is a financial statement that reflects at a given time the economic and financial information of a company, separated into three assets:assets, liabilities and net worth. A) Balance sheet. B) Statement of income. C) Cash flow. D) Cost effectiveness. Show Answer Correct Answer: A) Balance sheet. 17. Having ALOT of money means you are important A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 18. Wealth maximization as the goal of the firm implies enhancing the wealth of A) The Board of Directors. B) The firm's employees. C) The government. D) The firm's shareholders. Show Answer Correct Answer: D) The firm's shareholders. 19. Which feature illustrates the free flow of capital and trade? A) Complete ban on international money transfers. B) Foreign direct investment moving across borders. C) Subsidies replacing tariffs in all countries. D) Strict quotas limiting imports and exports. Show Answer Correct Answer: B) Foreign direct investment moving across borders. 20. Which of the following represents the key financial decision areas in corporate finance? A) Capital budgeting, financial analysis, and marketing strategies. B) Capital budgeting, financing decisions, and working capital management. C) Human resource management, capital budgeting, and financial planning. D) Financial analysis, risk management, and dividend policy. Show Answer Correct Answer: B) Capital budgeting, financing decisions, and working capital management. 21. Financial leverage refers to the portion of debt in the overall capital. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 22. Which of the following is an active income? A) Dividend. B) Interest. C) House rental. D) Commission. Show Answer Correct Answer: D) Commission. 23. Airports typically have a business model characterized by: A) Low fixed costs and high variable costs. B) High fixed costs and the need to achieve economies of scale. C) Short-term planning horizons due to flexible capacity. D) High profitability regardless of passenger traffic. Show Answer Correct Answer: B) High fixed costs and the need to achieve economies of scale. 24. ..... used to compare different firms at the same point in time. A) Industry comparative analysis. B) Cross-sectional analysis. C) Trend analysis. D) Combined analysis. Show Answer Correct Answer: B) Cross-sectional analysis. 25. Cash flow management: A) Ensures adequate liquidity to meet short-term obligations. B) Manages working capital. C) Invests surplus funds effectively. D) All of the above. Show Answer Correct Answer: A) Ensures adequate liquidity to meet short-term obligations. ← 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 10Class 12 Business Studies Chapter 9 Financial Management Quiz 11 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books