This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 9 Financial Management – Quiz 91 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 9 Financial Management Quiz 91 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following is an implication of Corporate Restructuring? A) Reduction in Number of players. B) Increase in competition. C) Creates social content. D) Economic health of Nation degrades. Show Answer Correct Answer: A) Reduction in Number of players. 2. What is the difference between current and non current assets? A) There is no difference. B) Current assets are the same as current liabilities and non current are not. C) Current assets tend to be easily converted to cash whereas non current are not. D) A company will gain more profit if they use non current only. Show Answer Correct Answer: C) Current assets tend to be easily converted to cash whereas non current are not. 3. Gordon's model of dividend relevance is same as A) No growth model of equity valuation. B) Constant growth model of equity valuation. C) Price earning ratio. D) Inverse of price earning ratio. Show Answer Correct Answer: B) Constant growth model of equity valuation. 4. Difference in what is owned, called assets, and what is owed, called liabilities is considered: A) Net Income. B) Net Worth. C) Balance. D) Interest. Show Answer Correct Answer: B) Net Worth. 5. With an increase in the investment in fixed assets, there is a commensurate ..... in the working capital requirement. A) Decrease. B) Increase. C) May increase or decrease. D) No change. Show Answer Correct Answer: B) Increase. 6. Higher dividend per share is associated with A) High earnings, high cash flows, unusable earnings and higher growth opportunities. B) High earnings, high cash flows, stable earnings and high growth opportunities. C) High earnings, high cash flows, stable earnings and lower growth opportunities. D) High earnings, low cash flows, stable earnings and lower growth opportunities. Show Answer Correct Answer: C) High earnings, high cash flows, stable earnings and lower growth opportunities. 7. Perusahaan akan memiliki cash pada saat ..... A) Customers membayar lebih cepat. B) Account Receivable meningkat. C) Profit meningkat. D) Inventory menurun. Show Answer Correct Answer: A) Customers membayar lebih cepat. 8. In order to find out cost of equity capital under CAPM, which of the following is not required: A) Beta Factor. B) Market Rate of Return. C) Market Price of Equity Share. D) Risk-free Rate of Interest. Show Answer Correct Answer: C) Market Price of Equity Share. 9. Having diverse loan/credit types will A) Improve your credit score. B) Hurt your credit score. C) All the above. D) None of the above. Show Answer Correct Answer: A) Improve your credit score. 10. Saving money in a bank account is 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. 11. Buy stocks issued by a firm that represents certain degree of power to make decisions for the firm A) Corporation. B) Owner. C) Shareholders. D) Directors. Show Answer Correct Answer: C) Shareholders. 12. Which is a source of earned income? A) Interest on your money market account. B) Volunteering at your school. C) Money earned while working at the mall. D) Collecting gift cards from birthdays. Show Answer Correct Answer: C) Money earned while working at the mall. 13. The primary objective of financial management is A) Minimizing risk. B) Maximizing profit. C) Maximizing wealth. D) Minimizing return. Show Answer Correct Answer: C) Maximizing wealth. 14. Companies (A) and (B) have the same tax rate, sales, total assets, and basic earning power. Both companies have positive net incomes. Company (A) has a higher debt ratio and, therefore, a higher interest expense. Which of the following statements is CORRECT? A) Company (A) has a lower equity multiplier. B) Company (A) has more net income. C) Company (A) pays more in taxes. D) Company (A) has a lower times interest earned (TIE) ratio. Show Answer Correct Answer: D) Company (A) has a lower times interest earned (TIE) ratio. 15. How would you classify financial market based on 'Nature of claim'? A) Debt market and Equity market. B) Primary market and Secondary market. C) Cash market and Future market. D) Money market and Capital market. Show Answer Correct Answer: A) Debt market and Equity market. 16. What measures a firm's ability to meet short-term obligations? A) Liquidity ratios. B) Financial capital. C) Capital structure. D) Retained earnings. Show Answer Correct Answer: A) Liquidity ratios. 17. Budget Classification Code Has- A) 2 Levels. B) 3 Levels. C) 4 Levels. D) 5 Levels. Show Answer Correct Answer: C) 4 Levels. 18. Which of the following is a hybrid form of security? A) Equity shares. B) Preference shares. C) Debentures. D) None of these. Show Answer Correct Answer: B) Preference shares. 19. The impact of Foreign exchange rate on a firm is called as A) Business risk. B) Translation exposure. C) Transaction exposure. D) Operating Exposure. Show Answer Correct Answer: D) Operating Exposure. 20. Ratios used in measuring the ability of the firm to meet its currently maturing obligations. A) Activity Ratio. B) Solvency Ratio. C) Profitability Ratio. D) Liquidity Ratio. Show Answer Correct Answer: D) Liquidity Ratio. 21. What are the five C's of credit? A) Capacity, Coloring, Clearing, Creativeness, Coneheads. B) Capacity, Collection, Collateral, Common Sense, Capital. C) Capacity, Clearance, Collateral, Character, Capital. D) Capacity, Conditions, Collateral, Character, Capital. Show Answer Correct Answer: D) Capacity, Conditions, Collateral, Character, Capital. 22. Online Banking can NOT be used to: A) Transfer money between accounts. B) Order Bank statements. C) Set up direct bill payments or debits. D) Withdraw Cash. Show Answer Correct Answer: D) Withdraw Cash. 23. You should log off when you're finished accessing your bank online. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 24. Working capital may be- A) Positive. B) Negative. C) Zero. D) Any one of them. Show Answer Correct Answer: D) Any one of them. 25. What is the life blood of a business? A) Accounts. B) Decisions. C) Reports. D) Finance. Show Answer Correct Answer: D) Finance. ← 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