This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 9 Financial Management – Quiz 94 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 9 Financial Management Quiz 94 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Mother of all bank A) Banko Sentral (Manila). B) Central Bank. C) BDO. D) BPI. Show Answer Correct Answer: A) Banko Sentral (Manila). 2. ..... is the long term strategy for financing proposed capital expenditure A) Capital budgeting. B) Budget. C) Cash budget. D) None of the above. Show Answer Correct Answer: A) Capital budgeting. 3. The Main Objective of Financial Management A) Profit Maximisation. B) Wealth Maximisation. C) Both. D) None of the above. Show Answer Correct Answer: C) Both. 4. Fixed capital means that capital which is used in purchasing ..... assets. A) Current assets. B) Fixed assets. C) Material. D) All the above. Show Answer Correct Answer: B) Fixed assets. 5. Contribution/ EBIT is the formula of ..... A) Operating Leverage. B) Financial Leverage. C) Combined Leverage. D) None of the above. Show Answer Correct Answer: A) Operating Leverage. 6. Xin Yi earns RM2, 500 monthly. He plans to save 20% of his income. How much will she save in a year? A) RM4, 500. B) RM8, 000. C) RM3, 000. D) RM6, 000. Show Answer Correct Answer: D) RM6, 000. 7. The income statement is sometimes called a profit and loss (P & L) statement. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 8. A share that you cannot redeem during the lifetime of the business? A) Debenture Share. B) Preference Share. C) Equity Share. D) None of the above. Show Answer Correct Answer: C) Equity Share. 9. INVESTMENT DECISION RELATED TO INVESTING OF FUNDS ON A LONG TERM BASIS IS CALLED AS: A) DIVIDEND DECISION. B) CAPITAL BUDGETING DECISION. C) FINANCING DECISION. D) NONE OF THE ABOVE. Show Answer Correct Answer: B) CAPITAL BUDGETING DECISION. 10. ..... refers to management of flow of funds in a firm. A) Cash management. B) Bank management. C) Financial management. D) Money management. Show Answer Correct Answer: C) Financial management. 11. Which of the following is typically considered an agency cost? A) Consultant fees. B) Cost of goods sold. C) Audit. D) Taxes. Show Answer Correct Answer: C) Audit. 12. What is the importance of credit score in financial matters? A) It has no impact on financial decisions. B) It determines the interest rate on loans. C) It affects the stock market. D) It is used for tax calculations. Show Answer Correct Answer: B) It determines the interest rate on loans. 13. Financial ratios for the statement of financial position and the income statement are done. A) TRUE. B) FALSE. C) All the above. D) None of the above. Show Answer Correct Answer: A) TRUE. 14. One benefit of using e-file to prepare and file federal and state income taxes is ..... A) Takes longer to complete. B) Increased accuracy in calculations. C) Increased math errors. D) None of the above. Show Answer Correct Answer: B) Increased accuracy in calculations. 15. Book Building is a process used for efficient price discovery in A) IPO (Initial Public Offer). B) Secondary market. C) Right Issue. D) Private placement. Show Answer Correct Answer: A) IPO (Initial Public Offer). 16. Which is not a qualitative factor affecting a firm's investment appraisal decisions? A) Aims and objectives. B) Risk. C) The selected discount factor. D) Impact on the environment. Show Answer Correct Answer: C) The selected discount factor. 17. Pay for working more than 40 hours in one week is called? A) Net pay. B) Gross Pay. C) Pay period. D) Overtime pay. Show Answer Correct Answer: D) Overtime pay. 18. The IRR is the discount rate that produces a zero NPV or the specific discount rate at which the present value of the cost equals ..... A) The future value of the present cash outflows. B) The present value of the future benefits or cash inflows. C) The present value of the cash outflow. D) The investment. Show Answer Correct Answer: B) The present value of the future benefits or cash inflows. 19. Which of the following does NOT form part of the objectives of a corporate governance best practice framework? A) Separation of chairperson and CEO roles. B) Establishment of audit, nomination and remuneration committees. C) Minimisation of risk. D) Employment of non-executive directors. Show Answer Correct Answer: C) Minimisation of risk. 20. An example of a financial institution is: A) A department store. B) A bank. C) A credit union. D) A bank and a credit union. Show Answer Correct Answer: D) A bank and a credit union. 21. Combined leverage can be used to measure the relationship between: A) EBIT and EPS. B) PAT and EPS. C) Sales and EPS. D) Sales and EBIT. Show Answer Correct Answer: C) Sales and EPS. 22. This measure the capacity to earn sufficient return on sales, total assets and owner's investment. A) Liquidity. B) Asset Utilization. C) Debt Utilization. D) Profitability. Show Answer Correct Answer: D) Profitability. 23. What does equity financing require the entrepreneur to give up? A) Cash. B) Control and ownership. C) Pro forma statements. D) Internal funds. Show Answer Correct Answer: B) Control and ownership. 24. Corporation finance is a part of public finance A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 25. Firm having higher degree of operating efficiency require higher amount of working capital A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. ← 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