MCQs for Class 12 Business Studies Chapter 9 Financial Management with Answer

MCQs for Class 12 Business Studies Chapter 9 : Class 12 BSt MCQs for Business Studies Chapter 9 “Financial Management” with Answers PDF Free Download is very important for students. CBSE Class 12 Business Studies Multiple Choice Questions with Answers to improve your score in Board Exams. Class 12 BSt All chapter MCQs

MCQs for Class 12 Business Studies Chapter 9 : Class 12 BSt MCQs for Business Studies Chapter 9 “Financial Management” with Answers PDF Free Download is very important for students. CBSE Class 12 Business Studies Multiple Choice Questions with Answers to improve your score in Board Exams. Class 12 BSt All chapter MCQs

MCQs for Class 12 Business Studies Chapter 9 Financial Management with Answe

MCQs for Class 12 Business Studies Chapter 9 Financial Management with Answer PDF | Class 12 BSt All chapter MCQs

Q.1 Business finance is needed to

(a) Establish a business
(b) Run a business
(c) Expand a business
(d) All of the above

(d) All of the above


Q.2 Which of the following is not a tangible asset?

(a) Machinery
(b) Trademarks
(c) Factories
(d) Offices

(b) Trademarks


Q.3 Financial Management aims at

(a) Reducing the cost of funds procured
(b) Keeping the risk under control
(c) Achieving effective deployment of such funds
(d) All of the above

(d) All of the above


Q.4 Primary aim of financial management is to

(a) Maximise shareholder’s wealth
(b) Wealth maximisation concept
(c) Maximisation of the market value of equity shares
(d) All of the above

(d) All of the above


Q.5 This decision relates to how the firm’s funds are invested in different assets,

(a) Investment decision
(b) Financing decision
(c) Dividend decision
(d) None of the above

(a) Investment decision


Q.6 Purchasing a new machine to replace an existing one is an example of

(a) Financing decision
(b) Dividend decision
(c) Working capital decision
(d) Capital budgeting decision

(d) Capital budgeting decision


Q.7 The size of assets, the profitability and competitiveness are all affected by

(a) Working capital decision
(b) Capital budgeting decision
(c) Financing decision
(d) Dividend decision

(b) Capital budgeting decision


Q.8 These decisions affect the liquidity as well as profitability of a business.

(a) Capital budgeting decision
(b) Financing decision
(c) Working capital decision
(d) Dividend decision

(c) Working capital decision


Q.9 Dev has two projects A and B in hand. The same amount of risk is involved in both the projects. If the rate of return of project A and B is 20% and 15% respectively, then under normal circumstance, which of the two projects is likely to be selected?

(a) Project A
(b) Project B
(c) Both project A and project B
(d) None of the above

(a) Project A


Q.10 This decision is about the quantum of finance to be raised from various long-term sources.

(a) Investment decision
(b) Financing decision
(c) Dividend decision
(d) Capital budgeting decision

(b) Financing decision


Q.11 Which one of the following is related to planning, organising, directing and controlling of financial activities?

(a) Financial decision
(b) Capital structure
(c) Investment decision
(d) Financial management

(d) Financial management


Q.12 Wealth maximisation depends on

(a) market price per share.
(b) market price of finished good.
(c) market price of inventory.
(d) market price of fixed assets.

(a) market price per share.


Q.13 Investment decision involves

(a) investment in fixed assets.
(b) investment in current assets.
(c) investment in fixed and current assets.
(d) investment in Government securities.

(c) investment in fixed and current assets.


Q.14 If dividend portion of total earnings is high, portion of retained earnings will be

(a) high.
(b) low.
(c) moderate.
(d) equal.

(b) low.


Q.15 Financial procedures are determined by

(a) financial planning.
(b) financial leverage.
(c) financial decisions.
(d) capital structure.

(a) financial planning.


Q.16 Capital structure shows

(a) Debtor-creditor ratio.
(b) Fixed assets-current assets ratio.
(c) Debt-equity ratio.
(d) Interest coverage ratio.

(c) Debt-equity ratio.


Q.17 Fixed capital requirements are determined by

(a) nature of business.
(b) nature of business environment.
(c) nature of Government control.
(d) nature of marketing efforts.

(a) nature of business.


Q.18 Working capital requirements are low when an organisation has

(a) high technology.
(b) high debtors.
(c) high inventory.
(d) high creditors.

(d) high creditors.


Q.19 _ is concerned with optimum procurement as well as usage of finance.

(a) Financial Analysis
(b) Financial Planning
(c) Financial Management
(d) Budgeting

(c) Financial Management


Q.20 _ is the time span between acquisition of goods and realisation of sale proceeds.

(a) Working capital
(b) Payback Period
(c) Operating Cycle
(d) Account Receivables Period

(c) Operating Cycle


Q.21 _ Gross working capital represents the total investment in assets.

(a) Current
(b) Fixed
(c) Tangible
(d) Intangible

(a) Current

MCQs for Class 12 Business Studies Chapter Wise with Answer PDF | Class 12 BSt All chapter MCQs

MCQs for Class 12 Business Studies : NCERT CBSE RBSE and Other State Board Business Studies MCQ Questions for Class 12 with Answers is one of the best ways to prepare for the CBSE Class 12 board exam. Class 12 BSt All chapter MCQs

Chapter 1 Nature and Significance of Management MCQ Questions
Chapter 2 Principles of Management MCQ Questions
Chapter 3 Business Environment MCQ Questions
Chapter 4 Planning MCQ Questions
Chapter 5 Organising MCQ Questions
Chapter 6 Staffing MCQ Questions
Chapter 7 Directing MCQ Questions
Chapter 8 Controlling MCQ Questions
Chapter 9 Financial Management MCQ Questions
Chapter 10 Financial Market MCQ Questions
Chapter 11 Marketing MCQ Questions MCQ Questions
Chapter 12 Consumer Protection MCQ Questions