Class 12 Business Studies MCQ Chapter 9 Financial Management, Financial Markets Question Answer English Medium to each chapter is provided in the list so that you can easily browse through different chapters Class 12 Business Studies MCQ Chapter 9 Financial Management, Financial Markets and select need one. AHSEC Class 12 Business Studies Objective Type Solutions As Per AHSEC New Book Syllabus Download PDF. AHSEC Business Studies MCQ Class 12.
Class 12 Business Studies MCQ Chapter 9 Financial Management, Financial Markets
Also, you can read the NCERT book online in these sections Solutions by Expert Teachers as per Central Board of Secondary Education (CBSE) Book guidelines. AHSEC Class 12 Business Study Multiple Choice Solutions are part of All Subject Solutions. Here we have given AHSEC Class 12 Business Studies MCQ in English for All Chapters, You can practice these here.
Financial Management, Financial Markets
Chapter: 9
| PART – B: Business Finance and Marketing |
Choose The Correct Option:
1. The main aim of financial management is:
(i) Profit maximisation.
(ii) Wealth maximisation.
(iii) Revenue maximisation.
(iv) Cost minimisation.
Ans: (ii) Wealth maximisation.
2. Capital budgeting decisions are also called:
(i) Financing decisions.
(ii) Investment decisions.
(iii) Dividend decisions.
(iv) Planning decisions.
Ans: (ii) Investment decisions.
3. Which of the following is a current asset?
(i) Land.
(ii) Debtors.
(iii) Building.
(iv) Machinery.
Ans: (ii) Debtors.
4. Which is cheaper for a company?
(i) Equity.
(ii) Debt.
(iii) Preference share.
(iv) Retained earnings.
Ans: (ii) Debt.
5. Dividend is paid out of:
(i) Gross profit.
(ii) Earnings after tax.
(iii) Share premium.
(iv) Capital reserve.
Ans: (ii) Earnings after tax.
6. Excess of current assets over current liabilities is known as:
(i) Fixed capital.
(ii) Net worth.
(iii) Net working capital.
(iv) Capital reserve.
Ans: (iii) Net working capital.
7. The rate of return on investment (RoI) is calculated as:
(i) EBIT ÷ Total investment × 100.
(ii) PAT ÷ Sales × 100.
(iii) EPS ÷ Equity × 100.
(iv) Dividend ÷ Equity × 100.
Ans: (i) EBIT ÷ Total investment × 100.
8. Which of the following affects dividend decision?
(i) Growth opportunities.
(ii) Tax policy.
(iii) Shareholder preference.
(iv) All of these.
Ans: (iv) All of these.
9. A capital structure is optimum when:
(i) Cost of capital is minimum.
(ii) EPS is maximum.
(iii) Shareholders’ wealth is maximised.
(iv) All of these.
Ans: (iv) All of these.
10. Floatation cost refers to:
(i) Cost of issuing shares/debentures.
(ii) Cost of buying machinery.
(iii) Cost of running business.
(iv) Cost of bank loan.
Ans: (i) Cost of issuing shares/debentures.
11. Which is an example of fixed asset?
(i) Inventory.
(ii) Furniture.
(iii) Debtors.
(iv) Bills receivable.
Ans: (ii) Furniture.
12. Financing decision involves:
(i) How much to invest.
(ii) How much to distribute.
(iii) How much to borrow and from where.
(iv) How much to retain.
Ans: (iii) How much to borrow and from where.
13. Financial planning is essentially:
(i) A financial blueprint.
(ii) A marketing strategy.
(iii) A production plan.
(iv) An HR plan.
Ans: (i) A financial blueprint.
14. EBIT means:
(i) Earnings before Interest and Taxes.
(ii) Earnings before Income Tax.
(iii) Earnings before Internal Turnover.
(iv) Earnings before Investments and Taxes.
Ans: (i) Earnings before Interest and Taxes.
15. In favourable financial leverage, ROI is:
(i) Equal to cost of debt.
(ii) Higher than cost of debt.
(iii) Lower than cost of debt.
(iv) Zero.
Ans: (ii) Higher than cost of debt.
Hi! my Name is Parimal Roy. I have completed my Bachelor’s degree in Philosophy (B.A.) from Silapathar General College. Currently, I am working as an HR Manager at Dev Library. It is a website that provides study materials for students from Class 3 to 12, including SCERT and NCERT notes. It also offers resources for BA, B.Com, B.Sc, and Computer Science, along with postgraduate notes. Besides study materials, the website has novels, eBooks, health and finance articles, biographies, quotes, and more.
