CBSE Questions for Class 12 Commerce Business Studies Financial Management Quiz 5 - MCQExams.com

Which of the following is said to be the lifeblood of an organization?
  • Debentures
  • Finance
  • Material
  • Goodwill
Finance represents ___________ requirements of an organization.
  • long-term
  • short-term
  • both (A) and (B)
  • neither (A) nor (B)
Statement I : The liability of members of co-operative society remains limited to the extent of capital contributed by them.
Statement II : The members of co-operative society are personally liable to pay the liability of co-operative society. 
Select the correct answer from the options given below:
  • Both 1 and 2 are true
  • 2 is true but 1 is false
  • 1 is true but 2 is false
  • Both 1 and 2 are false
 ______ means pre-estimating financial needs of an organization to ensure availability of adequate finance.
  • Financial planning
  • Material planning
  • Value chain planning
  • Capital structure decision
"Finance may be defined as that administration area or set of administrative functions in an organization may have the means of carrying out its objectives as satisfactorily, as possible." This definition is given by-
  • B.O. Wheeler
  • Howard and Upton
  • ICSI
  • ICAI
Financial Management is concerned with -
A.Investment decisions.
B. Labour turnover decisions.
C. Financing decisions.
D.Personnel policy decisions.
E.Dividend decisions.
Select the correct answer from the options given below.
  • D B & C
  • A C B & E
  • A and C only
  • E C & A
_____is nothing but management of limited financial resources the organization has, to its utmost advantage.
  • Material management
  • Cash management
  • Customer management
  • Financial management
____ can be done to compute and analyze financial statements.
  • Internal audit
  • Standard costing
  • Ratio analysis
  • Zero base budgeting
Business is concerned with the production and distribution of goods and services _______.
  • for charity
  • for the satisfaction of needs
  • for selling
  • for society
The basic assumption made for using "forced distribution method" is that employees are distinguishable as outstanding, above average, average, below average and poor; and their number conforms to a normal frequency distribution.__________ each in the highest and lowest categories, _________ each in the above average and below average categories, and _________ in the average category.   
  • 20%; 30%; 50%
  • 10%; 60%; 40%
  • 10%; 20%; 40%
  • 40%; 20%; 10%
The funds spent on fixed assets remain invested in the business for a __________.
  • Short period of time
  • Long period of time
  • For an year
  • None of the above
Which of the following is an aspect of financial management?
  • The quantum of current assets as well as its break-up into cash, inventories and receivables
  • The size as well as the composition of fixed assets of the business
  • The amount of long-term and short-term financing to be used
  • All of the above
Money required for carrying out business activties is called ___________.
  • financial management
  • business finance
  • finance
  • cost management
Financial management aims at _________ the cost of funds procured, keeping the risk under control and achieving effective deployment of such funds.
  • increasing
  • equaling
  • reducing
  • nullifying
Funds required for day-to-day operations are called _______.
  • fixed capital
  • current capital
  • working capital
  • short term capital
______________ is concerned with optimal procurement as well as usage of finance.
  • Cost management
  • Financial management
  • Financial decision
  • Management
The _________ decision relates to how the firm's funds are invested in different assets.
  • profit
  • invetment
  • financing
  • dividend
Under the risk factor of financing decision, the risk associated with different sources is _________.
  • same
  • different
  • higher
  • lower
With an increase of investment in fixed assets, there is a commensurate ________ in the working capital.
  • decrease
  • increase
  • equality
  • None of the above
Short term investment decisions are also called as __________ decisions. 
  • capital budgeting
  • wealth maximization
  • working capital
  • both a and b
The amount of debt, equity share capital, preference share capital are __________ by financial decisions, which is a part of financial management.
  • affected
  • not affected
  • minutely affected
  • largely affected
Market price of equity shares ________ if the benefits from a decision exceed the cost involved.
  • increases
  • decreases
  • equalizes
  • both a and c
Which of the following is not a factor affecting financing decision?
  • Cost
  • Risk
  • Investment
  • Cash flow position of the business
Which of the following is not a broad decisions in financial decision-making?
  • Investment decison
  • Cost decision
  • Financing decision
  • Dividend decision
ROI stands for ______________.
  • Return On Investment
  • Return On Internet
  • Retyping Of Instruction
  • Redesigning Of Interpreter
_________ term investment decision are concerned with the decisions about the levels of cash, inventories and debtors.
  • Long
  • Short
  • Medium
  • Both a and c
Under the amount of long term and short term financing to be used, the current liabilities cost is  ______ than long term liabilities.
  • more
  • less
  • equal
  • nil
What are the factors affecting the choice of capital structure?
  • Interest Coverage Ratio
  • Debt Service Coverage Ratio
  • Return on Investment
  • All of the above
Under the amount of long term and short term financing to be used, the underlying assumption is that current liabilities cost _______ than long term liabilities.
  • more
  • less
  • equal
  • nil
Financial Leverage is computed as _______.
  • D/E
  • E/D
  • D + E/D
  • D - E/D
0:0:1


Answered Not Answered Not Visited Correct : 0 Incorrect : 0

Practice Class 12 Commerce Business Studies Quiz Questions and Answers