Class 12 Business Studies Chapter 9 MCQ and Important Questions of Financial Management updated for CBSE and State board session 2023-24. Class 12 Business Studies Chapter 9 multiple choice questions and extra questions helps the students in exams to clear the doubts. Class 12 Business Studies Chapter 9 Solutions.
Class 12 Business Studies Chapter 9 MCQ
The main objective of financial management is
Investment decision involves taking ………… Type of decisions
FM is concerned with
Higher degree of debt- equity ratio results in
Concern of Financial Management
- Procurement of funds – Financing Decisions
- Investment of funds – Investing Decisions
- Distribution of earnings – Dividend Decision
Current assets are supposed to be converted into cash within a period of
Working capital refers to the capital mobilized for meeting
The term Capital structure refers to
Tasks for Financial Planning
- Determination of Financial Objectives.
- Formulation of Financial Policies and Rules.
- Selection of Best Alternative.
- Developing Alternative sources of Finance.
- Forecasting the Needs of Finance.
- Implementing Financial Plans and Policies.
…….. varies inversely with profitability.
Financial leverage is called favourable if
Collaboration of two banking companies results in
Companies with higher growth prospects are likely to pay
Importance of Financial Planning
1. To ensure availability of adequate funds at right time.
2. It serves as the basis of financial control. The management attempts to ensure utilization of funds in tune with the financial plans.
3. It attempts to achieve a balance between inflow and outflow of funds. Adequate
liquidity is ensured throughout the year.
4. It results in preparation of plans for future. Thus new projects can be under
5. It provides policies and procedures for the sound administration of finance
6. To see that the firm does not raise funds unnecessarily.
Factors affecting Investment Decisions
- Cash flows of the project
- Rate of Return
- Investment Criteria Involved
Cost and risk are the factors affecting ……….. decision.
Trading on equity is possible if the following condition is fulfilled
……. is the financial process which is concerned with preparation of financial blueprint of an organisation’s future operation.
Trading on equity means
Factors affecting Financing Decision
- Trading on Equity
- Cash Flow Position
- Interest Coverage Ratio
- Return on Investment
- Floatation Cost
- Tax Rate
In this topic, financial management, what is important– MCQs or lengthy topics carrying 4-6 marks are important?
The topic financial management (chapter 9 class 12th business studies) is, by far, the most difficult and lengthy topic of class 12 business studies. The questions relating to capital structure, fixed capital, working capital and dividend decision are having 10-12 points each. It also means there is scope for MCQs in this topic.
Is there a possibility of having a picture-based MCQs?
In the board examination, nothing can be ruled out. There may be a question or two of such types.
Generally, how many options are given for answering MCQs?
Usually four option are given. However, 3-5 options could also be given in some examination.