i want a economies best bookFinancial Management/Business Finance - Class 12 Business Studies MCQs (Free Practice Test)
************************************************
A select subset of questions has been made available here.
You can use this for preparation purpose.
Once you are ready, click on 'Take Quiz' to start the QUIZ.
***********************************************
Question :
A fixed asset should be financed through
Answer :
 | a long-term liability |
| a short-term liability | |
| a mix of long and short-term liabilities |
Question :
Current assets of a business firm should be financed through
Answer :
| a current liability only | |
| long-term liability only | |
| partly from both types, i.e., loan and short-term liabilities |
Question :
Current assets are those assets which get converted into cash
Answer :
| within six months | |
| within one year |
| between one and three years | |
| between three and five years |
Question :
A decision to acquire a new and modern plant to upgrade an old one is a
Answer :
| financing decision | |
| equity share capital | |
| investment decision |
| dividend decision |
Question :
Higher working capital usually results in
Answer :
| higher current ratio, higher risk and higher profits |
| lower current ratio, higher risk and profits | |
| higher equitably, lower risk and lower profits | |
| lower equitably, lower risk and higher profits |
Question :
Higher dividends per share is associated with
Answer :
| high earnings, high cash flows, unusable earnings and higher growth opportunities | |
| high earnings, high cash flows, stable earnings and high growth opportunities | |
| high earnings, high cash flows, stable earnings and lower growth opportunities |
| high earnings, low cash flows, stable earnings and lower growth opportunities |
Question :
Companies with higher growth paternal are likely to
Answer :
| pay lower dividends |
| pay higher dividends | |
| dividends are not affected by growth considerations | |
| none of the above |
Question :
Financial leverage is called favourable if
Answer :
| Return on Investment is lower than cost of debt | |
| ROI is higher than cost of debt |
| Debt is nearly available | |
| If the degree of existing financial leverage is low |
Question :
Financial planning arrives at
Answer :
| minimising the external borrowing by resorting to equity shares | |
| ensuring that the firm always have significantly more funds than required so that there is no paucit> of funds | |
| ensuring that the firm faces neither a shortage nor a glut of unusable funds |
| ensuring that the firm faces neither a shortage nor a glut of unusable funds |
Question :
The cheapest source of finance is
Answer :
| debenture |
| equity share capita | |
| preference share | |
| retained earnings |
