Business Studies Chapter 9 – Financial Management MCQ Question Answers for Various Entrance Exams

1. Under which of the following circumstances the fixed capital requirement of a business is not likely to be high?
a.
b.
c.
d.

2. Higher Working Capital usually works in
a.
b.
c.
d.

3. Financial leverage is said to be favourable , if :
a.
b.
c.
d.

4. The cheapest source of finance is ___
a.
b.
c.
d.

5. A fixed asset should be financed through ___
a.
b.
c.
d.

6. Which of the following is not a tangible asset?
a.
b.
c.
d.

7. Financial Management aims at
a.
b.
c.
d.

8. Other things remaining the same, an increase in the tax rate on corporate profit will
a.
b.
c.
d.

9. If dividend portion of total earnings is high, portion of retained earnings will be
a.
b.
c.
d.

10. 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 circumstances, which of the two projects is likely to be selected?
a.
b.
c.
d.

11. Question
a.
b.
c.
d.

12. Companies with a higher growth potential are likely to ___
a.
b.
c.
d.

13. Which of the following statements is not true with regard to the use of fixed capital?
a.
b.
c.
d.

14. Question
a.
b.
c.
d.

15. Tata Steels stands at ___ position in the world among the largest producers
a.
b.
c.
d.

16. Which one of the following is related to planning, organising, directing and controlling financial activities?
a.
b.
c.
d.

17. A decision to acquire a new and modern plant to upgrade an old one is a ____ .
a.
b.
c.
d.

18. Current assets of business firms should be financed through­­­___
a.
b.
c.
d.

19. Question
a.
b.
c.
d.

20. The size of assets, the profitability and competitiveness are all affected by
a.
b.
c.
d.


 


 
Also See :
 
Business Studies Chapter 1 – Nature and Significance of Management MCQs
 
Business Studies Chapter 2 – Principles of Management MCQs
 
Business Studies Chapter 3 – Principles of Management MCQs
 
Business Studies Chapter 4 – Planning MCQs
 
Business Studies Chapter 5 – Organising MCQs
 
Business Studies Chapter 6 – Staffing MCQs
 
Business Studies Chapter 7 – Directing MCQs
 
Business Studies Chapter 8 – Controlling MCQs
 
Business Studies Chapter 10 – Financial Markets MCQs
 
Business Studies Chapter 11 – Marketing Management MCQs
 
Business Studies Chapter 12 – Consumer Protection MCQs