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

1. Question
a.
b.
c.
d.

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

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

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

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

6. Question
a.
b.
c.
d.

7. 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.

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

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

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

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

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

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

14. Question
a.
b.
c.
d.

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

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

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

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

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

20. Higher Working Capital usually works in
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