CUET 2024 Business Studies Chapter 9 – Financial Management MCQ Question and Answers – MCQs for Practice by Meenu Saini | Mar 7, 2023 | General | 0 comments Business Studies Chapter 9 – Financial Management MCQ Question Answers for CUET 2024 1. The size of assets, the profitability and competitiveness are all affected bya.Capital budgeting decisionb.Financing decisionc.Dividend decisiond.Working Capital decision Loading... 2. Current assets of business firms should be financed through___a.Current liability onlyb.Long term liability onlyc.Fixed liabilitiesd.Both sort and long term liabiities Loading... 3. Question a.Assertion (A) is False but Reason (R) is trueb.Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A)c.Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)d.Assertion (A) is true but Reason (R) is False Loading... 4. Financial leverage is said to be favourable , if :a.Return on Investment is lower than the dedtb.ROI is higher than the cost of debtc.Debt is easily availabed.f the degree of financial leverage is low Loading... 5. Under which of the following circumstances the fixed capital requirement of a business is not likely to be high?a.When the financial alternatives are easily availableb.The growth prospects of a compam=ny a highc.Capita intensice techniques of production are usedd.When the raw material is not easily available Loading... 6. Which of the following is not a tangible asset?a.Officesb.Factoriesc.Machineryd.Trademarks Loading... 7. Which one of the following is related to planning, organising, directing and controlling financial activities?a.Capital structureb.Financial decisionc.Financial Managementd.Investment decision Loading... 8. Financial Management aims ata.Reducing the cost of funds procuredb.Keeping the risk under controc.Achieving effective deployment of such fundsd.All of the above Loading... 9. Companies with a higher growth potential are likely to ___a.Dividends are not affectedb.None of thesec.Pay lower dividendsd.Pay higher dividends Loading... 10. Higher Working Capital usually works ina.Lower current raio, higher risk and higher rofitb.Higher equity, higher risk and higher profitc.Higher current ratio, higher risk and higher profitd.Lower quity, lower risk and high profit Loading... 11. A fixed asset should be financed through ___a.Short Term liabilityb.Long tern liabilityc.None of thesed.Medium term liabiity Loading... 12. Question a.Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)b.Assertion (A) is False but Reason (R) is truec.Assertion (A) is true but Reason (R) is Falsed.Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A) Loading... 13. Other things remaining the same, an increase in the tax rate on corporate profit willa.We can't sayb.Have no impact on cost of debtc.Make the debt relatively cheaperd.Make the debt reatively the dearer Loading... 14. Tata Steels stands at ___ position in the world among the largest producersa.3rdb.2ndc.5thd.4th Loading... 15. 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.Project Ab.Project Bc.Both projet A and project Bd.None of the above Loading... 16. The cheapest source of finance is ___a.Preference shareb.Debenturec.Equity share capitald.Retained earning Loading... 17. Which of the following statements is not true with regard to the use of fixed capital?a.A large number of funds are involvedb.It affects the long term growth of the businessc.The incestment decisions are irreversibled.The business risk involved is low Loading... 18. Question a.Assertion (A) is true but Reason (R) is Falseb.Assertion (A) is False but Reason (R) is truec.Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)d.Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A) Loading... 19. A decision to acquire a new and modern plant to upgrade an old one is a ____ .a.Working Capital Decisionb.None of thesec.Financial Decisiond.Investment Decision Loading... 20. If dividend portion of total earnings is high, portion of retained earnings will bea.Moderateb.Equalc.Lowd.High Loading... Loading... 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 Submit a Comment Cancel replyYou must be logged in to post a comment.