CBSE Class 12 Financial Management Multiple Choice Questions with Answers. MCQ Questions Class 12 Financial Management with Answers Is Prepared Based on Latest Exam Pattern. Students can solve NCERT MCQ questions Class 12 Financial Management with Answers to know their preparation level.
Students who are searching for NCERT MCQ Questions Class 12 Financial Management with Answers are compiled here to get good practice on all fundamentals. Know your preparation level on MCQ Questions for Class 12 Financial Management with Answers. You can also verify your answers from the provided MCQ Class 12 Financial Management with Answers. So, ace up your preparation with MCQ of Class 12 Business Studies Examinations.
MCQ Questions Class 12 Financial Management with Answers - Set - 2
Question 1:
The total capital of Uranium Private Limited is ?50 lacs. The amount of debt is ?20 lacs. The company has earned a profit of ^10 lacs during the current financial year. Its return on investment (ROI) for the present year is
(a) 20%
(b) 40%
(c) 10%
(d) 80%
Correct Answer – (A)
Question 2:
Under which of the following situations a company is not likely to issue equity capital?
(a) When the debt service coverage ratio is high.
(b) When the interest coverage ratio is high.
(c) When the cost of debt capital is low.
(d) All of the above
Correct Answer – (D)
Question 3:
Under which of the following circumstances the fixed capital requirement of a business is not likely to be high?
(a) When the raw material is not easily available
(b) Capital intensive techniques of production are used
(c) The growth prospects of a company a high
(d) When the financial alternatives are easily available
Correct Answer – (D)
Question 4:
______________ capital refers to investment in long-term assets.
(a) Fixed
(b) Variable
(c) Working
(d) Both (b) and (c)
Correct Answer – (C)
Question 5:
___________________ is the time span between acquisition of goods and realisation of sale proceeds.
(a) Working capital
(b) Payback Period
(c) Operating Cycle
(d) Account Receivables Period
Correct Answer – (C)
MCQ Questions Class 12 Financial Management With Answers
Question 6:
If the rate of return on investment for a company is 16%, a situation of unfavourable financial leverage will be said to arise when the rate of interest payable on debt capital is
(a) More than 16 %
(b) Less than 16 %
(c) Equal to 16%
(d) None of the above
Correct Answer – (A)
Question 7:
Which of the following statements is not true with regard to use of fixed capital?
(a) It affects the long term growth of the business.
(b) Large amount of funds are involved.
(c) The business risk involved is low.
(d) The investment decisions are irreversible.
Correct Answer – (C)
Question 8:
The working capital requirement of a business is not likely to be high when?
(a) The nature of business is trading
(b) Scale of operation of business is small
(c) It is difficult to procure raw material
(d) The rate of inflation is low
Correct Answer – (C)
Question 9:
______________________ Gross working capital represents the total investment in assets.
(a) Current
(b) Fixed
(c) Tangible
(d) Intangible
Correct Answer – (A)
Question 10:
_______________________ involves increasing the proportion of debt and preference shares in total capital.
(a) Trading on equity
(b) Capital Budgeting
(c) Financing decision
(d) Financial Analysis
