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Business Studies M.C.Q (1 Marks)

Financial Management · CBSE STD 12 Commerce (CBSE - English Medium). 20 questions.

Questions

M.C.Q (1 Marks)

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20 questions · timed · auto-graded

MCQ 11 Mark
What is related to debt
  • A
    Higher cost higher risk
  • ✓
    Lower cost higher risk
  • C
    High cost low risk
  • D
    Low cost low risk
Answer
Correct option: B.
Lower cost higher risk
(b)
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MCQ 21 Mark
Retained earnings are affected by
  • A
    Financing decision
  • B
    Investment decision
  • ✓
    Dividend decision
  • D
    Capital structure
Answer
Correct option: C.
Dividend decision
(c)
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MCQ 31 Mark
Stock market condition is a factor related to
  • ✓
    Financing decision
  • B
    Dividend decision
  • C
    Investment decision
  • D
    Financial planning
Answer
Correct option: A.
Financing decision
(a)
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MCQ 41 Mark
Gross working capital refers to:
  • A
    Investment in Fixed Assets
  • ✓
    Investment in Current Assets
  • C
    Investment in Bank
  • D
    All of the above
Answer
Correct option: B.
Investment in Current Assets
(b)
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MCQ 51 Mark
What is the cost of raising funds called?
  • ✓
    Flotation Cost
  • B
    Marginal Cost
  • C
    Fixed Cost
  • D
    Variable Cost
Answer
Correct option: A.
Flotation Cost
(a)
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MCQ 61 Mark
If return on investment is less than the rate of interest, then company must prefer
  • ✓
    Equity
  • B
    Debt
  • C
    Both (a) and (b)
  • D
    None of the above
Answer
Correct option: A.
Equity
(a)
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MCQ 71 Mark
Positive leverage effect brings
  • ✓
    Gain for equity shareholders
  • B
    Loss for equity shareholders
  • C
    Both (a) and (b)
  • D
    None of the above
Answer
Correct option: A.
Gain for equity shareholders
(a)
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MCQ 81 Mark
The amount of current assets is decided by
  • ✓
    Working capital concept
  • B
    Fixed capital
  • C
    Investment decision
  • D
    Financing decision
Answer
Correct option: A.
Working capital concept
(a)
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MCQ 91 Mark
The amount of fixed assets is decided by
  • A
    Working capital concept
  • ✓
    Fixed capital
  • C
    Investment decision
  • D
    Financing decision
Answer
Correct option: B.
Fixed capital
(b)
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MCQ 101 Mark
If ICR is high, firm prefers
  • ✓
    Debt
  • B
    Equity
  • C
    Both (a) and (b)
  • D
    None of the above
Answer
Correct option: A.
Debt
(a)
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MCQ 111 Mark
Financial Planning links
  • A
    Investment and dividend decision
  • ✓
    Investment and financing decision
  • C
    Dividend and financing decision
  • D
    None of the above
Answer
Correct option: B.
Investment and financing decision
(b)
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MCQ 121 Mark
The concept which makes sure the availability of right amount of finance at the right time is called
  • ✓
    Financial Planning
  • B
    Capital Structure
  • C
    Working Capital
  • D
    Fixed Capital
Answer
Correct option: A.
Financial Planning
(a)
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MCQ 131 Mark
If large number of shareholders of the firm are from middle income group and old age group who prefer regular income, then the firm should prefer giving
  • A
    Low dividend
  • ✓
    High dividend
  • C
    No dividend
  • D
    None of the above
Answer
Correct option: B.
High dividend
(b)
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MCQ 141 Mark
If a firm has growth opportunities, it should prefer giving
  • ✓
    Low dividend
  • B
    High dividend
  • C
    Does not effect dividend decision
  • D
    None of the above
Answer
Correct option: A.
Low dividend
(a)
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MCQ 151 Mark
The decision related to distribution of residual profit is called
  • A
    Investment decision
  • B
    Financing decision
  • ✓
    Dividend decision
  • D
    None of the above
Answer
Correct option: C.
Dividend decision
(c)
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MCQ 161 Mark
The decision related to acquiring funds from debt or equity is called
  • A
    Investment decision
  • ✓
    Financing decision
  • C
    Dividend decision
  • D
    All of the above
Answer
Correct option: B.
Financing decision
(b)
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MCQ 171 Mark
If fixed operating cost is high, a firm should prefer
  • A
    Debt
  • ✓
    Equity
  • C
    Both (a) and (b)
  • D
    None of the above
Answer
Correct option: B.
Equity
(b)
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MCQ 181 Mark
Capital Structure indicates ratio between
  • A
    Assets and liabilities of the firm
  • B
    Current Assets and Fixed Assets
  • ✓
    Debt and equity in the total capital
  • D
    Profit and Revenue of the firm
Answer
Correct option: C.
Debt and equity in the total capital
(c)
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MCQ 191 Mark
Investment decision is also called
  • ✓
    Capital Budgeting decision
  • B
    Working capital decision
  • C
    Current Assets decision
  • D
    None of the above
Answer
Correct option: A.
Capital Budgeting decision
(a)
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MCQ 201 Mark
The main objective of financial management is
  • A
    Profit Maximisation
  • ✓
    Wealth Maximisation
  • C
    Ensuring availability of finance
  • D
    None of the above
Answer
Correct option: B.
Wealth Maximisation
(b)
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M.C.Q (1 Marks) - Business Studies STD 12 Commerce Questions - Vidyadip