GetMyMockTest

Class 12 Business Studies: Financial Management — Chapter Test 1

Class 12 • Business Studies • Financial Management • Chapter Test

MediumFREE

15

Questions

20 min

Duration

15

Marks (1 each)

No

Negative marking

Original practice questions with full solutions by ExamPortal.

Instructions

  • • Read each question carefully and pick the correct answer.
  • • You can mark questions for review and come back to them.
  • • Answers are saved automatically.
  • • The test is submitted automatically when time runs out.

Access

This test is completely free.

Finish it to earn +5 points.

SYLLABUS & QUESTION BLUEPRINT

Sample Practice Questions

Preview 5 sample questions from this 15-question test. Test your knowledge below or take the full exam in timed CBT mode.

Question 1 of 15
Financial management deals with:
A
marketing products
B
procurement and effective utilisation of funds
C
hiring staff
D
production only
View Correct Answer & Step-by-Step Solution
Correct Option:(B)procurement and effective utilisation of funds

Detailed explanation is available inside the official test attempt review.

Question 2 of 15
The three financial decisions are:
A
hiring, firing and training
B
investment, financing and dividend decisions
C
buying, selling and storing
D
planning, organising and directing
View Correct Answer & Step-by-Step Solution
Correct Option:(B)investment, financing and dividend decisions

Detailed explanation is available inside the official test attempt review.

Question 3 of 15
Capital budgeting relates to:
A
short-term investment
B
long-term investment decisions
C
dividend policy
D
working capital
View Correct Answer & Step-by-Step Solution
Correct Option:(B)long-term investment decisions

Detailed explanation is available inside the official test attempt review.

Question 4 of 15
Financial leverage refers to the use of:
A
equity only
B
fixed-cost debt in the capital structure
C
no borrowing
D
retained earnings only
View Correct Answer & Step-by-Step Solution
Correct Option:(B)fixed-cost debt in the capital structure

Detailed explanation is available inside the official test attempt review.

Question 5 of 15
'Trading on equity' is beneficial when:
A
the rate of return on investment is higher than the rate of interest on debt
B
interest is higher than return
C
there is no debt
D
profits fall
View Correct Answer & Step-by-Step Solution
Correct Option:(A)the rate of return on investment is higher than the rate of interest on debt

Detailed explanation is available inside the official test attempt review.

Want to practice all 15 questions under exam conditions?

Experience real CBT interface, live countdown timer, question palette, and get your instant All-India rank & percentile.

Try next

Frequently asked questions

How many questions are there in Class 12 Business Studies: Financial Management — Chapter Test 1?

There are 15 questions to answer in 20 min. Each correct answer gives 1 mark, for a total of 15 marks.

Is there negative marking?

No. Wrong answers do not lose marks, so attempt every question.

Is this mock test free?

Yes, it is completely free. Just log in with your email to start.

What does this test cover?

It covers the chapter "Financial Management" of Class 12 Business Studies. All questions are original, with a full solution for each.

Will I see my result and the solutions?

Yes. Right after you submit you get your score, accuracy, rank and percentile, and you can review every question with the correct answer and a step-by-step explanation.

Can I take this test again?

Yes, you can retake it as many times as you like and compare your scores.