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MP Board Class 12 (MPBSE) Financial Management — practice questions

Explore 13 free Financial Management questions in MP Board Class 12 (MPBSE) Business Studies. Open each question or exercise to read its content, reference answers and available explanation.

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Financial Management questions and exercises with answers

Showing questions 1–13 of 13.

Financial management is primarily concerned with the:Read the answer and worked solution →The three broad financial decisions taken under financial management are investment, financing and:Read the answer and worked solution →The long-term investment decision concerning fixed assets is also called the:Read the answer and worked solution →The decision about the proportion of debt and equity used to raise funds is the:Read the answer and worked solution →The decision about how much profit to distribute and how much to retain is the:Read the answer and worked solution →The mix of debt and equity used by a company to finance its assets is called its:Read the answer and worked solution →The use of fixed-cost debt funds to increase the return to equity shareholders is known as:Read the answer and worked solution →The capital required to finance day-to-day operations of a business is called:Read the answer and worked solution →The capital invested in long-term fixed assets such as plant and machinery is called:Read the answer and worked solution →The primary objective of financial management is generally taken to be:Read the answer and worked solution →Other things being equal, a company that uses a higher proportion of debt faces higher:Read the answer and worked solution →The cost incurred by a company to raise its funds is referred to as the:Read the answer and worked solution →Sound financial planning aims to ensure that the firm has:Read the answer and worked solution →

Worked practice questions

Financial management is primarily concerned with the:

  1. procurement and optimum use of funds
  2. advertising of products
  3. grouping of activities into departments
  4. selection and training of employees
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Correct answer: A. procurement and optimum use of funds

Financial management deals with raising funds and using them optimally.

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The three broad financial decisions taken under financial management are investment, financing and:

  1. production decisions
  2. dividend decisions
  3. staffing decisions
  4. marketing decisions
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Correct answer: B. dividend decisions

The three decisions: investment, financing and dividend.

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The long-term investment decision concerning fixed assets is also called the:

  1. dividend decision
  2. capital budgeting decision
  3. financing decision
  4. working capital decision
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Correct answer: B. capital budgeting decision

The long-term investment (fixed asset) decision is capital budgeting.

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More Business Studies topics

Business EnvironmentConsumer ProtectionOrganisingPlanningPrinciples of ManagementMarketing Management