CUET 2024 Business Studies Chapter 9 – Financial Management MCQ Question and Answers – MCQs for Practice

1. A fixed asset should be financed through ___

2. If dividend portion of total earnings is high, portion of retained earnings will be

3. Companies with a higher growth potential are likely to ___

4. Financial Management aims at

5. A decision to acquire a new and modern plant to upgrade an old one is a ____ .

6. 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?

7. Under which of the following circumstances the fixed capital requirement of a business is not likely to be high?

8. Question

9. Current assets of business firms should be financed through­­­___

10. Question

11. Which of the following statements is not true with regard to the use of fixed capital?

12. Financial leverage is said to be favourable , if :

13. Tata Steels stands at ___ position in the world among the largest producers

14. Which one of the following is related to planning, organising, directing and controlling financial activities?

15. Which of the following is not a tangible asset?

16. The cheapest source of finance is ___

17. Higher Working Capital usually works in

18. Question

19. The size of assets, the profitability and competitiveness are all affected by

20. Other things remaining the same, an increase in the tax rate on corporate profit will