In NCERT Class 12 Business Studies Chapter 9, titled "Financial Management", students explore the efficient and effective management of funds to achieve organizational objectives. The chapter discusses the objectives of financial management, the importance of financial planning, and the critical decisions involved in managing finances, such as investment, financing, and dividend decisions.
This article provides a comprehensive resource for exam preparation. It includes sample MCQs and subjective questions for CBSE and CUET, alongside downloadable PDFs of Class 12 Business Studies Chapter 9 MCQs and previous year questions for detailed practice of NCERT Class 12 Financial Management.
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NCERT Class 12 Business Studies Chapters
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CUET Free Master Classes:
Class 12 Business Studies Chapter 9 MCQs
This question bank includes previous years' CUET and CBSE MCQs, along with questions curated by subject experts. Below are 5 sample multiple-choice questions (MCQs) for Class 12 Business Studies Chapter 9: Financial Management. For the full set of 50 questions, download the PDF using the link provided below.
1- Choose the correct sequence of first five steps of setting up a business.
A. Appraisal by the funding agencies.
B. Scanning the environment for entrepreneurial opportunities.
C. Assessment of feasibility of the idea and preparation of business plan.
D. Resource mobilization.
E. Development of product/service idea.
Choose the correct answer from the options given below:
(a) B, D, A, C, E (b) D, B, A, E, C (c) D, B, E, C, A (d) D, B, C, E, A
2. Identify which of the following is not a ‗regulatory function‘ of SEBI?
(a) Controlling insider trading (b) Registration of brokers
(c) Regulation of take - over bids (d) Registration of Mutual funds
3. Identify, which of the following is not a function of a stock exchange?
(a) Providing liquidity to existing securities. (b) Regulation of take - over bids by companies.
(c) Pricing of securities. (d) Spreading of equity cult.
4. Reduction of controlling power of existing equity shareholders in a company is a result of.
(a) Issue of new equity shares (b) Issue of new preference shares
(c) Issue of new debentures (d) Issue of new bonds
5. Which among the following factors affects capital Budgeting decision.
A. Floatation cost B. Cash flow of project
C. Control considerations D. The rate of return
E. The investment criteria involved
Choose the correct answer from the options given below:
(a) B, D and E only (b) C, A and B only (c) D, B and C only (d) A, B and C only
Class 12 Business Studies Chapter 9 Subjective Questions Without Solutions
This question bank includes previous years' CBSE subjective questions (2 marks and above) without solutions, along with expert-curated questions. Below are 5 sample subjective questions for Class 12 Business Studies Chapter 9: Financial Management. To access all questions, download the PDF from the link provided below.
- Give the meaning of 'Financial Management'. Explain any three points that highlight the role of financial management.
(CBSE 2023, 4M)
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- State any three factors affecting the capital budgeting decision of a company.
(CBSE 2022, 3M)
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- G. Motors' is the manufacturer of sophisticated cranes. The Production manager of the company, reported to the Chief Executive Officer, Ashish Jain that one of the machines used in manufacturing sophisticated cranes had to be replaced to compete in the market, as other competitors were using automatic machines for manufacturing cranes. After a detailed analysis, it was decided to purchase a new automatic machine having the latest technology. It was also decided to finance this machine through long term sources of finance. Ashish Jain compared various machines and decided to invest in the machine which would yield the maximum returns to its investors.
(a) Identify the financial decision taken by Ashish Jain.
(b) Explain any three factors affecting the decision identified in (a) above.
(CBSE 2019, 3M)
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- Zenith Mall is a famous shopping mall in Mumbai, owned by 'Pinnacle Group'. It is very popular for its international and national brands of fashionable clothes, restaurants, cinema halls and food courts.
The management of Pinnacle Group has decided to open a new branch of the mall in Pune. This decision was very crucial for the management as it involves huge amounts.
(i) Identify and state the financial decision involved in the above case.
(ii) State any two factors affecting the decision identified in (i) above.
(CBSE 2023, 4M)
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- What is meant by 'Investment Decision'? State how 'Long term Investment Decision' and 'Short term Investment Decision' affect the business.
(CBSE 2023, 4M)
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Sub Areas of Chapter 9: Financial Management
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Chapter Name
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Sub Topics
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Financial Management
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9.1 Introduction
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9.2 Meaning and Objectives of Financial Management
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9.3 Financial Planning
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9.4 Investment Decision
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9.5 Financing Decision
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9.6 Dividend Decision
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9.7 Factors Affecting Financial Decisions
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9.8 Working Capital Management
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Review of NCERT Class 12 Business Studies Chapter 9
In NCERT Class 12 Business Studies Chapter 9, "Financial Management," students learn about the strategic management of funds and resources to achieve business goals. The chapter highlights the importance of financial planning and the three core financial decisions: investment, financing, and dividend decisions.
By mastering this chapter, students enhance their understanding of financial strategies and their impact on business growth. Practicing MCQs and subjective questions helps students prepare thoroughly for CBSE, CUET, and other competitive exams.
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