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Worksheet: Financial Management | Business Studies (BST) Class 12 - Commerce PDF Download

Multiple Choice Questions


Q1: What is the primary goal of financial management?
(a) Profit maximization
(b) Wealth maximization
(c) Revenue maximization
(d) Market share maximization

Q2: Which financial statement reflects the financial position of a company at a specific point in time?
(a) Income statement
(b) Cash flow statement
(c) Balance sheet
(d) Statement of changes in equity

Q3: Which financial ratio measures a company's ability to meet its short-term obligations?
(a) Return on investment (ROI)
(b) Current ratio
(c) Debt to equity ratio
(d) Gross profit margin

Q4: What is the purpose of financial planning in an organization?
(a) To increase expenses
(b) To reduce profits
(c) To achieve financial goals
(d) To complicate decision-making

Q5: Which financial instrument represents ownership in a corporation?
(a) Bonds
(b) Debentures
(c) Equity shares
(d) Preference shares

Very Short Answers


Q1: Define working capital.

Q2: Explain the concept of 'Time Value of Money'.

Q3: List any five sources of short-term finance.

Q4: Differentiate between fixed capital and working capital. 

Q5: What is the significance of the 'Dividend Decision' in financial management?

Short Answers 


Q1: Discuss the importance of financial ratios in evaluating a company's performance.

Q2: Explain the factors influencing the capital structure of a company.

Q3: Elaborate on the role of financial planning in minimizing business risks.

Q4: Discuss the steps involved in the capital budgeting process.

Q5: Examine the role of financial markets in facilitating economic growth.

Long Answers 


Q1: Discuss the objectives and importance of financial management in a business organization.

Q2: Explain the concept of working capital cycle and its significance for business operations.

Q3: Describe the factors influencing dividend policy decisions in a company. 

Case-Based Questions


Q1: Case 1: Working Capital Management
ABC Ltd. is facing challenges in managing its working capital efficiently. Answer the following sub-questions:
Evaluate the consequences of ineffective working capital management on ABC Ltd.'s financial performance.

Q2: Explain the role of financial ratios in assessing ABC Ltd.'s working capital position.

Q3: Discuss the importance of considering the time value of money in capital budgeting decisions.

Q4: Discuss the impact of LMN Ltd.'s dividend policy on its shareholders and overall financial health.

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