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Financial Management

Assam Board · Class 12 · Business Studies

Flashcards for Financial Management — Assam Board Class 12 Business Studies. Quick Q&A cards covering key concepts, definitions, and formulas.

40 questions25 flashcards5 concepts

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25 Flashcards
Card 1Business Finance Basics

What is business finance?

Answer

Business finance refers to the money required for carrying out business activities. It is needed to establish a business, run it, modernise it, expand, or diversify operations. Finance is required for

Card 2Financial Management

Define Financial Management and explain its main objectives.

Answer

Financial Management is concerned with optimal procurement and usage of finance. It involves identifying and comparing different sources of finance in terms of costs and risks, and investing funds to

Card 3Objectives of Financial Management

What is the primary objective of financial management?

Answer

The primary objective of financial management is wealth maximisation - maximising shareholders' wealth by increasing the market value of equity shares. This is achieved when benefits from financial de

Card 4Financial Decisions

What are the three major financial decisions? Name and briefly explain each.

Answer

1. Investment Decision: How to invest firm's funds in different assets (long-term: capital budgeting; short-term: working capital) 2. Financing Decision: What proportion of funds to raise from differe

Card 5Investment Decision

What is Capital Budgeting and why is it important?

Answer

Capital Budgeting is long-term investment decision-making involving commitment of funds for extended periods (e.g., buying machinery, opening new branch). It's crucial because: involves huge amounts,

Card 6Investment Decision

What factors affect Capital Budgeting decisions?

Answer

Three main factors: 1. Cash flows of the project - series of cash receipts and payments over investment life 2. Rate of return - expected returns and risk assessment 3. Investment criteria - various c

Card 7Financing Decision

What factors affect Financing decisions?

Answer

Key factors: Cost (choose cheapest source), Risk (different risk levels), Floatation costs, Cash flow position, Fixed operating costs, Control considerations (equity dilutes control), State of capital

Card 8Dividend Decision

List the main factors affecting Dividend decisions.

Answer

1. Amount of earnings, 2. Stability of earnings, 3. Stability of dividends policy, 4. Growth opportunities, 5. Cash flow position, 6. Shareholders' preference, 7. Taxation policy, 8. Stock market reac

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Frequently Asked Questions

What are the important topics in Financial Management for Assam Board Class 12 Business Studies?
Financial Management covers several key topics that are frequently asked in Assam Board Class 12 board exams. Focus on the core concepts listed on this page and practise related questions to build confidence.
How to score full marks in Financial Management — Assam Board Class 12 Business Studies?
Understand the core concepts first, then work through the 40 practice questions available for this chapter. Revise formulas and definitions regularly, and use flashcards for quick recall before the exam.
How many flashcards are available for Financial Management?
There are 25 flashcards for Financial Management covering key definitions, formulas, and concepts. Use them daily for 10–15 minutes for best results.

Sources & Official References

Content is aligned to the official syllabus. Refer to the board website for the latest curriculum.

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