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Important Questions

Financial Management

Chhattisgarh Board · Class 12 · Business Studies

Most important questions from Financial Management for Chhattisgarh Board Class 12 Business Studies board exam 2026. MCQs, short answer, and long answer questions with marks.

40 questions25 flashcards5 concepts

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40 Questions·
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Sample Questions

1multiple correct

Which of the following are the three main financial decisions? (Select all correct answers)

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Investment Decision, Financing Decision, Dividend Decision

Financial management is concerned with three broad decisions: Investment Decision (where to invest funds), Financing Decision (how to raise funds), and Dividend Decision (how much profit to distribute vs. retain).

2multiple correct

Which of the following factors affect capital budgeting decisions? (Select all correct answers)

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Cash flows of the project, Rate of return, Investment criteria involved

Capital budgeting decisions are affected by cash flows expected from the project, the rate of return it will generate, and the investment criteria used to evaluate the project's viability.

3multiple choice

What does capital structure refer to?

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The mix between owners' funds and borrowed funds

Capital structure refers to the mix between owners' funds (equity) and borrowed funds (debt). It can be calculated as debt-equity ratio or as the proportion of debt out of total capital.

4multiple choice

What is Trading on Equity?

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Increase in profit earned by equity shareholders due to fixed financial charges

Trading on Equity refers to the increase in profit earned by equity shareholders due to the presence of fixed financial charges like interest. It happens when the return on investment is higher than the cost of debt.

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Frequently Asked Questions

What are the important topics in Financial Management for Chhattisgarh Board Class 12 Business Studies?
Financial Management covers several key topics that are frequently asked in Chhattisgarh 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 — Chhattisgarh 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 important questions are there in Financial Management?
There are 40 practice questions available for Financial Management. These cover multiple question types including MCQs, short answer, and long answer questions.

Sources & Official References

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

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