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Important Questions

Financial Management — Important Questions

Madhya Pradesh Board · Class 12 · Business Studies

45 important questions from Financial Management for Madhya Pradesh Board Class 12 Business Studies, with answers. Written for the board exams 2027.

45 questions68 flashcards3 formulas & key relations5 concepts

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An infographic illustrating the meaning and various uses of business finance, showing how it's needed for establishment, running, modernization, expansion, and diversification, and for both tangible a
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45 Questions·
multiple choicemultiple correctassertion reasoningshort answerlong answer

Important Questions from Financial Management

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 Madhya Pradesh Board Class 12 Business Studies?
Key topics in Financial Management include Meaning of Business Finance and Financial Management, Objectives and Financial Decisions, Financial Planning, Capital Structure and Financial Leverage. Study these first, then practise questions on each for the Madhya Pradesh Board Class 12 board exam.
How many important questions are there in Financial Management?
Super Tutor has 45 practice questions for Financial Management, including multiple choice, multiple correct, assertion reasoning, short answer, long answer questions. A sample with answers is on this page.

Sources & Official References

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

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All Madhya Pradesh Board Class 12 Business Studies Important Questions

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