Financial Management: Class 12 Previous Year Questions

Financial Management questions asked in CBSE board exams

Repeated questions first. Open the free app to see each question as it appeared in the paper, with its marking scheme.

1. There are two statements, Assertion (A) and Reason (R). Assertion (A) : The dividend in growth companies is more than that in the non-growth companies. Reason (R) : Companies having good growth opportunities retain more money out of their earnings so as to fin…
   Board 20261 markAssertion-Reason
2. A position when a company is unable to meet its fixed financial charges like interest payment, dividend on preference shares and repayment obligations is referred to as ______ . 1 (A) Trading on equity (B) Financial risk (C) Business risk (D) Operating risk
   Board 20261 markMCQ
3. ‘Certain provisions of the Companies Act place restrictions on payouts as dividend. Such provisions must be adhered to while declaring the dividend.’ The factor affecting dividend decision discussed above is : 1 (A) Access to capital market (B) Contractual con…
   Board 20261 markMCQ
4. There are two Statements, Assertion (A) and Reason (R). Assertion (A) : Larger the lead time, larger is the quantity of material required to be stored and larger shall be the amount of working capital required. Reason (R) : If the raw material do not have a re…
   Board 20251 markAssertion-Reason
5. ·Increase in the profit earned by the equity shareholders due to the presence of fixed financial charges like interest' is called : (A)Financial planning (B)Dividend decision Financing decision (D) (C) Trading on equity 15 (A 1 () (C)- , -I 1 (D)-, - (A) (B) (…
   Board 20251 markMCQ
6. VK Ltd. is a fast moving consumer goods company. It has shareholders spread all over India. Most of its shareholders depend upon a regular income from their investment. VK Ltd. has been earning consistent profits. The management of the company keeps in mind th…
   Board 20254 marksshort answer
7. ·To ensure that enough funds are available at right time to honour the commitments and to carry out the plans' is discussed in which of the following concepts ? Capital Structure (A) (B) Financial Leverage (C) Financial Planning (D) Investment Decision
   Board 20251 markMCQ
8. ·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 …
   Board 20234 markscase-based
9. When the proportion of debt and equity is such that it results in an is/are said to be optimal. increase in the value of equity share the (a) working capital (b) fixed capital (c) (d) capital structure Both (a) and (b) Page 11 15. (a) 3 i f (b) (c) · ·lnh (d) …
   Board 20231 markMCQ
10. Anurag Tiwari is a famous news reader. He has recently started a news company 'Axis Media Corporation Ltd.. The aim of this company is to launch a 24-hour Hindi news channel to broadcast latest news from India and around the world. For this new venture, the co…
    Board 20221 markvery short
11. (A) Explain the following factors affecting financing decision of a company : (a) Control considerations (b) State of capital market OR (B) Explain the following factors affecting the fixed capital requirements of a company: (a) Choice of technique (b) Growth …
    Sample paper 2026-273 marksshort answer
12. Vedant Ltd. is a company with a decreasing EBIT. The company has a significant amount of debt in the form of debentures, and further borrowing through debentures could exacerbate the situation. Which factor determining the Capital Structure is the CFO of Vedan…
    CBSE practice 2023-241 markMCQ
13. Aarti Steel limited is a large creditworthy company manufacturing Steel. The company seeks to enter the Asian market and therefore wants to raise additional funds of ₹1 crore from the primary market. The finance manager of the company Mr. Sundaram has suggeste…
    CBSE practice 2023-241 markvery short
14. Select the statement that does not correctly describe working capital. (A) It consists of funds invested in current assets of the business. (B) It helps in carrying out regular business activities smoothly. (C) It is calculated as the difference between curren…
    Sample paper 2026-271 markMCQ

Practise all 19 Financial Management questions with answers →

Other Class 12 Business Studies (BST) chapters

Frequently asked questions