Finance is a requirement to set up a business, to run it, to modernize, it to expand or diversify it. This will help the candidates to know the solutions for all subjects covered in Class 12th. MCQ Questions for Class 12 Business Studies: Ch 9 Financial Management. Candidates can click on the subject wise link to get the same. CBSE 12th Business Studies Board Exam important questions & answers of chapter 9 (Financial Management) are given below. (All India 2009), Ans. (ii) Ensures effective utilisation of funds. Free PDF download of Important Questions with Answers for CBSE Class 12 Business Studies Chapter 9 - Financial Management prepared by expert Business Studies teachers from latest edition of CBSE(NCERT) books. Factors Determining the Capital Structure. Download NCERT Solutions Class 12 Business Studies Financial Management free pdf, NCERT Solutions updated as per latest NCERT book, NCERT Solutions Class 12 Business Studies Chapter 9 Financial ManagementQuestion 1. Role and importance of financial management in the modern business . CBSE 12th Business Studies Board Exam important questions & answers of chapter 9 (Financial Management) are given below. Importance Financial Management: The importance of financial management is vital to an organization. It facilitates collection of optimum funds. It tries to invest funds in various assets with a view to maximise the return on shareholders’ investment.                                                                                                                             . It is a pathway to attain goals and objectives. To assist you with that, we are here with notes. FINANCIAL MANAGEMENT Financial Management: Definition Financial Management is concerned with optimal procurement as well as usage of finance. Nov 26, 2020 - Important Questions : Financial Management Class 12 Notes | EduRev is made by best teachers of Class 12. Factors Affecting Requirement of Fixed Capital. Free PDF download of Class 12 Business Studies Chapter 9 - Financial Management Revision Notes & Short Key-notes prepared by our expert Business Studies teachers from latest edition of CBSE(NCERT) books. Financial Management: The course discusses Financial Statements with Meaning, performa, Treatment of Some Important Items. Sound financial management is the key to the prosperity of business because of the following advantages: (Any three). (i)Ensuring availability of funds at reasonable cost. CBSE Class 12 Business Studies Chapter-9 Important Questions . (Delhi 2009), What do you understand by the term ‘financial managementâ? Financial management is concerned with the acquisition (investment), financing (arranging funds), and management of assets with some overall goal in mind. Working Capital Working Capital refers to excess of Current assets over Current liabilities. Objectives of Financial Management The objective of financial management is maximisation of shareholders’ wealth. Ans. The primary aim of financial management is to maximise shareholders’ wealth. Pages. The financial functions relate to three major decisions which very finance manager has to take, 7. The primary objective of financial management is to maximise shareholders’ wealth. 2. Business Studies Class 12 Revision Notes Chapter 9 Financial Management. Hope these notes will helps you understand the important topics and remember the key points for exam point of view. A business needs to invest funds for setting up new business, for expansion and modernisation. CBSE Class 12 Case Studies In Business Studies – Marketing Management. Dec 04, 2020 - Chapter 9 - Financial Management (Class Notes), BST, Class 12, CBSE | EduRev Notes is made by best teachers of Commerce. (i)It helps in determining size as well as the composition of fixed assets, (ii)It helps in determining the quantum of current assets, (iii)It helps in determining the amount of long-term and short-term financing required Civ) Break-up of long-term financing into debt and equity. Second part coming soon..! In a financial context, it means the selection of best financing alternative or best investment alternative. by means of shareholders’ funds or borrowed funds. Business organizations – Financial management is important to all types of business organization i.e. Financial management is concerned with optimal procurement as well as the usage of finance. Shareholders’ funds include share capital, reserves and surplus and retained earnings, whereas borrowed funds include debentures, long-term loans and public deposits. (Foreign 2014; All India 2011). Pages. This document is highly rated by Commerce students and has been viewed 53963 times. Nature and Significance of Management class 12 Notes Business Studies NATURE AND SIGNIFICANCE OF MANAGEMENT Management is an art of getting things done with and through others. Financial management is concerned with the solution of three major issues relating to the financial operations of a firm corresponding to the three questions of investment, financing and dividend decision. Increase in market value of shares depends on the financial decisions taken by the firm. 3.Wealth maximisation is the primary objective of financial management. Investment decision is taken after careful scrutiny of available alternatives in terms of costs involved and expected return. 1. Business Finance Money required for carrying out business activities is called Business Finance. Free PDF download of Important Questions with Answers for CBSE Class 12 Business Studies Chapter 9 - Financial Management prepared by expert Business Studies teachers from latest edition of CBSE(NCERT) books. Discuss importance of Financial Planning. (ii) Ensuring effective utilisation of funds. Commerce Chapter 9 - Financial Management (Class Notes), BST, Class 12, CBSE | EduRev Notes Summary and Exercise are very important for perfect preparation. Fixed Capital Fixed Capital involves allocation of firm’s capital to long term assets or projects. NCERT Solutions for Class 6, 7, 8, 9, 10, 11 and 12. On the other hand, some other aspects of financial management will help the investors for teaching or guiding … The best app for CBSE students now provides Principles of Management class 12 Notes Business Studies latest chapter wise notes for quick preparation of CBSE board exams and school based annual examinations. (a) What is the main objective of financial management? 9. Dividend Decision This relates earned. Important Questions with Answers for CBSE Class 12 Business Studies Chapter 9- Financial Management which is outlined by expert Business Studies teachers from the latest version of CBSE (NCERT) books. Ans. This decision relates to careful selection of assets in which funds will be invested by the firms. (iii) These have a significant effect on the profitability and future of the business. Meaning of Business Finance; Financial Planning; Financing Decision; Capital Structure What is the objective of financial management? (Delhi 2010), State the objectives of financial management. The cheapest source of finance is:Debenture.Equity share capital.Preference share.Retained earnings.Answer -: (d) Retained earnings.Question 2. (iii) Utilization of funds in the most productive and effective manner. For optimal procurement, different available sources of finance are identified and compared in terms of their costs and associated risks. The importance/significance of financial management can be discussed/ explained from the following angles: I – Importance to all types of organizations i. Arun is a successful businessman in the paper industry. It improves operational efficiency by providing a timely supply of fund. This document is highly rated by Class 12 students and has been viewed 5872 times. Check these questions and prepare well for the CBSE class 12 … Free PDF download of Important Questions with Answers for CBSE Class 12 Business Studies Chapter 10 - Financial Markets prepared by expert Business Studies teachers from latest edition of CBSE(NCERT) books. To understand and apply the right management practices in the handling and use of funds, one has to know how Comment. Working capital of a business plays important role in … Below we provided the Notes of Class 12 Business Studies for topic Financial Management. Business Studies Class 12 An initiative to make learning 24 X 7. CBSE Sample Papers 2021 for Class 12 – Urdu (Elective), CBSE Sample Papers 2021 for Class 12 – Urdu (Core), CBSE Notes Class 12 Business Studies Financial Market, The amount of long term and short financing. Financial Management. Financial Management means planning, organizing, directing and controlling the financial activities of the enterprise. Mainly sources of finance can be divided into two categories, Factors affecting financing decisions are. Marketing Management class 12 Notes Business Studies. Financial Planning is process of framing objectives, policies, procedures, programmes and budgets regarding the financial activities of a concern. Introduction to Financial Management. Case Studies – (Chapter - 9) Financial Management, BST Class 12 Full Screen Case Studies – (Chapter - 9)Financial Management Q. Business Studies Class 12 An initiative to make learning 24 X 7. Let’s define financial management as the first part of the introduction to financial management. It helps in fixing the most appropriate capital structure. Free PDF download of Important Questions with Answers for CBSE Class 12 Business Studies Chapter 10 - Financial Markets prepared by expert Business Studies teachers from latest edition of CBSE(NCERT) books. Free PDF download of Class 12 Business Studies Chapter 9 - Financial Management Revision Notes & Short Key-notes prepared by our expert Business Studies teachers from latest edition of CBSE(NCERT) books. 13. The primary objective of financial management is to maximise shareholdersâ wealth. Exemplar Questions Class 12 is a very important resource for students preparing for the Examination. To ensure adequate returns to the shareholders which will depend upon the earning capacity, market price of the share, expectations of the shareholders. These solutions for Financial Management are extremely popular among Class 12 Commerce students for Business studies Financial Management Solutions come handy for quickly completing your homework and preparing for exams. Planning means the determination what is to be done, how and where is to be done, who is to do it and how the results are to be evaluated. Working capital can be defined as the excess of current assets over current liabilities. Financial Planning- concept and importance. 5.Give the meaning of Investment and financing decisions of financial management. source: moneyinformer. Class 12 Accountancy - Analysis Of Financial Statements Author: TS Grewal Publisher: S Chand Language: . For the sake of the candidates we are providing Class 12 Mock Test / Practice links below. Here on AglaSem Schools, you can access to NCERT Book Solutions in free pdf for Business Studies for Class 12 so that you can refer them as and when required. This document is highly rated by Class 12 … 21. Register for Online tuition on Vedantu.com to score more marks in … Class 12 Chapter-wise, detailed solutions to the questions of the NCERT textbooks are provided with the objective of helping students compare their answers with the sample answers. You can see some Chapter 9 - Financial Management (Class Notes), BST, Class 12, CBSE | EduRev Notes sample questions with examples at the bottom of this page. Register for Online tuition on Vedantu.com to score more marks in … (iv) Ensures safety of funds through creation of reserves, re-investment of profits, etc. This means maximisation of the market value of equity shares. CBSE class 12 Business Studies Financial Management class 12 Notes Business Studies in PDF are available for free download in myCBSEguide mobile app. Learn the concepts of Class 12 Business Studies Financial Management with Videos and Stories. The entire NCERT textbook questions have been solved by best teachers for you. 1.Define financial management. Ans. (iii) Tries to generate sufficient profits to finance expansion and modernisation of the enterprise and secure stable growth. 26. Management can be defined as, the process of getting things done with the aim of achieving organizational goals effectively and efficiently. All questions and answers from the NCERT Book of Class 12 Commerce Business studies Chapter 1 are provided here for you for free. Financial Management is the process of acquiring funds optimally (at minimum cost possible keeping the risk factor also low) and utilising them in the best possible manner to maximise shareholders’ wealth. NCERT Solutions for Class 12 Business Studies Chapter 9 Financial Management Short Answer Type Questions. 10. Factors affecting investment/capital budgeting decisions are, 8. Financing Decision This relates to composition of various securities in the capital structure of the company. To ensure availability of funds whenever these are required. Functions of Management includes planning, organizing, staffing, directing and controlling. References to Educational Sites and resources. 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It is recommended for the students to practice the given Class 12 Economics chapter wise important questions with the answers. Ans. 5. According to Weston and Brighan, âFinancial management is an area of financial decision-making harmonising individual motives and enterpriseâs goalsâ. (Compartment 2014), What is meant by financial management? The best app for CBSE students now provides Financial Management class 12 Notes Business Studies latest chapter wise notes for quick preparation of CBSE board exams and school based annual examinations. Capital Structure- Concept. State the primary objective of financial management. Importance of Financial Planning. Discuss the importance of financial planning in financial management. The financial manager measures organizational efficiency through proper allocation, acquisition, and management. Financial Management It refers to efficient acquisition of finance, efficient utilisation of finance and efficient distributing and disposal of surplus for smooth working of company. 3.Importance of Financial Management. This means maximisation of the market value of equity shares. MCQ Questions for Class 12 Business Studies: Ch 9 Financial Management. NCERT Solutions Class 12 Business Studies Chapter 9 Financial Management. NCERT Solutions for Class 12 Commerce Business studies Chapter 1 Financial Management are provided here with simple step-by-step explanations. For any business, it is important that the finance it procures is invested in a manner that the returns from the investment are higher than the cost of finance. 1 rating. The revision notes covers all important formulas and concepts given in the chapter. Prepared by teachers of one of the best CBSE schools in Delhi. (ii) These generally involve commitment of huge funds. It is because the procurement of all other resources is based on financial resources and its management. Decisions, relating to investment in fixed assets are known as capital budgeting, whereas those concerning investment in current assets are called working capital decisions. You will also love the ad … According to Weston and Brighan, ‘Financial management is an area of financial decision-making harmonising individual motives and enterprise’s goals’. CBSE Class 12 - Business Studies - Financial Management - Important Terms and Keywords (#cbsenotes)(#eduvictors) CBSE Papers, Questions, Answers, MCQ ... Blog provides NCERT solutions, CBSE, NTSE, Olympiad study material, model test papers, important Questions and Answers asked in CBSE examinations. – Philip Kotler Marketing management is “the art and science of choosing target markets and … Proper financial management will help firms to supply better product to its customers at lower prices, a pay higher salary to its employees and still provide a greater return to investors. Investment decisions It involves careful selection of assets in which funds are to be invested. 6.Explain the concept and the objective of financial management. Browse more Topics under Financial Management. Factors Affecting the Working Capital. This is the fourth importance of financial management and it means, these institutions are also the source of finance funds for our business because they provide capital to business enterprise or company through under the process of financial management to make a sound choice of industry, investment decisions, and … (iii) Ensuring safety of funds by creating reserves, reinvestment of profits, etc. CBSE quick revision note for class-12 Business Studies, Chemistry, Math’s, Biology and other subject are very helpful to revise the whole syllabus during exam days. 17. 2.What is the primary objective of financial management? Explain the role of financial management in an organisation 4. Fixed and Working Capital- Concept and factors affecting their requirements. Interest Coverage Ratio (lCR) = (EBIT/Interest), Availability of finance and leasing facility. On the contrary, fall in the market price of the shares has an adverse effect on their wealth. 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