Financial Management-Concept and Objectives of Financial Management [CBSE (Central Board of Secondary Education) Class-12 Business-Studies]: Questions 1 - 8 of 12

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Question 1

Write in Brief One Liner▾

What is the primary objectives of financial management?

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Question 2

Write in Brief One Liner▾

Why does financial risk arise?

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Question 3

Write in Brief One Liner▾

When is financial leverage considered favorable?

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Question 4

Write in Brief One Liner▾

What is Business Finance?

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Question 5

Write in Brief One Liner▾

Enumerate two objectives of financial management?

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Question 6

Appeared in Year: 2006

Write in Short Short Answer▾

Hina and Harish are typists in a company having same educational qualifications. Hina is getting ₹ 3,000 per month and Harish ₹ 4,000 per month as salary for the same working hours. Which principle of management is violated in this case? Name and explain the principle.

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Question 7

Appeared in Year: 2011

Describe in Detail Subjective▾

What is meant by ‘Brand Name’ ? State any four characteristics of a good ‘Brand Name’ .

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Explanation

The verbal part of brand is called brand name.

Characteristics of good brand name are given below:

(1) Should be short and simple:- A brand name should be short and simple for example:- Toyota and Nirma. Short name is easier to remember and easy to pronounce because consumers hesitate to ask for products whose name are difficult to pronounce.

(2) Shou…

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Question 8

Appeared in Year: 2011

Describe in Detail Subjective▾

You are the Financial Manager of a newly established company. The Directors have asked you to determine the amount of working capital requirement for the company. Explain any four factors that you will consider while determining the working capital requirement for the company.

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Explanation

The following are factors that considered while determine the working capital requirement of company.

(1) Phase of business cycle:- Business meetings of different phases such as boom and depression. There is higher sale, higher production and inventories. So, during this period need for working capital increases.

(2) Rate of inflation:- Increasing in…

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