CBSE Class 12 Business Studies Financial Management Worksheet Set 08

Practice Worksheets for Class 12 Business Studies: Chapter 09 Financial Management

Review targeted practice sets for Class 12 Business Studies Chapter 09 Financial Management. Built according to official educational guidelines for the 2026-27 academic year, these downloadable worksheets support daily revision and core concept reinforcement.

Practice Chapter 09 Financial Management Worksheets for Class 12 Business Studies

Navigate directly to the printable exercises for Chapter 09 Financial Management using the digital viewer below. Each practice set allows students to isolate specific topics for thorough review and uninterrupted practice alongside standard textbooks.

 FINANCIAL MARKETS
 
1 What is a capital market?
 
2 A public Ltd. Co. achieved the minimum subscriptions by (private placement). Whose interest has been ignored here?
 
3 What do you mean by price rigging?
 
4 Explain the term ‘insider trading’.
 
5 Reshu’s father has gifted her shares of a large cement company, with which he had been
working. The securities were in physical form. She already has a bank account and does not
possess any other forms of securities. She wished to sell the shares and approached a
registered broker for the purpose.
Mention one mandatory detail which she will have to provide with the broker.
 
6 Name the major participants of money market.
 
7 Saqib Ltd. is a large credit worthy company operating in the Kashmir Valley. It is an export oriented unit, dealing in exclusive embroidered shawls. The floods in the Valley have created many problems for the company. Many craftsmen and workers have been dislocated and raw material has been destroyed. The firm is therefore, unable to get an uninterrupted supply of raw material, and the duration of the production cycle has also increased. To add to the problems of the organisation, the suppliers of raw material who were earlier selling on credit are asking the company, for advance payment or cash payment on delivery. The company is facing a liquidity crisis. The CEO of the company feels that taking a bank loan is the only option with the company to meet its short term shortage of cash.
As a finance manager of the company name and explain the alternative to bank borrowing that the company can use to resolve the crisis.
 
8 “Money market is essentially a market for short-term funds‟. In the light of this statement, state the features of money market.
 
9 What is meant by ‘primary market’?
 
10 “A financial market is for the creation and exchange of financial assets.” Explain the functions.
 
11 What is meant by ‘Rights Issue’?
 
12 All commercial banks have to maintain a minimum cash balance which is known as Cash Reserve Ratio. Amount of fund available with commercial banks to be given as loans increases or decreases whenever RBI changes the CRR. In order to maintain the CRR, all banks borrow from each other on which interest rate is also paid by the respective banks.
(a) Which money market investment is discussed above?
(b) Give the term for interest rate on money borrowed by the banks from each other. Does it remain fixed?
(c) If interest rate given above rises, then what will happen to other sources of finance such as commercial paper and certificate of deposit? Is there any relation between them?
 
13 What does ‘dematerialization of securities’ refer to?
 
14 What is SEBI and state its objectives.
 
15 Define a stock exchange or a secondary market. Distinguish between primary and secondary market.
 
16 K.G. Software Ltd. is a reputed name in the market for the last ten years. Now, it wants to set up new projects for expansion and modernization of existing projects. For this purpose, it is opting for two different methods of floating new issues.
Firstly, securities are sold to issuing houses or stock brokers at an agreed price which they resell to the investing public.
 
Secondly, one share is offered against five shares (which share holders already posses) to the existing share holders. This is a privilege given to them.
(a) In which type of capital market the above issue of securities is covered?
(b) Give the name of methods used for issue of securities by K.G. Software Ltd.
(c) Mention the essential function of the market indicated here.
(d) Who are the investors in this market?
(e) List two more methods of issuing securities in this market.
 
17 Explain the procedure of trading in the stock exchange.
 
18 State any three objectives of National stock exchange.
 
19 ‘Ganesh Steel Ltd.’ is a large and credit-worthy company manufacturing steel for the Indian market. It now wants to cater to the Asian market and decided to invest in new hi-tech machines. Since the investment is large, it requires long-term finance. It decides to raise funds by issuing equity shares. The issue of equity shares involves huge floatation cost. To meet the expenses of floatation cost the company decides to tap the money-market.
(a) Name and explain the money-market instrument the company can use for the above purpose.
(b) What is the duration for which the company can get funds through this instrument?
(c) State any other purpose for which this instrument can be used.
 
20 Explain ‘money market’.
 
21 What are the benefits derived from ’demutualization’ of stock exchanges?
 
22 “A stock market index is a barometer of market behaviors”. Why?


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Chapter 09 Financial Management Practice Sheet and Solutions for Class 12 Business Studies

CBSE Practice Material: Class 12 Business Studies Chapter 09 Financial Management

Access structured practice worksheets for Chapter 09 Financial Management designed in alignment with the latest CBSE curriculum for Class 12 Business Studies. These printable problem sets help students build accuracy and prepare effectively for school tests.

NCERT-Aligned Questions and Solutions

Each worksheet is structured around standard CBSE textbooks, allowing students to check their working steps and correct mistakes early in their revision.

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Are these Business Studies Class 12 worksheets based on the 2026-27 competency-based pattern?

Yes, our CBSE Class 12 Business Studies Financial Management Worksheet Set 08 includes a variety of questions like Case-based studies, Assertion-Reasoning, and MCQs as per the 50% competency-based weightage in the latest curriculum for Class 12.

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Yes, we have provided detailed solutions for CBSE Class 12 Business Studies Financial Management Worksheet Set 08 to help Class 12 and follow the official CBSE marking scheme.

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Daily practice with these Business Studies worksheets helps in identifying understanding gaps. It also improves question solving speed and ensures that Class 12 students get more marks in CBSE exams.

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