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NCERT Solutions for Class 12 Business Studies Chapter-9

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Class 12 NCERT Solutions Business Studies - Financial Management - Free PDF Download

NCERT Solutions Class 12 Chapter 9 is to the point prepared solutions to the NCERT textbooks problems. These solutions are designed to prepare the students to score the best in their tests or exams. Our NCERT solutions explain the entire chapter to students in a systematic manner and boost the confidence of the students. Even if a student has never read the chapter, he/ she can go through these NCERT solutions and can become exam ready in a few minutes of reading.


NCERT Solutions Class 12 Chapter 9 is prepared by our subject matter experts in a very meticulous manner keeping all aspects in mind like the weightage, pattern, trend of exams, etc. in mind.


Presentation of an answer is also an important area to be considered to score well in Board exams thus going through these solutions students get an idea of how an answer should be written and what style must be followed to score better.

NCERT Solutions for Class 12 Business Studies Chapter 9 Financial Management part-1
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FAQ (Frequently Asked Questions)

Q1. What are the Objectives of Financial Management?

Ans: Financial management refers to the balance between procured finance and the usage of finance.


Some of the objectives of financial management are-

  • Financial management is done to maximize the shareholder's wealth. This is also known as the wealth maximization concept.

  • Decisions made must add value and must be efficient. Market value should increase with each decision.

  • To maximize the current price of equity shares of the company financial decisions are made.

  • Financial decisions are taken to increase the wealth of the company.

Q2.What are the Factors that Affect Financial Decisions?

Ans: Financial decisions are affected by various factors. Important factors are-

  • Cost - To have a good financial decision the source of funds should be cheaper. Different sources have different costs of raising.

  • Risk - This is also an important factor that will determine whether a financial decision was good or bad. With different sources, different risks are associated.

  • Floatation cost - The source becomes less attractive if the floatation cost increases.

  • Cash flow position of the company - Cash flow determines financing and funding.

  • Fixed operating cost - If the operating cost the financing cost decreases. Low debt is favourable for the company.

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