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Business Finance
Business Finance
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Questions
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Answers
1
MC8. Who are considered the owners of the utility to whom the finance manager is maximize their value?
stockholders/investors
creditors
suppliers
board of directors
2
MC10. What do you call the capacity of goods and services to satisfy wants?
satisfaction of needs
utility or expected satisfaction
satisfaction capacity
delayed or undelayed satisfaction
3
T4. Personal finance involves the lending of money to individuals.
False
True
4
MC3. Who is the one responsible in making investment, financial and dividend policy making decision of a firm?
stockholder
creditor
employee
finance manager
5
T8. Accounting is a subset of finance.
True
False
6
T1. Private finance is concerned with the government spending and revenues and its general effect on the economy.
False
True
7
T5. Investment involves buying and selling of financial securities, the analysis making investment, and risk management.
True
False
8
MC5. The primary function of a financial intermediary is to transfer ___________.
new stock issues to buyers
saving to household
saving to borrowers
stock to brokers
9
T9. Personal finance deals primarily with the management of the finances of government.
True
False
10
T6. Non profit organizations are not required to report financial and operating information to the public to the SEC.
False
True
11
T7. When you save or invest your money you can instantly satisfy your wants.
True
False
12
T10. The Basic Accounting Equation is A= L + OE
True
False
13
T3. The financial manager, in a profit-seeking organization, primarily aims to maximize the owner's wealth.
False
True
14
MC6. The most important function of the finance manager is ___________.
none of the above
dividend policy decision
investment decision
financial decision
15
MC4. Which of the following is NOT a function of the financial manager?
making financial statement
making investment decision
making dividend policy decision
making financial decisions
16
MC1MC1. What should be the goal of a business?
maximization of accounting profit
maximize the owners wealth
maximization of sales
maximization of assets
17
MC2. Financial institution include:
banks
insurance companies
pension funds
all of the above
18
MC9. What do you call the concept buying other companies for the goal monopolizing businesses?
Merge
Good Will
Merger and Acquisition
Shareholders' Monopolization
19
T2. Public finance is subdivided into personal finance, nonprofit organizations, and business finance.
False
True
20
MC7. To accept or to reject a business proposal is a decision to be made by the finance manager under the function of ?
financing decision
all of the above
investment decision
dividend policy decision