CH- 1 Introduction to Business Finance

Multiple Choice

what is business finance?

• Business with higher profit

• Buying and selling activities

• Deposit money in bank earn from business

• Management of money in any type of business

Multiple Choice

which is not a basic area of finance?

• Capital market and Investment

• institutional finance

• Software development

• Public finance

Multiple Choice

Managerial finance functions done by:

• Shareholders

• lower level of staff

• Managerial level staff

• Finance teacher

Multiple Choice

Investment decision is the decision related to

• investment of time

• use of funds in long term investment alternative

• use of fix assets in long term

• none of them

Multiple Choice

Financing decision is the decision related to

• finance

• selling of goods and services

• collecting cash from credit sales

• raising funds for investment from different source

Multiple Choice

Dividend decision is the decision related to

• Distribution of Total Assets

• Distribution of profit

• Distribution of sales

• Distribution of cash balance

Multiple Choice

Working capital decision is the decision related to

• management of work

• Management of company

• Management of fixed assets and long term debt

• management of current asset and liabilities

Multiple Choice

Routine finance function is done by

• CEO

• Top level of staff

• Lower level of staff

• DI

Multiple Choice

Profit maximization goal is totally concerned with

• maximizing customer

• maximizing profit

• maximizing sales

• maximizing net present value

Multiple Choice

wealth maximization goal is concerned with

• higher NPV or value of share

• Higher level of profit

• higher level sales

• higher level of fixed assets

Multiple Choice

Profit maximization goal is better than wealth maximization goal.

• True

• False

Multiple Choice

share holders wealth maximization goal

• is not clear

• consider time value of money

• does not consider quality of benefit

• increase conflict of interest

Multiple Choice

Full form of CEO

• Chief executive officer

• Chief entertainment officer

• clear excited order

• central executive office