Topic 1: Intro to Financial Management

Which of the following legal forms of organization is most expensive to organize?

• Sole proprietorships.

• Partnerships.

• Corporations.

• Limited partnership.

The primary goal of the financial manager is

• minimizing risk.

• maximizing profit.

• maximizing wealth.

• minimizing return.

A more recent issue that is causing major problems in the business community is

• the privatization of ownership.

• short-term versus long-term financial goals of

• management.

• ethical problems.

The ________ provides a financial summary of the firm's operating results during a specified period.

• income statement

• balance sheet

• statement of cash flows

• statement of retained earnings

Financial management refer to study and practice of money related decisions within a firm.

• True

• False

Below are the importance of financial management except:

• Planning and controlling financial resources

• Allow better communication among department

• To guide proper financial decision making

• Help to promote product

The ______ is created by a financial relationship between suppliers and users of short-term funds.

• financial market
• money market
• stock market
• capital market

Long-term debt instruments used by both government and business are known as ____________.

• bills
• bonds
• stocks
• equities

"Don't put all your eggs in one basket" is investment advice related most directly to:

• liquidity

• safety

• growth

• diversification

The gain or loss that results from an investment over a specified period of time is known as ________.

• risk
• return
• uncertainty
• expected value