Finance Quiz 1

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

• financial market

• money market

• stock market

• capital market

Firms that require funds from external sources can obtain them from _____.

• financial markets

• private placement

• financial institutions

• All of the above

The major securities traded in the capital markets are ____.

• stocks and bonds

• bonds and commercial paper.

• commercial paper and Treasury bills

• Treasury bills and certificates of deposit

The primary goal of the financial manager is

• minimizing risk

• maximizing profit

• maximizing wealth

• minimizing return

Corporate owner's receive realizable return through _____________

• earnings per share and cash dividends

• increase in share price and cash dividends

• increase in share price and earnings per share

• profit and earnings per share

The wealth of the owners of a corporation is represented by

• profits

• earnings per share

• share value

• cash flow

Financial managers evaluating decision alternatives or potential actions must consider

• only risk

• only return

• both risk and return

• risk,return and the impact of share price

Profit maximization fails because it ignores all EXCEPT

• the timing of returns

• earnings per share

• cash flows available to stockholders

• risk

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

• bonds

• equities

• stocks

• bills

Which of the following is not a financial institution?

• A pension fund

• A newspaper Publication

• An Insurance Company

• A Commercial Bank