Business Finance

A company's income before interest and taxes are applied is called?

• gross earnings

• net profit

• net income

• operating income

Planning of income and expenses to run a business for certain time frame in the future is called?

• Operating Budget

• Budget Analysis

• Forecasting

• Leveraging

When an asset loses value over time it is called?

• Salvage

• Net Loss

• Depreciation

• Dispose

The ease with which an investment can be turned into cash is?

• Solvency

• Exchange Rate

• Risk

• Liquidity

Walmart is a deposit institution.

• True

• False

What you give up when you make a choice is called?

• Opportunity Cost

• Law of Survival

• Deferment

• Best Choice

A rise in the general level of prices is called?

• Inflation

• Deflation

• Recession

• Regression

For a $329.92 loan for 2 years and a 11% interest rate?

• $72.58

• 72.58

What are the steps in the financial planning process?

• Determine your current situation

• Set financial goals

• Evaluate alternatives

• Create an action plan

• Review your progress

For a $199.56 loan for 2 years and a 8% interest rate?

• $31.93

• 31.93