Principle of Finance (EFN)

Q1. Finance is concerned with the process institutions, markets, and instruments involved in the transfer of money among and between individuals, businesses and government.

• True

• False

The board of directors is responsible for managing day‑to‑day operations and carrying out the policies established by the chief executive officer.

• True

• False

Which of the following would be considered an advantage of the SOLE PROPRIETORSHIP form of business organization?

• unlimited life

• Lower income taxes

• wide access to capital

• pooled expertise

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

• bonds

• stocks

• equities

• bills

The major securities traded in the capital markets are ____.

• stocks and bonds

• commercial paper and Treasury bills

• bonds and commercial paper.

• Treasury bills and certificates of deposit

The primary goal of a publicly-owned corporation should be to:

• minimizing risk

• maximizing shareholders' wealth

• maximizing profit

• minimizing market share

The analysis and process of choosing securities and other assets to purchase

• Property

• Investments

• Financial management

• Real Assets

The organisations that facilitate the flow of capital between investors and companies → financial institutions and markets

• True

• False

The study of how people and businesses evaluate investments and raise capital to fund them

• What is finance

• Types of business organization

• Principles of finance

• Why study finance

What is finance → To make good decisions in both the corporate world and personal lives

• True

• False