DAT5A DPB5043 QUIZ 1 DEC2020

The most important goal of a company is to __________.

• reduce costs and expenses.

• increase profits.

• increase sales revenues.

• increase the market price of the company's common stock.

Shareholder's wealth maximization ________________.

• is a short-term perspective.

• ignores the time value of money.

• considers risk and uncertainty.

• all of the above,

The role of the _______________ is to actively manage the firm's current assets and liabilities with the goal of maximizing shareholder's wealth.

• investor

• financial market

• financial manager

• regulator

In finance, the primary goal of the firm is to maximize the market price of the firm's assets.

• TRUE

• FALSE

An example of a financial institution is Employees Provident Fund.

• TRUE

• FALSE

Shareholder's wealth maximization considers timing of returns and risk.

• TRUE

• FALSE

A primary market is defined as a market where new securities are bought and sold for the first time.

• TRUE

• FALSE