Finopedia 2.0

What the Finance Department not do?

• Forecasting cash flow.
• Producing accounting information for managers.
• Hold Annual General Meetings.
• Take important decisions of finance.

1. Investment can be defined.

• Person’s dedication to purchasing a house or flat

• Use of capital on assets to receive returns

• Usage of money on a production process of products and services

• Net additions made to the nation’s capital stocks

A ________________ is a type of credit score created by the Fair Isaac Corporation. Lenders use borrowers' these scores along with other details on borrowers' credit reports to judge how much the borrower can be trusted to pay back money owed based on their payment history

• Debt

• Loan

• FICO score

• Net Income

The inability of a business to meet its fixed financial obligations, like payment of interest, is known as

• Business risk

• Financial risk

• Long-term risk

• Market risk

This decision is about the quantum of finance to be raised from various long-term sources.

• Investment decision

• Financing decision

• Dividend decision

• Capital budgeting decision

In a financial market, the price to borrow money is called the?

• Deposit

• Interest Rate

• Credit

• Cost

The formula to calculate future value.

• FV= (P+i)^n

• FV= P(1+i)^n/m

• FV= P(1+i)^n

• FV= P/(1+i)^n

Which of following does not a type of direct foreign investment?

• Franchising

• International trade

• Joint ventures

• Acquisition of existing operators

Purchase of treasury stock

• Investing Activities

• Financing Activites

• Operating Activities

The first step in implementing target pricing and target costing is

• choosing a target price

• determining a target cost.

• developing a product that satisfies needs of potential customers.

• performing value engineering