BUSINESS FINANCE CHAPTER 1

A Chief Executive Officer (CEO) or President oversees the company’s

operation and act as a representative of a company in various

activities.

• TRUE

• FALSE

• MAYBE

In the attempt of maximizing the wealth of the business firm, a

financial manager’s decisions must include planning, acquiring, and

utilizing of funds involving its risk and return impact.

• TRUE

• FALSE

• MAYBE

A VP for Marketing has a function that is associated with the finance

activity of the firm.

• TRUE

• FALSE

• MAYBE

A Working Capital refers to a firm’s long-term assets and its long-term

liabilities, that deals with the day to day operations of the company.

• TRUE

• FALSE

• MAYBE

Managing the firm’s working capital to ensure a sufficient funds for its

continuous operation and to avoid costly disruptions is known as an

Investment Decision of a Finance Manager.

• TRUE

• FALSE

• MAYBE

The Dividend Policy as one of the financial decisions, deals with

identifying the optimal dividend distribution to be issued to owners,

the rate of payments made, and the amount retained for the firm.

• TRUE

• FALSE

• MAYBE

Among the responsibility of a VP for Production is to ensure that

customer’s demands and production meet.

• TRUE

• FALSE

• MAYBE

A VP for Finance deals with the selling, promotion, and distribution of

a product.

• TRUE

• FALSE

• MAYBE

VP for Finance or the Financial Manager has the responsibility to

determine an appropriate mix of debt and equity of an organization

• TRUE

• FALSE

• MAYBE

A financial decision that deals with level of inventories, cash and

securities to be maintained on hand; the credit policy to be offered to

customers, and mode of payment when purchasing raw materials or

merchandise is an operating decision of a finance manager

• TRUE

• FALSE

• MAYBE