INTRODUCTION TO FINANCE

K: What is the meaning of finance?

• a) Study of money
• b) Study of sports
• c) Study of plants
• d) Study of history

What are the two main categories of finance?

• a) Public and private finance
• b) Micro and macro finance
• c) Short-term and long-term finance
• d) Profit and non-profit finance

Which of the following is not an objective of financial management?

• a) Profit maximization
• b) Wealth maximization
• c) Risk minimization
• d) Cost minimization

How does finance help businesses?

• a) By providing employees
• b) By providing technology
• c) By providing funds
• d) By providing office supplies

What is the relationship between finance and economics?

• a) Finance is a subset of economics
• b) Economics is a subset of finance
• c) Finance and economics are the same
• d) Finance and economics are not related

What is the nature of finance?

• a) Static
• b) Dynamic
• c) Neutral
• d) Emotional

What are the different types of financial statements?

• a) Income statement and cash flow statement
• b) Balance sheet and income statement
• c) Profit and loss statement and cash flow statement
• d) Balance sheet and profit and loss statement

What are the different sources of short-term finance?

• a) Bank loans and commercial papers
• b) Issuing bonds and equity shares
• c) Venture capital and private equity
• d) Government grants and subsidies

What are the different types of financial ratios used for analysis?

• a) Profitability ratios and liquidity ratios
• b) Income ratios and expense ratios
• c) Budget ratios and tax ratios
• d) Sales ratios and revenue ratios