Business Finance

What is the purpose of financial planning?

• To forecast future cash flows
• To ensure the sustainability of the business
• To create a budget
• To maximize profits

Which of the following is a form of debt financing?

• Equity financing
• Venture capital
• Bonds
• Loans

What is the main goal of financial management?

• To minimize losses
• To maximize profits
• To ensure the sustainability of the business
• To create a budget

What type of financial instrument is a stock?

• Debt
• Equity
• Derivative
• Mutual fund

What is the difference between a debt and an equity instrument?

• A debt instrument is a claim against future earnings, while an equity instrument is a claim against current assets
• A debt instrument is a claim against current assets, while an equity instrument is a claim against future earnings
• A debt instrument is a claim against current assets, while an equity instrument is a claim against future assets
• A debt instrument is a claim against future assets, while an equity instrument is a claim against current assets

What is the purpose of a budget?

• To monitor cash flows
• To forecast future cash flows
• To maximize profits
• To allocate resources

What is the goal of risk management?

• To minimize losses
• To maximize profits
• To reduce uncertainty
• To increase efficiency

What type of financial instrument is a bond?

• Equity
• Derivative
• Mutual fund
• Debt

What is the purpose of financial analysis?

• To evaluate the performance of a business
• To forecast future cash flows
• To allocate resources
• To reduce uncertainty

What is the purpose of capital budgeting?

• To evaluate the performance of a business
• To forecast future cash flows
• To allocate resources
• To assess the risk of potential investments