MID-TERM TEST 4 (FINANCE AND BANKING)

Complete following sentence with the correct form of the word in parentheses:

One of the essential primary types of financial management (DECIDE) _______ is to build and increase the valuation of an organization.

Complete the following sentence with the correct form of the word in parentheses:

For additional funds to be procured, a company has many (CHOOSE) __________ such as: the issue of shares and debentures, loans to be taken from banks and financial institutions and public deposits to be drawn like in form of bonds.

Complete the following sentence with the correct form of the word in parentheses:

Investment decision not only involves allocating capital to long term assets but also involves decisions of using funds which are obtained by selling those assets which become less profitable and less (PRODUCE) __________.

Complete the following sentence with the correct form of the word in parentheses:

Capital (INVEST) __________ is also one of the main functions of financial management notes.

The market price of a share of common stock is determined by__________.

• the board of directors of the firm

• the stock exchange on which the stock is listed

• the president of the company

• individuals buying and selling the stock

The potential benefits an individual, investor, or business misses out on when choosing one alternative over another.

• opportunity costs

• gross profit

• net asset value

• interest rate

While a _________  income statement gives an idea of the annual plan to be placed for the next year, monthly and quarterly reports can make it easier for a short term change in strategy.

• yearly

• monthly

• daily

• weekly

To take money that has to be repaid is, on the contrary, to ________.

• borrow

• lend

• steal

• deposit

Companies generally use _________ to issue new shares or bonds for them.

       

• central banks

• investment banks

• commercial banks  

• retail banks

Quality financial management offers many benefits to you as a business owner. Financial management _________ bookkeeping, projections, financial statements and financing.

• include

• includes

• consist of

• contain