MID-TERM TEST 5 (BANKING AND FINANCE)

The more widely accepted point of view is that financial management includes the procurement of funds and their effective (UTILIZE) (a)   . For example, in the case of a manufacturing company, financial management must ensure that funds are available for installing the production plant and machinery.

Instead of (FOCUS) (a)   on lending, investment banks make money through investing either their own money or a client's money. For example, an investment bank may help clients with mergers and acquisitions, or help a private company go public through an initial public offering.

There are three critical parts of a company's financial statements: the balance sheet, the income statement, and the cash flow statement. The balance sheet gives a one-time snapshot of a company's assets and liabilities. The income statement indicates the business's (PROFIT) (a)   during a certain period.

Debt financing comes as bond issues, while equity comes from retained earnings or as a _________.

• share

• shareholder

• stockholder

• stock

An amount of money lent is a ________.

• debit

• debt

• loan

• payment

All the money received by a person or a company is known as ________.

• aid

• income

• wages

• salary

In simple words, banking can be defined _________ the business activity of accepting and safeguarding money owned by other individuals and entities, and then lending out this money in order to earn a profit.

• as

• so

• for

• in

A document that shows a company's profit or loss in a particular period of time.

• revenue

• income statement

• book value

• investment

In a developed market, most businesses can raise capital easily. However, the real problem is the efficient __________ of the capital through effective financial planning and control.

• utilization

• utilize

• using

• spending

A schedule of how much producers are willing and able to produce and sell at a price.

• profit

• services

• supply

• demand