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) _________. 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) _________ 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) _________ 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