BF21 Unit 1 Practice Test

Which are examples of deposit-taking financial institutions?

• commercial banks, credit unions, and brokerages 

• commercial banks, corporations, and mutual savings banks

• credit unions, savings and loan associations, and commercial banks

• savings and loan associations, mutual savings banks, and insurance

  firms

Which is an example of a non-deposit financial institution?

• credit union

• mortgage bank

• mutual savings bank

• commercial bank

Which is a measure of how well a business generates cash flow?

• accounts receivable

• accounts payable

• capital structure

• return on capital

The goals of the finance function are to ensure profitability and to:

• reduce risks.

• advertise products.

• give out information.

• manufacture raw materials.

Determining which projects a business should invest in is known as:

• return on capital.

• capital budgeting.

• capital structuring.

• the cash conversion cycle.

Julie, a newly promoted manager, lacks the time to properly prepare

employee work schedules and assigns this duty to the assistant manager.

Which time management technique is Julie using?

• delegating activities

• standardizing tasks

• setting objectives

• procrastinating

An institution that combines the elements of a bureaucracy with those of

a private company is called a:

• private company

• semi-government

• franchise business

• government institution

Which reason is invalid for the faster-than-average employment growth of

financial analysts and personal financial advisors?

• Generally speaking, the U.S. population is better educated.

• Globalization of the securities markets makes investing more

  complicated.

• A large segment of the population, namely baby boomers, is facing

  retirement.

• Generally speaking, the U.S. population is in a worse financial state

  than before.

When Alana prepares a report so that all financial data is clearly

disclosed, she is ensuring that the information is:

• flexible

• relevant

• timely

• transparent

An amount of money that a business owes to someone else is referred to

as:

• equity

• an asset

• accounts payable

• balance