Finance Quiz

Among the objectives of personal finance is to:

• decide on the dividend paid to stockholder

• produce a new product

• choose the best investment in maximizing the wealth of stockholder

• get better return in investment

Dividend decisions are concerned with:

• Determining the optimal capital structure

• Allocating funds for capital projects

• Deciding on the distribution of profits to shareholders

• Managing the day-to-day cash flows of the business

What is the primary focus of the financing decision in a business context?

• The determination of the amount and timing of dividend payments to shareholders.

• The selection of long-term investment projects that align with a company's strategic objectives and financial goals.

• The decision of how to allocate funds towards various investment opportunities.

• The process of determining the most appropriate sources of funds to finance a company's operations and projects.

Which of the following best defines finance?

• The process of producing goods and services

• The study of physical assets

• The study of how individuals and businesses manage their money

• The process of marketing products to consumers

What is the primary difference between profit and cash flow?

• ) Profit represents the total revenue generated by a business, while cash flow represents the total expenses incurred.

• Profit represents the amount of money a business has left after deducting expenses from revenue, while cash flow represents the movement of money in and out of a business.

• Profit represents the total assets of a business, while cash flow represents the liabilities.

• Profit represents the financial health of a business, while cash flow represents the operational efficiency.

Which of the following is not a type of financial decision?

• Capital decisions

• Dividend decisions

• Investment decisions

• Financing decisions

What is the primary objective of financial decision-making?

• Maximizing market share

• Maximizing shareholder wealth

• Maximizing employee satisfaction

• Maximizing social responsibility

What does the term 'diversification' refer to in finance?

• Investing in different types of assets to reduce risk

• Investing only in one type of asset to maximize returns

• Investing in high-risk assets to maximize profits

• Investing in assets with low liquidity

Which financial decision-making area involves determining the best sources and mix of funds for a company's operations?

• Investment decisions

• Financing decisions

• Capital budgeting decisions

• Management decisions

Madam Sih hold a degree in

• Finance

• Accounting

• Business

• Economics