Business Finance Pre-Test

Every person in involved in finance.

• True

• False

You should review your personal financial plan at least once a year, and perhaps more often based on your personal situation.

• True

• False

Only deposit institutions can make loans to consumers for home mortgages.

• True

• False

Sources of funds refers to the inflow of cash to a company, "use of funds" refers to the outflow of money by a company.

• True

• False

It is never advisable to create a financial plan on your own; always hire a professional financial planner to help you with this task.

• True

• False

Government plays a significant role in every economic system.

• True

• False

The availability of resources limits the supply of products and services.

• True

• False

One major advantage of a partnership is that the partners are not personally liable for any of the business' debts.

• True

• False

Over the past 20 years, U.S. business investments in other countries has sharply decreased.

• True

• False

If a small business does not eventually grow into a large business, it must be considered a failure.

• True

• False