Business Finance and Marketing Quiz

1.What is the primary goal of financial management?

• Minimize costs
• Increase employee satisfaction
• Maximize shareholder wealth
• Expand market share

Which financial statement provides a snapshot of a company's financial position at a specific point in time?

• Balance Sheet
• Cash Flow Statement
• Income Statement
• Profit and Loss Statement

What does the term "liquidity" refer to in finance?

• Liquidity refers to the total value of assets held by a company.
• Liquidity refers to the ability to borrow money from a bank.
• Liquidity refers to the profit margin of a business.
• Liquidity refers to the ease of buying or selling an asset without affecting its price.

4.What is the formula for calculating the current ratio?

• Current Assets * Current Liabilities
• Current Assets - Current Liabilities
• Fixed Assets / Current Liabilities
• Current Assets / Current Liabilities

5.Which of the following is a primary market transaction?

• Private placement
• Initial public offering (IPO)

• Secondary market transaction
• Merger and acquisition

6.What is the time value of money concept based on?

• The time value of money concept is based on the idea that inflation does not impact the value of money.
• The time value of money concept is based on the idea that a dollar today is worth more than a dollar in the future.
• The time value of money concept is based on the idea that money has a fixed value over time.
• The time value of money concept is based on the idea that a dollar today is worth less than a dollar in the future.

7.Which of the following represents a company's profitability?

• Operating expenses
• Gross revenue
• Cash flow from financing activities
• Net income or profit margin

8.What is a bond's coupon rate?

• The coupon rate is the total return on a bond.
• The coupon rate is the price at which a bond is issued.
• The coupon rate is the maturity date of a bond.
• The coupon rate is the interest rate paid on a bond's face value.

9.What does "diversification" mean in the context of investment?

• Spreading investment across different assets to reduce risk.
• Putting money in a savings account only
• Investing all money in a single asset
• Ignoring market trends and fluctuations

10.What does "capital structure" refer to?

• Total revenue generated
• Combination of assets and liabilities
• Number of employees
• Combination of equity and debt