EMERGING CONCEPT OF BUSINESS FINANCE

_______ is an entity, in which the skills, energy and enterprise of owners and partners are linked with money, its sources and investment, and its success is measured by wealth or profit the business gets (Jones, 1994).

• Business

• Capital

• Profit

• Company

Finance studies money and its management.

Similar to economics, it explores the allocation of resources.

• Both statement are false

• Both statement are true.

• First statement is true.

• Second statement is true.

Which of the following is NOT a primary concern of financial institutions?

• • Creating financial assets

• Managing investment portfolios

• • Trading securities in markets

• Regulating financial markets

How do financial institutions facilitate the transfer of funds in the economy?

• They provide loans to individuals only.

• They connect savers with borrowers.

• They invest directly in businesses.

• They create new money.

What is the main focus of the study of investments?

• Analyzing financial institutions

• Managing corporate finances

• Understanding the role of financial regulations

• Selecting individual assets and building investment portfolios

According to the passage, what factors can influence investor decisions?

• Only the performance of individual assets

• Taxation and public financial information

• The size and location of a business

• The skills and experience of the entrepreneur

What is a primary responsibility of a corporate financial manager?

• Developing marketing strategies

• Managing employee relations

• Researching and developing new products

• Ensuring the company can meet its financial obligations

What is a key element for a business to be successful in the finance function?

• Having a large office with expensive furniture.

• Hiring the most talkative employees for the finance team.

• Printing out unnecessary financial reports every day.

• Obtaining money from the right sources and investing it in the right places.

What are some examples of assets a business might need to pay for? (Choose two)

• Strong work ethic of employees

• Delicious snacks for the breakroom.

• Brand recognition and reputation

• Comfortable office chairs.

What are some broad areas within business finance? (Choose two)

• Corporate Finance

• Marketing and Sales

• Human Resources Management

• Financial Institutions and Markets