Finance and Investments Open Stax Chapter 1 Multiple Choice Revi

Which of the following was NOT identified by your authors as one of the three main areas of financial study?

• business finance

• capital budgeting

• investments

• financial markets and institutions

What is the process of determining which long-term or fixed assets to acquire in an effort to maximize shareholder value?

• Business finance

• Capital budgeting

• Investments

• Financial markets and institutions

In an organization with each of these financial positions, which title is most likely to be associated with a job description that is less of a “hands-on” manager and that engages more in visionary and strategic planning?

• comptroller (or controller)

• treasurer

• vice president of finance

• chief financial officer (CFO)

Which of the following statements is false?

• Financial planning is an important tool of for-profit organizations such as corporations and partnerships but is not important for not-for-profit enterprises such charitable organizations or governments.

• Good financial planning considers past, present, and pro forma income statements.

• Balance sheets are critical elements of the financial planning process and help demonstrate expected sources and uses of funds.

• Forecasting in the form of expected sales, cost of funds, and micro- and macroeconomic conditions are essential elements of financial planning.

Which of the following statements regarding data is generally NOT true?

• Financial data is important for internal and external analysis of business firms.

• Outsiders use publicly available data about firms to make investment and regulatory decisions.

• “Gut feelings” decision-making tends to be more consistent with value maximization.

• Suppliers need financial information to determine if they should supply trade credit, and customers need to know if a firm’s products are reliable and appropriately priced.

Which of the following is generally NOT true about cloud data storage versus on-site data storage?

• Cloud data storage provides storage cost advantages.

• Cloud data storage causes increased energy consumption.

• Cloud data storage comes with specialized data protection services.

• Cloud data storage comes with specialized maintenance services.

Which of the following describes United States Bureau of Labor Statistics (BLS) expectations of jobs using financial skills in the next decade?

• plentiful but low paying

• few and low paying

• plentiful and high paying

• few and high paying

Which of the following organizations would be unlikely to hire a financial analyst?

• Government agencies may hire financial analysts to aid in regulatory oversight and enforcement.

• Investment companies may hire financial analysts to produce financial reports.

• Corporations may hire financial analysts to develop financial forecasts.

• All of the above organizations are likely to hire and develop financial analysts.

The _______________ market is the market for _______________ securities, and the _______________ is the market for _______________ securities.

• primary; used; secondary; new

• primary; new; secondary; used

• secondary; new; primary; new

• secondary; used; primary; used

_______________ own the securities that they buy or sell; when they engage in a financial transaction, they are trading from their own portfolio.

• Dealers

• Brokers

• Advisers

• Comptrollers