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Finance Quiz 1

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

The ______ is created by a financial relationship between suppliers and users of short-term funds.

a)

financial market

b)

money market

c)

stock market

d)

capital market

2.

Firms that require funds from external sources can obtain them from _____.

a)

financial markets

b)

private placement

c)

financial institutions

d)

All of the above

3.

The major securities traded in the capital markets are ____.

a)

stocks and bonds

b)

bonds and commercial paper.

c)

commercial paper and Treasury bills

d)

Treasury bills and certificates of deposit

4.

The primary goal of the financial manager is

a)

minimizing risk

b)

maximizing profit

c)

maximizing wealth

d)

minimizing return

5.

Corporate owner's receive realizable return through _____________

a)

earnings per share and cash dividends

b)

increase in share price and cash dividends

c)

increase in share price and earnings per share

d)

profit and earnings per share

6.

The wealth of the owners of a corporation is represented by

a)

profits

b)

earnings per share

c)

share value

d)

cash flow

7.

Financial managers evaluating decision alternatives or potential actions must consider

a)

only risk

b)

only return

c)

both risk and return

d)

risk,return and the impact of share price

8.

Profit maximization fails because it ignores all EXCEPT

a)

the timing of returns

b)

earnings per share

c)

cash flows available to stockholders

d)

risk

9.

Long-term debt instruments used by both government and business are known as

a)

bonds

b)

equities

c)

stocks

d)

bills

10.

Which of the following is not a financial institution?

a)

A pension fund

b)

A newspaper Publication

c)

An Insurance Company

d)

A Commercial Bank