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WorksheetsBusiness Finance Quarter 2
Total questions: 35
Worksheet time: 45mins
It is defined as money which is committed with an intention to earn a return over a period of time.
Time Deposit
Investment
Bank deposit
Bonds
An investment that is made up of a pool of funds collected from many investors for the purpose of investing in stocks, bonds, and similar assets.
Stocks
Mutual Funds
Real Estate
Insurance
A contract (policy) in which an individual or entity receives financial protection or reimbursement against losses from an insurance company.
Stocks
Mutual Funds
Real Estate
Insurance
Money placed into a banking institution for safekeeping
Insurance
Bank Deposit
Mutual Funds
Bonds
A depth Security issued by the government that have maturities of one year or less.
Investment
Inflation
Treasury Bills
Diversification
This is the general increase in prices.
Investment
Inflation
Treasury Bills
Diversification
How price of an asset moves with respect to another asset.
Diversification
Inflation
Dividends
Correlation
The following are different types of investments EXCEPT:
Fixed Income and Equity
Alternatives to Fixed Income and Equity
Unit Investment Trust Fund
Other Investment assets
Statement I – Corporate bonds are long-term debt instruments issued by corporations.
Statement II – Just like time deposits, bonds can also be pre-terminated by the investor.
Only statement I is true
Only statement II is False
Statement I and II are True
Statement I and II are False
It is a property consisting of land and any improvements on it.
Stocks
Mutual Funds
Real Estate
Insurance
It is the process of identification, analysis and acceptance or mitigation of uncertainty in investment decisions.
Business Risk
Financial Risk
Risk management
Investment Risk
___________ refers to the risk created by the choice of capital structure – the financing mix of the issuing company. A company usually funds its operation through debt and equity financing. As the dept portion increases, it is also increasing.
Business Risk
Financial Risk
Risk management
Investment Risk
These are the steps to minimize or reduce investment risk.
Measure risk – Examine Solutions – Implement solutions – Monitor results – Identify Risk
Identify risks - Measure Risks – Monitor Results – Examine Solutions - Implement Solutions
Identify Risks – Measure Risks – Examine Solutions – Implement Solutions – Monitor Results
Identify Risks – Measure Risks – Implement solutions – Examine Solutions – Monitor Results
This one of the steps to reduce investment risk which determine whether the initiatives are effective and whether changes or update are required.
Identify Risk
Examine Solutions
Implement Solutions
Monito Result
What is the mean returns of stock X based on the returns of the 5-year below.
2015-15.25%
2016-18.50%
2017-13.20%
2018-11.26%
2019-17.46%
79.46%
16.89%
15.89%
15.79%
____________ exists if the investment is denominated in another currency different from that of the local currency of the investor.
Currency Risk
Financial Risk
Country Risk
Exchange Rate Risk
What is the variance of returns of Stock X based on the returns of the 5-year below.
2015-15.25%
2016-18.50%
2017-13.20%
2018-11.26%
2019-17.46%
0.001492
0.004921
0.0012491
0.001294
Computing the variance involves the following steps:
Get the mean – Get the squared difference – add the squared difference – get the difference of each return and the mean – divide by the number of periods
Get the mean – get the difference of each return and the mean - Get the squared difference – add the squared difference – divide by the number of periods
Get the mean – get the difference of each return and the mean - Get the squared difference – divide by the number of periods – add the squared difference
Get the mean – get the difference of each return and the mean - add the squared difference – divide by the number of periods
What is the first step in getting your personal finances under control?
Determine your needs and wants
Know the time value of money
Determine and list your assets, liabilities and expenses
Insure your needs
Every Individual should practice this philosophy to achieve their set goals and objectives. One must learn to practice it properly account one’s resources.
Financial Planning
Money management
Investment
Personal Finance Decisions
Who is the top 1 successful businessman who had accurately managed his personal expenses therefore he will be able to increase his net worth and become the most successful people in our time with the net worth of $14.4 B.
Henry Sy
John Gokongwei, Jr.
Andrew Tan
Lucio Tan
Spending Money, time or items toward future benefits for making more money is called ______.
paying off
borrowing
investing
saving
It is the term for the money that you earn.
expense
income
savings
interest
Kurt Gabriel is in 5th grade. His dream is to be a lawyer one day. This is a __________.
savings
investment
short-term goal
long-term goal
John Paul started a college fund for his daughter when she was born. Each month he transfers P5,000 from his checking account to the fund. By doing this, he is both ______ and ______.
spending and saving
saving and investing
saving and borrowing
investing and borrowing
Agreement to receive cash, goods, or services now and pay for them later is _________.
income
savings
credit
investment
The term for the second-best choice or alternative a person gives up getting something else is ________.
budget
investment
opportunity cost
need
Statement I – Buying clothes for sale is spending.
Statement II – Selling used clothes is earning.
Only statement I is true
Only statement II is false
Statement I and II are True
Statement I and II are False
Statement I – Investing is the process of placing our money in a bank through savings account.
Statement II – Setting an emergency fund in the bank is considered investing.
Only statement I is true
Only statement II is false
Statement I and II are True
Statement I and II are False
Statement I – Earning money can be through buying and selling real properties.
Statement II – Cutting cost in business is considered investing.
Only statement I is true
Only statement II is true
Statement I and II are True
Statement I and II are False
Each day after school, Kelly has volleyball. She could spend that time babysitting for extra cash. Babysitting is her _______.
budget
investment
Opportunity cost
short-term goal
All of these are forms of cash.
Checks, credit cards and coins
Credit cards, checks and debit cards
Currency, checks and debit cards
Currency, coins and credit cards
Who is most likely to have high finance charges?
an individual who pays on time.
A person who pays off credit card balances each month.
A person with a bad credit history and a lot of debt.
A customer who pays bills online.
A store is offering 10% off for customers who use their store card. This is an example of making purchases using ___________.
credit
cash
currency
Debit
Ruth earns P30,000 a month. Her expenses per month are as follows:
Food- P2,000 Travel Fund- P1,500
Rent- P4,000 Utilities- P3,000
Load- P1,000
How much can Ruth allocate for her insurances and savings?
P12,000 exclude beauty products
P21,000 exclude load and travel fund
P21,000 include load and travel fund
P24,000 exclude food and rent
