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Finance

Total questions: 25

Worksheet time: 13mins

Name
Class
Date
1.

A financial institution fails to comply with an important government regulation. The financial institution will most likely...

a)

pay a fine

b)

get a better reputation

c)

gain new business

d)

avoid an audit

2.

One benefit of using technology in compliance is that technology is typically more __________ than maintaining manual compliance processes.

a)

time-consuming

b)

costly

c)

efficient

d)

error-prone

3.

Many nations have developed environmental regulations in order to encourage

a)

moral conduct

b)

ethical behavior

c)

conservation

d)

industrialization

4.

Joan borrowed $10,000 from a relative to start her own business. Assuming she takes all responsibility for the company's financial risks, the company is most likely a...

a)

sole proprietorship

b)

limited partnership

c)

corporation

d)

partnership

5.

An individual or business can minimize capital losses on investment property by

a)

liquidating remaining assets

b)

claiming the loss as a tax deduction

c)

obtaining a long-term loan

d)

renegotiating property insurance premiums

6.

The business manager tried to write a promotional letter that was simple, clear, and interesting so that customers who received it would

a)

easily understand it

b)

need to read it many times

c)

find it entertaining

d)

ask what it really meant

7.

What question should finance professionals ask to provide the appropriate types and levels of service to their clients?

a)

how can I mazimize my returns?

b)

should I follow up with the clients?

c)

what are the client's expectations?

d)

are my goals realistic and attainable?

8.

Customer Relationship Management (CRM) processes should support the basic steps of the __________ cycle.

a)

accounting

b)

customer life

c)

customer complaint

d)

business

9.

The most environmentally friendly way for producers to respond to limited natural resources is by

a)

tapping the resources

b)

conserving the resources

c)

decreasing prices

d)

increasing production

10.

What economic activity is necessary for consumption to occur?

a)

financing

b)

opportunity

c)

production

d)

management

11.

Gary believes that the upper class should pay a higher income tax rate than the middle and lower classes. What tax structure does Gary favor?

a)

progressive

b)

regressive

c)

proportional

d)

exclusive

12.

What often happens to businesses when interest rates rise?

a)

consumer demand increases

b)

output decreases

c)

profits increase

d)

cost of goods decreases

13.

The yen, peso, and euro are types of...

a)

bonds

b)

money

c)

stock

d)

dollars

14.

When reconciling your check register, it is important to __________ your balance.

a)

subtract your earned interest from

b)

add your debit card transactions to

c)

subtract all applicable fees from

d)

add ATM withdrawals to

15.

Which of the following securities is most likely to be bought and sold on a money market:

a)

short-term equity securities

b)

long-term equity securities

c)

short-term debt securities

d)

long-term debt securities

16.

Which of the following is most likely to have a negative effect on financial markets:

a)

interest rates fluctuate daily

b)

business expansion slows quickly

c)

unemployment rates stabilize steadily

d)

consumer spending increases consistently

17.

Which of the following is one of the main components of an income statement:

a)

assets

b)

revenue

c)

taxes

d)

liabilities

18.

When preparing a statement of equity, what does a business deduct from its total net income to obtain its retained earnings?

a)

dividends paid

b)

depreciation of assets

c)

sales tax payable

d)

bad debt

19.

One disadvantage of marginal analysis is that it does not account for

a)

outsourcing

b)

sunk costs

c)

qualitative factors

d)

labor costs

20.

The primary purpose of managerial accounting is to provide accurate data about a business's activities that help internal users

a)

control external factors

b)

make informed decisions

c)

obtain necessary loans

d)

understand corporate policies

21.

You want to have $8,000 in three years to purchase a car. You can earn 4% compound interest on your investment. How much should you invest today?

a)

$7,821.47

b)

$7,364.10

c)

$7,692.31

d)

$7,111.75

22.

Making employment information available to job seekers in many locations at the same time is one way that computer technology impacts

a)

organizational decision-making

b)

business development

c)

corporate communications

d)

human resources management

23.

When project managers prepare to-do lists and schedule activities, they are using __________ skills.

a)

information-based

b)

time-management

c)

creative-thinking

d)

problem-solving

24.

Lynnette works at Main Street Bank. Her primary job responsibility is to determine if the bank should lend funds to the bank's customers. Lynnette is working as a(n)

a)

collections officer

b)

credit analyst

c)

chartered financial consultant

d)

bank agent

25.

Corporate governance is primarily concerned with __________ desires.

a)

CEO's

b)

stakeholders'

c)

vendors'

d)

competitors'