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TUTORIAL A

Total questions: 25

Worksheet time: 19mins

Name
Class
Date
1.

Which of the following is NOT the decision function of financial management?

a)

Dividend Decision

b)

Financing Decision

c)

Investment Decision

d)

Administrative Decision

2.

The market where the investment instrument was mature within one year is:

a)

Secondary Market

b)

Primary Market

c)

Money Market

d)

Capital Market

3.

The market deals with securities that have been issued previously is:

a)

Money Market

b)

Secondary Market

c)

Capital Market

d)

Primary Market

4.

Which of the following parties is NOT categorizes as borrower of fund in Financial Market?

a)

Commercial Bank

b)

Government Bank

c)

Household

d)

Business Firm

5.

The business formation which require one man's capital and no sharing profit or loss is:

a)

Public Limited Company

b)

Limited Liability Partnership

c)

General Partnership

d)

Sole Proprietorship

6.

____________________ is a legal entity in which the company's shares are sold to the general public.

a)

Public Limited Company

b)

Private Limited Company

c)

General partnership

d)

Sole Proprietorship

7.

The equity capital sources of corporation is from:

a)

Partners

b)

Issuance of common stock

c)

Friend and Family

d)

General and Limited Partnership

8.

Life span of a ______________ is depending on the owner.

a)

Corporation

b)

Sole Proprietorship

c)

General Partnership

d)

Limited Partnership

9.

Based on diagram, what is the relationship between risk and return?

a)

Negative relationship

b)

Inverse relationship

c)

Positive Relationship

d)

Not Related

10.

Which of the following instrument is categorized under risk free rate investment?

a)

Debenture

b)

Unsecured Loan

c)

Equity Share

d)

Treasury bills

11.

The goals of the firm is:

a)

Forecasting and Planning

b)

Investment and Financing Decision

c)

Coordination and Control

d)

Profit Maximization

12.

The market which deals with long term securities is:

a)

Money Market

b)

Capital Market

c)

Secondary Market

d)

Primary Market

13.

Fund pool by financial intermediaries from __________ will be lend to the __________.

a)

borrower, lender

b)

depositor, borrower

c)

lender, borrower

d)

depositor, lender

14.

The maximum number of partners under general partnership is:

a)

20

b)

2

c)

50

d)

30

15.

Which business formation need to submit their annual report each year?

a)

Sole Proprietorship

b)

General Partnership

c)

Private Limited Company

d)

Limited Liability Partnership

16.

Example of secondary market in Malaysia is Bank Negara Malaysia.

a)

True

b)

False

17.

Example of financial instrument traded under capital market are bonds, common shares and preferred shares.

a)

True

b)

False

18.

Sole proprietorship can be form by a permanent resident of Malaysia.

a)

True

b)

False

19.

General partnership and limited liability partnership are subject to tax deduction of their personal income.

a)

True

b)

False

20.

It is easy to sell and transfer ownership of sole proprietorship to other parties.

a)

True

b)

False

21.

Risk is the reward for investment which normally in the form of interest, dividend and rent.

a)

True

b)

False

22.

Fixed deposit is said to be less risky than equity shares.

a)

True

b)

False

23.

Corporation is the most difficult business formation to be set up.

a)

True

b)

False

24.

Certificate of deposit and bankers acceptance is an example of financial instrument being traded under money market.

a)

True

b)

False

25.

Under investment decision, firm deciding on what sources of finance to fund firm's expansion.

a)

True

b)

False