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Bus Fin Prelim 23-24

Total questions: 45

Worksheet time: 24mins

Name
Class
Date
1.

You borrowed Php. 20,000 from ABC Bank. After a month the amount due to bank is now Php. 25,000. The Php. 5,000 difference is known as?

a)

Charge

b)

Interest Rate

c)

Payment Due

d)

Debt

2.

You were earning Php. 50,000 from a Government Agency. After receiving the said salary, you started to allocate budget for your emergency fund, saving, and other expenses. This is an example of?

a)

Public Finance

b)

Corporate Fiance

c)

Family Finance

d)

Personal Finance

3.

Sam wants to buy a new bag amounting to Php. 500. Due to her hectic schedule from school, she decided that it would be better to buy the new bag next school year and just save the money. After a year, she decided its time to buy the bag but now her money is not enough because the amount of the bag now is Php. 700. This concept is known as?

a)

Time Value of Money

b)

Changes in Value of Money

c)

Increasing in Value of Money

d)

Growing Value of Money

4.

Marites wants to start-up a Milk Tea Shop near Baliwag Polytechnic College, In order to have a starting Capital she borrow money from St. Augustine Cooperative with an Interest of 5%. This Fund is known as?

a)

Credit Finance

b)

Equity Finance

c)

Debt Finance

d)

Bank Finance

5.

Dan has a successful coffee shop due to uniqueness of his coffee that is made of brown rice. Dan's girlfriend suggested that it's better to have another coffee shop because of the increasing demand but Dan does not have enough capital to open another branch, so he decided to offer shares of his company in exchange for additional capital. This is an example of?

a)

Debt Finance

b)

Equity Finance

c)

Paid-in Capital

d)

Credit Finance

6.

The President requested to lower the tax percentage by 3% to increase the tax collection in order to have an additional National Budget. This activity is known as?

a)

Government Finance

b)

National Finance

c)

Domestic Finance

d)

Public Finance

7.

Gary was promoted as a new manager for ZYX Company, majority of his task deals with how his company will get additional funding and how much dividend will be distributed. This activity is known as?

a)

Corporate Finance

b)

Company Finance

c)

Organizational Finance

d)

Business Finance

8.

Kate make sure that she has a concrete business plan for her dress shop to ensure that optimal profit for her business. This means?

a)

Earn Profit

b)

Increasing Profit

c)

Earning Profit

d)

Maximizing Profit

9.

Jeremy is hired as a new financial manager, he focuses on updating monthly update with the financial aspect of the company to the investors and board of directors. This objective means?

a)

Strong Relationship

b)

Manage Relationships

c)

Growing Relationship

d)

Developing Relationship

10.

Business must have permits and follow industry specific regulations. This means?

a)

Ensuring Compliance and Financial Requirements

b)

Tracking Liquidity and Financial Requirements

c)

Developing Financial Scenarios

d)

Applying for Permit and Financial Requirements

11.

One of the scope of Financial Management is that business have enough money to pay rents, employee salaries, raw materials and other expenses.

a)

Planning

b)

Budgeting

c)

Procedures

d)

Managing & Assessing Risk

12.

Tom invest in Axie for Php. 50,000 and losses because the SLP falls down fron Php.5 to .05centavos. The risk that Tom goes through in this investment is an example of?

a)

Market Risk

b)

Credit Risk

c)

Liquidity Risk

d)

Operational Risk

13.

Jessica wants to apply loan to WWW Bank but before the bank could approved Jessica's loan, the bank manager asked for personal information and extensive requirements. This manager steps will help the bank with?

a)

Market Risk

b)

Credit Risk

c)

Liquidity Risk

d)

Operational Risk

14.

JJ opens a small sushi shop near St. Mary's College after a month a friend suggested to add a lemon drinks since it is popular among customer. However upon accounting her income she only has enough for her day to day business operations but after a day or two she agree to add lemon drinks to her product offerings. The risks she takes is known as?

a)

Market Risk

b)

Credit Risk

c)

Liquidity Risk

d)

Operational Risk

15.

Upon the retirement of his parents, Ian manages their family business. Then, one day her sister asked him if he could include her husband on their family business. Ian was hesitant due to his brother in law criminal record like fraud and estafa. What risk did Ian was trying to avoid?

a)

Market Risk

b)

Credit Risk

c)

Liquidity Risk

d)

Operational Risk

16.

Scope of Financial Management that deals with how business manage fund to grow or add new products or services.

a)

Planning

b)

Budgeting

c)

Procedures

d)

Managing & Assessing Risk

17.

Types of Financial Institutions that accept deposits and lend money.

a)

Investment Bank

b)

Internet Bank

c)

Thrift Bank

d)

Commercial Bank

18.

Michelle wants a non-conventional banks for convince transaction. What type of Financial Institution did she need?

a)

Commercial Bank

b)

Investment Bank

c)

Internet Bank

d)

Thrift Bank

19.

Ali wants to transfer the risk or loss that might occur if something happen to her. What financial institutions she needs?

a)

Brokerage Firm

b)

Credit Union

c)

Mortgage Company

d)

Insurance Company

20.

Banco De Oro , Bank of Philippine Island and Metropolitan Bank is an example of______?

a)

Central Bank

b)

Commercial Bank

c)

Investment Bank

d)

Thrift Bank

21.

If Dave want to buy and sell debt securities. Which Market did he have to go?

a)

Financial Market

b)

Bond Market

c)

Commodities Market

d)

Derivaties

22.

What are the basic function of Financial Manager ?

a)

Investment / Financial / Dividend Decision

b)

Capital / Investment / Financial Decision

c)

Budgeting / Investment / Dividend Decision

d)

Financial / Performance / Budgeting Decision

23.

Security can represent ownership of part of private-traded company?

a)

TRUE

b)

FALSE

24.

Ira wants to buy a bonds and stocks. Bonds and stocks are _________?

a)

Cash Instruments

b)

Derivative Instruments

c)

Foreign Exchange

d)

Financial Instruments

25.

Diane wants to start-up a money changer business but before she starts she first test if its going to be a profitable business. So, she simultaneously buys and sells dollars in different dates and rates. This activity is known as?

a)

Spot

b)

Outright Forwards

c)

Currency Swap

d)

Currency Buying

26.

It represent monetary assets that have contractual agreement between parties.

a)

Securities

b)

Deposits & Loan

c)

Forward

d)

Options

27.

The purpose of Finance is to help not only business but also individuals and government

a)

TRUE

b)

FALSE

28.

SAFE occurs in the over-the-counter market

a)

TRUE

b)

FALSE

29.

A forward should have a specific price at the end of each contract.

a)

TRUE

b)

FALSE

30.

A FUTURE is a derivative instruments which has predetermined future and determined exchange rate.

a)

TRUE

b)

FALSE

31.

Providing up-to-date financial report and data is one of the importance of Financial Management used in strategizing.

a)

TRUE

b)

FALSE

32.

The specific mix of debt and equity used to finance a company's assets and operations is known as Capital Budgeting

a)

TRUE

b)

FALSE

33.

Joe wants to trade (buy and sell) currencies which market did she needs to transact.

a)

Bond Market

b)

Commodities Market

c)

Derivatives

d)

Forex Trading

34.

Buying and Selling is known as primary market while issuing new debt is known as secondary market.

a)

TRUE

b)

FALSE

35.

Saving and Loans Association only provide more than 20% of total lending to businesses.

a)

TRUE

b)

FALSE

36.

Paying debts first is the most profitable investment.

a)

TRUE

b)

FALSE

37.

In any company the main tasks of the financial manager is to make business profitable and nothing else.

a)

TRUE

b)

FALSE

38.

Morgan is a newly hired Financial Manager his tasks is to evaluate how much money is needed in order to start up a new branch of fast food chain. This activity falls under __________?

a)

Capital Budgeting

b)

Capital Structure

c)

Capital Investment

d)

Working Capital

39.

Rei earned Php. 1,500 for her tutoring job. Last month, she went to Savemore to buy some groceries and filled a full basket of assorted items. This month with the same salary she makes purchases again but this time there were only few items in her basket. The reason is ________?

a)

Time value of money

b)

Inflation

c)

Deflation

d)

Increase prices of the products

40.

Controlling means insuring that each part of the business is contributing to the vision and strategy.

a)

TRUE

b)

FALSE

41.

It is activity that concerned with business funds.

(a)  

42.

It refers to someone that responsible for the best mix of financial decision.

(a)  

43.

It is a contracts for monetary assets that can be purchased, traded, created, modified or settled for.

(a)  

44.

A place that provides buyers and sellers that means to trade.

(a)  

45.

It refers to the corpus of funds and credit employed in a business

(a)