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WorksheetsBUSINESS FINANCE SHORT QUIZ BY SIR JECHO
Total questions: 10
Worksheet time: 5mins
To achieve the goal of profit maximization for each alternative being considered, the financial manager would select the one that is expected to result in the highest monetary return.
TRUE
FALSE
Dividend payments change directly with changes in earnings per share.
TRUE
FALSE
The wealth of corporate owners is measured by the share price of the stock.
TRUE
FALSE
Financial markets are intermediaries that channel the savings of individuals, businesses, and the government into loans or investments.
TRUE
FALSE
The money market involves trading of securities with maturities of one year or less while the capital market involves the buying and selling of securities with maturities of more than one year.
TRUE
FALSE
The ______ is created by a financial relationship between suppliers and users of short-term funds.
financial market
money market
stock market
capital market
Firms that require funds from external sources can obtain them from _____.
financial markets
private placement
financial institutions
All of the above
The major securities traded in the capital markets are ____.
stocks and bonds.
bonds and commercial paper
commercial paper and Treasury bills
Treasury bills and certificates of deposit
The primary goal of the financial manager is _____.
minimizing risk
maximizing profit
maximizing wealth
minimizing return
A financial manager must choose between four alternative Assets: 1, 2, 3, and 4. Each asset costs $35,000 and is expected to provide earnings over a three-year period as described below.
Based on the profit maximization goal, the financial manager would choose _____.
Asset 1
Asset 2
Asset 3
Asset 4
