WorksheetsBF21 Unit 1 Practice Test
Total questions: 29
Worksheet time: 15mins
Which are examples of deposit-taking financial institutions?
commercial banks, credit unions, and brokerages
commercial banks, corporations, and mutual savings banks
credit unions, savings and loan associations, and commercial banks
savings and loan associations, mutual savings banks, and insurance
firms
Which is an example of a non-deposit financial institution?
credit union
mortgage bank
mutual savings bank
commercial bank
Which is a measure of how well a business generates cash flow?
accounts receivable
accounts payable
capital structure
return on capital
The goals of the finance function are to ensure profitability and to:
reduce risks.
advertise products.
give out information.
manufacture raw materials.
Determining which projects a business should invest in is known as:
return on capital.
capital budgeting.
capital structuring.
the cash conversion cycle.
Julie, a newly promoted manager, lacks the time to properly prepare
employee work schedules and assigns this duty to the assistant manager.
Which time management technique is Julie using?
delegating activities
standardizing tasks
setting objectives
procrastinating
An institution that combines the elements of a bureaucracy with those of
a private company is called a:
private company
semi-government
franchise business
government institution
Which reason is invalid for the faster-than-average employment growth of
financial analysts and personal financial advisors?
Generally speaking, the U.S. population is better educated.
Globalization of the securities markets makes investing more
complicated.
A large segment of the population, namely baby boomers, is facing
retirement.
Generally speaking, the U.S. population is in a worse financial state
than before.
When Alana prepares a report so that all financial data is clearly
disclosed, she is ensuring that the information is:
flexible
relevant
timely
transparent
An amount of money that a business owes to someone else is referred to
as:
equity
an asset
accounts payable
balance
Beau is stressed out because he agreed to take on three new clients
when his calendar is already full. Which time-management principle does
he need to learn?
get enough sleep
focus on goals, not on tasks
divide large projects into smaller parts
be realistic in accepting responsibility for work
What effect does the demand of time have on the supply of time
available?
The supply of time increases
The supply of time decreases
The supply of time stays the same
The supply of time matches time demanded
When return on capital is positive, the company is most likely:
losing value
low on cash
growing in value
paying out dividends
The concept of time management refers to the process of how to:
use a calendar
keep a time log
organize belongings
efficiently use a 24-hour day
One of the roles of ethics in finance is to encourage business employees
to:
prepare operating budgets
increase company profits
make the right decisions
sell to customers
When an employee always works a full day, but never seems to complete
any tasks, that employee needs to focus on:
time management
worrying more about the job
how to delegate all work responsibilities
observing the methods of fellow workers for getting work done
Natalia is upset because she was supposed to work on a certain account
today, but her boss switched her to another account at the last minute.
Which time-management principle would benefit Natalia?
be flexible
get enough sleep
plan meetings wisely
know when and how you work best
When scheduling daily activities, one should always keep in mind that
plans may need to change, creating the need for:
activities
appointments
assignments
flexibility
The finance function ensures that the company's financial goals are:
easy to accomplish
related to product development
in line with organizational priorities
acceptable to the marketing department
Which is a way that businesses can use financial information?
to identify trends
to conduct focus groups
to select selling strategies
to create an economic system
Which activities should be excluded from a daily to-do list?
new activities that must be completed the next day
required activities from the master calendar
activities previously planned for the day
activities that must be done next month
What do many businesses develop to encourage ethical behavior in
finance?
penalties
punishments
sanctions
standards
The primary purpose of insurance companies is to provide products that
help clients:
minimize their risk
reduce their assets
increase their profitability
strengthen their investments
Which is the most likely reason for faster-than-average employment
growth of financial analysts and personal financial advisors?
The U.S. population is worse off financially than before.
Globalization of the securities markets makes investing more
complicated.
The U.S. population likes to use the internet to handle their financial
issues.
Financial analysts and personal financial advisors do not need a
college degree.
Thad is investing in a money market, which buys and sells products such
as:
technology
treasury bills
shares of stock
agricultural goods
Finance is the business function that involves managing:
information
marketing
money
production
To keep communication flowing with other departments, the finance
function depends on:
marketing
production
accounts receivable
information systems
Commercial banks and brokerage firms are examples of:
legislative groups.
insurance institutions.
nonprofit organizations
financial intermediaries
A manager is most likely to use financial information when:
establishing lines of authority within an organization.
researching the demographics of a new target market.
determining resources available to fund a new project.
calculating the number of on-the-job injuries in the past year.
