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FP1 Final Exam Rev. Part 1

Total questions: 36

Worksheet time: 26mins

Name
Class
Date
1.

When return on capital is positive, the company is most likely:

a)

losing value.

b)

low on cash.

c)

growing in value.

d)

paying out dividends.

2.

Determining which projects a business should invest in is known as:

4 lines
3.

Which is a measure of how well a business generates cash flow?

a)

accounts receivable

b)

accounts payable

c)

capital structure

d)

return on capital

4.

The goals of the finance function are to ensure profitability and to:

a)

reduce risks.

b)

advertise products.

c)

give out information.

d)

manufacture raw materials.

5.

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?

a)

get enough sleep

b)

focus on goals, not

6.

Which of the following is a time management technique?

a)

focus on tasks

b)

prioritize tasks

c)

divide large projects into smaller parts

d)

be realistic in accepting responsibility for work

7.

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?

a)

A. delegating activities

b)

B. standardizing tasks

c)

C. setting objectives

8.

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?

a)

be flexible

b)

get enough sleep

c)

plan meetings wisely

d)

know when and how you work best

9.

The demand of time affects the supply of time available in what way?

a)

Increases the supply of time

b)

Decreases the supply of time

c)

Has no effect on the supply of time

d)

Balances the supply of time

10.

When the demand for time increases, what happens?

a)

The supply of time increases.

b)

The supply of time decreases.

c)

The supply of time stays the same.

d)

The supply of time matches time demanded.

11.

Finance is the business function that involves managing:

a)

information.

b)

marketing.

12.

Which is the most likely reason for faster-than-average employment growth of financial analysts and personal financial advisors?

a)

The U.S. population is worse off financially than before.

b)

Globalization of the securities markets makes investing more complicated.

c)

The U.S. population likes to use the internet to handle their finances.

d)

The U.S. population is aging and will need more financial advice.

13.

Which of the following statements is true about financial analysts and personal financial advisors?

a)

They help individuals manage their financial issues.

b)

They require a college degree.

c)

They do not need to understand financial markets.

d)

Financial analysts and personal financial advisors do not need a college degree.

14.

The primary purpose of insurance companies is to provide products that help clients:

a)

minimize their risk.

b)

reduce their assets.

c)

increase their profitability.

15.

The concept of time management refers to the process of how to:

a)

use a calendar.

b)

keep a time log.

c)

organize belongings.

d)

efficiently use a 24-hour day.

16.

Commercial banks and brokerage firms are examples of:

a)

legislative groups.

b)

financial intermediaries.

c)

nonprofit organizations.

d)

social institutions.

17.

Which of the following is a type of financial institution?

a)

commercial banks.

b)

insurance institutions.

c)

nonprofit organizations.

d)

financial intermediaries.

18.

To keep communication flowing with other departments, the finance function depends on:

a)

marketing.

b)

production.

c)

accounts receivable.

d)

information systems.

19.

Which are examples of deposit-taking financial institutions?

a)

commercial banks, credit unions, and brokerages

b)

commercial banks, corporations, and mutual savings banks

c)

credit unions, savings and loan associations, and commercial banks

d)

savings and loan associations, mutual savings banks, and

20.

When scheduling daily activities, one should always keep in mind that plans may need to change, creating the need for:

a)

activities

b)

appointments

c)

assignments

d)

flexibility

21.

When an employee always works a full day, but never seems to complete any tasks, that employee needs to focus on:

a)

time management.

b)

scheduling.

c)

delegation.

d)

prioritization.

22.

A manager is most likely to use financial information when:

a)

establishing lines of authority within an organization.

b)

researching the demographics of a market.

c)

determining the profitability of a product line.

d)

developing a marketing strategy.

23.

The finance function ensures that the company's financial goals are: A. easy to accomplish. B. related to product development. C. in line with new target market. D. determining resources available to fund a new project.

a)

easy to accomplish

b)

related to product development

c)

in line with new target market

d)

determining resources available to fund a new project

24.

An amount of money that a business owes to someone else is referred to as:

a)

equity

b)

an asset

c)

accounts payable

d)

accounts receivable

25.

An institution that combines the elements of a bureaucracy with those of a private company is called a:

4 lines
26.

Thad is investing in a money market, which buys and sells products such as: A. technology. B. treasury bills. C. shares of stock.

a)

technology

b)

treasury bills

c)

shares of stock

27.

A. private company. B. semi-government. C. franchise business. D. government institution.

a)

private company

b)

semi-government

c)

franchise business

d)

government institution

28.

When Alana prepares a report so that all financial data is clearly disclosed, she is ensuring that the information is:

a)

flexible.

b)

relevant.

c)

timely.

d)

transparent.

29.

Which activities should be excluded from a daily to-do list?

a)

new activities that must be completed the next day.

b)

tasks that are routine and do not require immediate attention.

c)

activities that are not time-sensitive.

d)

tasks that have already been completed.

30.

Which activities are required from the master calendar?

a)

day

b)

required activities from the master calendar

c)

activities previously planned for the day

d)

activities that must be done next month

31.

Which reason is invalid for the faster-than-average employment growth of financial analysts and personal financial advisors?

4 lines
32.

Globalization of the securities markets makes investing more complicated.

a)

True

b)

False

33.

A large segment of the population, namely baby boomers, is facing retirement.

a)

True

b)

False

34.

Generally speaking, the U.S. population is in a worse financial state than before.

a)

True

b)

False

35.

What do many businesses develop to encourage ethical behavior in finance?

(a)  

36.

One of the roles of ethics in finance is to encourage business employees to:

a)

prepare operating budgets.

b)

increase company profits.

c)

make the right decisions.

d)

sell to customers.