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Conflicts and Concepts

Total questions: 10

Worksheet time: 3mins

Name
Class
Date
1.

Which capital is Financial Management's chief concern?

a)

Human Capital

b)

Intellectual Capital

c)

Investments

d)

Financial Capital

2.

Which one does not apply?

Financial Management helps organizations accomplish their...

a)

Goals

b)

Strategy

c)

Dreams

d)

objectives

3.

Strategic Analysis involves...

a)

Developing a theoretically informed understanding of the entity's operating environment

b)

Increasing the organization's capacity to deploy and redeploy its employees intelligently

4.

Accounting information and cash flow information differ due to

a)

Accrual basis of accounting

b)

Tax payments

c)

Nothing, they are the same

d)

Depreciation

5.

Which one is not a characteristic of Homo economicus?

a)

Perfect self-interest

b)

Perfect rationality

c)

Perfect Reasoning

d)

Perfect Information

6.

Agency problems will arise in a

a)

Sole proprietorship

b)

Partnership

c)

Any type of separate legal entity and sole proprietorship with an additional manager

d)

Non-Profit Organization

7.

Value of money changes over time due to interest and inflation

a)

True

b)

False

8.

Merton's 5 identified causes of unintended consequences include

a)

Error and Ignorance

b)

Complex Values and immediacy of interest

9.

A bias arising from a person’s unwarranted belief in his or her ability to make decisions using his or her intuitive reasoning, judgment, and cognitive abilities.

a)

Representative bias

b)

Optimism bias

c)

Overconfidence bias

d)

Confirmation bias

10.

Discount rate of 14%, Find the value of x:

PV= 1000(x)^-2

a)

x= 0.14

b)

x= 1.4

c)

x= 1.014

d)

x= 1.14