Exam, questions and answers PDF

Preview

Summary

Download Exam, questions and answers PDF

Description

Business Finance – Fin 21 Multiple Choice (1 point each) Direction: Choose only the letter of your choice and SHADE it on the Examination booklet. 1. Which of the following statements is NOT a factor that contributes to economic difficulty? A. Low productivity in the workplace C. Graft and corruption in the government B. Adequate capitalization D. The declining value of the peso 2. ________is any lawful economic activity concerned with the production and/or distribution of goods and services for profit. A. Commerce B. Service C. Business D. Industry 3. This refers to discovery and exploration of a business opportunity with the purpose of converting it into a going concern. A. Valuation B. Franchising C. Business promotion D. Feasibility study 4. An aspect of the feasibility study which is concerned on the source of financing for the project is known as? A. Marketing study B. Management study C. Production study D. Financing study 5. They are those whose main occupation is business promotion. A. Professional promoters C. Banking promoters B. Side-line promoters D. Subdivision promoters 6. It is an agreement whereby one person grants another the right to buy a certain property and an agreed price, at or within a stated future time. A. Lease B. Franchise C. Option D. Concession 7. ________ gives the holder the monopoly on the exploitation of a literary or artistic work for a certain period subject to renewal. A. Royalty B. Franchise C. Patent D. Copyright 8. This is concerned with the fundamentals of managing one’s own personal money affairs. A. Finance of Non-profit Org. B. Public finance C. Personal finance D. Corporate finance 9. It Is defined as the estimate of income and expenditures for a future period. A. Capital B. Asset C. Budget D. Forecast 10. Which of the following industries is involved in agriculture, forestry and fish culture. A. Extractive B. Manufacturing C. Genetic D. Construction 11. When a firm decides on obtaining a higher rate of return on its investment, It is said to be? A. Maximizing wealth B. Maximizing profit C. Maximizing profitability D. Maximizing net value 12. This pertains to a concept stating that money increases its value with the passing of time. A. Risk and return trade-off B. Fair market value C. Time value of money D. Business finance 13. This is required to take care of difficulties encountered due to insufficient income generated by the firm. A. Reserve fund B. Cost of organization C. Working capital D. Treasury fund 14. Return on investment is also known as? A. Expenses B. Capital C. Net worth D. Revenue 15. They are persons who perform promotion activities occasionally. A. Professional promoters C. Banking promoters B. Side-line promoters D. Subdivision promoters 16. Which of the following statements is NOT a reason of business failure? A. Poor location C. Lack of adequate financing B. Proper management practices D. Absence of new technology 17. This is defined as the study of acquisition and investment of cash for the purpose of enhancing value and wealth. A. Business B. Business Finance C. Finance D. Accounting 18. This pertains to a person responsible for the formation of a company. A. Promoter B. Franchisor C. Creditor D. Entrepreneur

19. Statement of financial position is also known as? A. Income statement B. Balance sheet C. Cash flow statement report 20. Which of the following industries is involved in building infrastructures. A. Extractive B. Manufacturing C. Genetic D. Construction

D. Chairman’s

21. These items present goodwill, patents, copyright which are attributed to the firm. A. Accounts receivable B. Intangible assets C. Fixed assets D. Current assets 22. _______ is a detailed investigation and analysis of a proposed business venture to determine its viability. A. Valuation B. Franchising C. Business promotion D. Feasibility study 23. This refers to the gross income from the production and sale of a firm’s product or service. A. Expense B. Capital C. Net worth D. Revenue 24. The report set out each year by the company to its stockholders or members is called ____________. A. Auditor’s report B. Chairman’s report C. Annual report D. Stockholder’s report 25. This refers to firms which are engaged in the buying and selling of goods and services. A. Commerce B. Service C. Business D. Industry 26. This refers to the provision of money for commercial use. A. Business finance B. Public finance C. Private finance D. International finance 27. These items show the firm’s ownership of property like land, buildings, plan and machinery, equipment, vehicles, furniture and fixtures, all valued at cost less depreciation written off. A. Accounts receivable B. Intangible assets C. Fixed assets D. Current assets 28. Which of the following business firms is offering service oriented business? A. San Miguel Corp. B. Coca Cola Company C. Globe Telecom. D. Nestle Phil. Inc. 29. They consist of investment houses engaged in the promotion of certain business ventures through the sale of securities. A. Banking promoters C. Subdivision promoters B. Financial promoter D. Side-line promoters 30. This refers to the monetary values of the goods and services used in the production and delivery process in order to obtain revenues. A. Expense B. Capital C. Net worth D. Revenue 31. Which of the following industries is involved in converting raw materials into finished products. A. Extractive B. Manufacturing C. Genetic D. Construction 32. Which of the following deals with the revenue and expenditure patterns of the government and their various effects on the economy. A. Business finance B. Public finance C. Private finance D. International finance 33. __________ involves an agreement over the use of real property for a period of time. A. Lease B. Franchise C. Option D. Concession 34. It is an estimate of the quantity of product that should be produced in accordance with the sales budget. A. Materials Budget B. Budget C. Purchase budget D. Production budget 35. It is composed of debts payable within a few days, weeks or months, like those incurred in the purchase of raw materials and stocks. A. Notes payable B. Bonds payable C. Accounts payable D. Loans payable 36. Which of the following industries is involved in the extraction of goods from natural resources which include mining, lumbering, hunting and fishing. A. Extractive B. Manufacturing C. Genetic D. Construction 37. It is the statement produced periodically, normally at the end of financial year, showing an organization’s assets, liabilities, and the interest of the owners. A. Income statement B. Balance sheet C. Cash flow statement D. Chairman’s report 38.__________ is required to finance inventories and supplies, salaries and wages, and the likes. A. Reserve fund B. Cost of organization C. Working capital D. Treasury fund 39. These are debts evidenced by promissory notes and oftentimes backed up by collaterals. A. Mortgage payable B. Notes & Loans payable C. Bonds Payable D. Accounts payable 40. An aspect of the feasibility study which is concerned on the appropriate form of organization and internal structure of the organization. A. Marketing study B. Management study C. Production study D. Financing study

41. It is an exclusive right granted by the franchisee to the franchisor for the operation of public utility service, or the selling or distribution of a product in the a specified area. A. Royalty B. Franchise C. Patent D. Copyright 42. This private finance includes private undertaking such as charity, religion, and some private educational institutions.

A. Finance of Non-profit Org.

B. Public finance

C. Personal finance

D. Corporate

finance 43. This pertains to the procurement and administration of funds with the view of achieving the objectives of the business. A. Business finance B. Public finance C. Private finance D. International finance 44. This pertains to those firms which are concerned with production. A. Commerce B. Service C. Business D. Industry 45. Statement of financial performance is also known as? A. Income statement B. Balance sheet C. Cash flow statement D. Chairman’s report 46. It shows an estimate of sales in units and dollars or pesos for each major subdivision of sales. A. Revenue B. Sales budget C. Production budget D. Materials Budget 47. Which of the following statements is NOT a reason why people engage in business? A. Profits B. Personal satisfaction C. Punishment D. Service to the community 48. They are banking institutions which provide business promotion services to their clients. A. Banking promoters C. Subdivision promoters B. Financial promoter D. Side-line promoters 49. Uncertainty as to loss is called__________. A. Profit B. Opportunity C. Risk D. Return 50. This gives the holder the sole right to make, use, or sell his invention during the period it is in force. A. Royalty B. Franchise C. Patent D. Copyright...