This quiz works best with JavaScript enabled. Home > Business Finance > Business Finance > Business Finance – Quiz 24 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Business Finance Quiz 24 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The valuation calculating the present value of a future cash flow to determine its value today is called ..... valuation. A) Complex. B) Current. C) Discounted cash flow. D) Future cash flow. Show Answer Correct Answer: C) Discounted cash flow. 2. Danny B, is a business owner. For 5 years in the business, he saved Php 500, 000 in his bank account. Danny invests a part of this money into a government bond with low risk but low return. What type of risk tolerance is shown? A) Conservative risk tolerance. B) Moderate risk tolerance. C) Aggressive risk tolerance. D) Low tolerance. Show Answer Correct Answer: A) Conservative risk tolerance. 3. Increasing credit terms to costumers are likely to: A) Upset costumers. B) Please costumers. C) Decrease working capital. D) Provide additional long term finance. Show Answer Correct Answer: B) Please costumers. 4. The customer of Finkle Ltd has refused to take delivery of goods because it says they do not meet its quality requirements. Which type of risk is this an example of? A) Physical. B) Credit. C) Trade. D) Liquidity. Show Answer Correct Answer: C) Trade. 5. Capital obtained by issue of equity shares is known as-? A) Loans. B) Share capital. C) Debts. D) Reserve funds. Show Answer Correct Answer: B) Share capital. 6. What shareholders get in return on investment? A) Interest. B) Rent. C) Debentures. D) Dividend. Show Answer Correct Answer: D) Dividend. 7. Is a person who works for the owner to find/screen tenants, collect rent, maintain property, and respond to tenants' needs A) Property Manager. B) Application form. C) Tenant. D) None of above. Show Answer Correct Answer: A) Property Manager. 8. Equity Shareholders are called A) Owners of the Company. B) Partners of the Company. C) Executive of the Company. D) Guardian of the Company. Show Answer Correct Answer: A) Owners of the Company. 9. Which of the following is not a reason why a business needs money? 1) To start the business 2) To expand the business 3) To deal with a negative cash-flow problem 4) To increase prices of its products A) . B) . C) . D) . Show Answer Correct Answer: A) . 10. Fixed assets are: A) Items that the business owns that will last for more than one year. B) Machinery that cannot be moved around the factory. C) Fixtures and fittings that can never be sold. D) None of above. Show Answer Correct Answer: A) Items that the business owns that will last for more than one year. 11. Which of the following is NOT usually considered a personal source of finance. A) Savings. B) Redundancy payments. C) Crowdfunding. D) Credit card. Show Answer Correct Answer: C) Crowdfunding. 12. Jana wants to buy an expensive new machine for her salon and she wants pay installments over 5 years. What is the best source of finance for this case? A) Trade credit. B) Overdraft. C) Bank loan. D) Leasing. Show Answer Correct Answer: D) Leasing. 13. Sunita has the choice of two investments carrying similar levels of risk. One is short-term and the other is a long-term bond. Sunita should expect the interest on the longer term bond to be A) Normally higher. B) Lower. C) Normally the same. D) Impossible to tell. Show Answer Correct Answer: A) Normally higher. 14. The type of financial manager who monitor and control the flow of cash that comes in and goes out of the company to meet the company's business and investment needs. A) Cash Manager. B) Controllers. C) Credit Manager. D) Insurance Manager. Show Answer Correct Answer: A) Cash Manager. 15. Which of the following statements about personal sources of finance is false? A) Often cheaper in the long-term. B) Less 'red tape' or delay in getting the cash. C) Less personal financial risk for the entrepreneur. D) May be harder to raise large amounts. Show Answer Correct Answer: C) Less personal financial risk for the entrepreneur. 16. Which of the following is not a reason for finance (that we have studied) A) To start up. B) To manage daily operations. C) To manage budgets. D) To expand. Show Answer Correct Answer: C) To manage budgets. 17. Hire purchase is used when a business: A) Wishes to pay for an asset in installments. B) Wishes to change its legal structure. C) Wants to own the asset straight away. D) Wishes to upgrade assets on a regular basis. Show Answer Correct Answer: A) Wishes to pay for an asset in installments. 18. Fill in the blank with the best answer:The finance function plans and controls company ..... A) Management. B) Accounting. C) Spending. D) None of above. Show Answer Correct Answer: C) Spending. 19. A portion of the net earnings may be retained in the business for use in the future. It is a source of: A) Selffinancing. B) Publci financing. C) Retained financing. D) External financing. Show Answer Correct Answer: A) Selffinancing. 20. What is the most likely source of finance for a small firm? A) A debenture. B) Issuing shares. C) A bank loan. D) None of above. Show Answer Correct Answer: C) A bank loan. ← PreviousNext →Related QuizzesBusiness Finance QuizzesBusiness Finance Quiz 1Business Finance Quiz 2Business Finance Quiz 3Business Finance Quiz 4Business Finance Quiz 5Business Finance Quiz 6Business Finance Quiz 7Business Finance Quiz 8Business Finance Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books