This quiz works best with JavaScript enabled. Home > Business Finance > Business Finance > Business Finance – Quiz 39 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Business Finance Quiz 39 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. He/She provides the direction of the company. A) Finance manager. B) Board of directors. C) Marketing manager. D) Shareholders. Show Answer Correct Answer: B) Board of directors. 2. Which of the following is not an alternative name for a primary bank? A) Retail bank. B) Commercial bank. C) Merchant bank. D) Clearing bank. Show Answer Correct Answer: C) Merchant bank. 3. Which of the following is not a limitation of equity share as a source of finance? A) Fluctuating returns. B) Costly source. C) Dilutes the voting power. D) No explicit cost. Show Answer Correct Answer: D) No explicit cost. 4. Local prices of farm goods are negatively affected by high importation. Due to this, farmers have no choice but to accept the lowest market prices for their highly perishable products. What risk is involved in the situation? A) Market risk. B) Inflation risk. C) Credit risk. D) Reinvestment risk. Show Answer Correct Answer: A) Market risk. 5. Which of the following statements about budgeting is incorrect? A) Budget provides direction and coordination. B) Budget motivates staff. C) A budget is financial plan. D) A budget looks back and review performance. Show Answer Correct Answer: B) Budget motivates staff. 6. A financial statement that reports a company's revenues and expenses and resulting net income or net loss for a specific period of time A) Dow Jones. B) Operating costs. C) Income statement. D) Stock market. Show Answer Correct Answer: C) Income statement. 7. Cash flow is A) Assets for a business. B) Depreciation. C) Movement of funds through your business each month. D) Money you entered and existed for a certain amount of time. Show Answer Correct Answer: C) Movement of funds through your business each month. 8. Directed toward the management A) Personal finance. B) Business finance. C) Capital market. D) Operating decisions. Show Answer Correct Answer: A) Personal finance. 9. A plan to be effective should be created using S.M.A.R.T. philosophy. what do S.M.A.R.T. mean? A) Specific, measurable, assignable, realistic and time-related. B) Specific, macro, assignable, realistic, and time-related. C) Smart, measurable, assignable, realistic, and time-related. D) None of the above. Show Answer Correct Answer: A) Specific, measurable, assignable, realistic and time-related. 10. Which of the following is a permanent source of finance for a company? A) Long-term bank loan. B) Share capital. C) Creditors. D) Overdraft. Show Answer Correct Answer: B) Share capital. 11. If a project that costs $ 30, 000 brings in $ 5, 000 a year, the payback is A) 4 years. B) 5 years. C) 6 years. D) Cannot determine from this information. Show Answer Correct Answer: C) 6 years. 12. It refers to the place where the selling-buying activity occurs to trade equity securities such as bonds and stocks, currencies, derivative securities, notes, and mortgages. A) Capital Market. B) Financial Institutions. C) Financial Instruments. D) Business Finance. Show Answer Correct Answer: A) Capital Market. 13. Which of the following sources of finance involves the business requesting a specific sum of money from individuals, usually via the internet? A) Alternative investment market. B) Business angels. C) Venture capital. D) Crowdfunding. Show Answer Correct Answer: D) Crowdfunding. 14. Which of the following is not a characteristic of an effective goal? A) Realistic. B) Measurable. C) Point in time. D) Specific. Show Answer Correct Answer: C) Point in time. 15. Upon the retirement of his parents, Ian manages their family business. Then, one day her sister asked him if he could include her husband on their family business. Ian was hesitant due to his brother in law criminal record like fraud and estafa. What risk did Ian was trying to avoid? A) Market Risk. B) Credit Risk. C) Liquidity Risk. D) Operational Risk. Show Answer Correct Answer: D) Operational Risk. 16. Working capital is calculated by: A) Current assets-fixed assets. B) Current liabilities-current assets. C) Fixed assets-current assets. D) Current assets-current liabilities. Show Answer Correct Answer: D) Current assets-current liabilities. 17. It describes what a company wants to become. A) Vision. B) Mission. C) Goal. D) Objective. Show Answer Correct Answer: A) Vision. 18. Refers to banks and credit unions. A) Financial institutions. B) Businesses. C) Consumers. D) Financial markets. Show Answer Correct Answer: A) Financial institutions. 19. It is a purchase that is completed with money that has the potential to produce income or profit. A) Authority. B) Financial. C) Investment. D) Risk premium. Show Answer Correct Answer: C) Investment. 20. What is a financial institution that accepts deposits and channels the money into lending activities? A) Credit. B) Commercial Banks. C) Credit Unions. D) Insurance. Show Answer Correct Answer: B) Commercial Banks. ← 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