Business Finance
Seminar Topic: Business Finance
1. What is the primary goal of financial management?
A.
B.
C.
D.
E.
Increased earnings
Maximizing cash flow
Maximizing shareholder wealth
Minimizing risk of the firm all of these
2. In the past, the study of finance has included
A.
B.
C.
D.
E.
mergers raising capital. bankruptcy. acquisitions. all of these.
3. Professor Merton Miller received the Nobel prize in economics for his work on
A.
B.
C.
D.
E.
dividend policy. investment theory. working capital management. capital structure theory. supply chain theory.
4. Professors Harry Markowitz and William Sharpe received their Nobel prize in economics for their contributions to the
A.
B.
C.
D.
E.
options pricing model. theories of working capital management. theories of risk-return and portfolio theory. theories of international capital budgeting. capital structure theory.
5. Proper risk-return management means that
A.
B.
C.
D.
E.
the firm should take as few risks as possible. the firm must determine an appropriate trade-off between risk and return. the firm should earn the highest return possible. the firm should value future profits more highly than current profits. . supply chain management
BUS401 BIZ FINANCE / MC 1 / Ch 01-04
1
6. Which of the following is not one of the three basic financial statements?
A.
B.
C.
D.
E.
Income Statement
Statement of Retained Earnings
Statement of Cash Flows
Balance Sheet
T Account
7. Gross profit is equal to
A.
B.
C.
D.
E.
sales minus cost of goods sold. sales minus (selling and administrative expenses). sales minus (cost of goods sold and selling and administrative expenses). sales minus (cost of goods sold and depreciation expense). net profit
8. Which of the following is not subtracted out in arriving at operating income?
A.
B.
C.
D.
E.
interest expense cost of goods sold depreciation selling and administrative expense
all
1. What is the primary goal of financial management?
A.
B.
C.
D.
E.
Increased earnings
Maximizing cash flow
Maximizing shareholder wealth
Minimizing risk of the firm all of these
2. In the past, the study of finance has included
A.
B.
C.
D.
E.
mergers raising capital. bankruptcy. acquisitions. all of these.
3. Professor Merton Miller received the Nobel prize in economics for his work on
A.
B.
C.
D.
E.
dividend policy. investment theory. working capital management. capital structure theory. supply chain theory.
4. Professors Harry Markowitz and William Sharpe received their Nobel prize in economics for their contributions to the
A.
B.
C.
D.
E.
options pricing model. theories of working capital management. theories of risk-return and portfolio theory. theories of international capital budgeting. capital structure theory.
5. Proper risk-return management means that
A.
B.
C.
D.
E.
the firm should take as few risks as possible. the firm must determine an appropriate trade-off between risk and return. the firm should earn the highest return possible. the firm should value future profits more highly than current profits. . supply chain management
BUS401 BIZ FINANCE / MC 1 / Ch 01-04
1
6. Which of the following is not one of the three basic financial statements?
A.
B.
C.
D.
E.
Income Statement
Statement of Retained Earnings
Statement of Cash Flows
Balance Sheet
T Account
7. Gross profit is equal to
A.
B.
C.
D.
E.
sales minus cost of goods sold. sales minus (selling and administrative expenses). sales minus (cost of goods sold and selling and administrative expenses). sales minus (cost of goods sold and depreciation expense). net profit
8. Which of the following is not subtracted out in arriving at operating income?
A.
B.
C.
D.
E.
interest expense cost of goods sold depreciation selling and administrative expense
all