Finance

Topics: Investment, Stock, Finance Pages: 7 (1138 words) Published: September 18, 2013
FINC2011 Tutorial 1

BMA Ch.1 Problems 1, 2, 3, 4, 7, 9, 10, 11, 12

|1.| |Read the following passage: “Companies usually buy (a) assets. These include both tangible assets such as (b) and | | | |intangible assets such as (c). To pay for these assets, they sell (d) assets such as (e). The decision about which | | | |assets to buy is usually termed the (f) or (g) decision. The decision about how to raise the money is usually termed | | | |the (h) decision.” Now fit each of the following terms into the most appropriate space: financing, real, bonds, | | | |investment, executive airplanes, financial, capital budgeting, brand names. | | | |Answer | | | |. a. real | | | |b. executive airplanes | | | |c. brand names | | | |d. financial | | | |e. bonds | | | |f. investment | | | |g. capital budgeting | | | |h. financing | |2.| |Which of the following are real assets, and which are financial? | | | |a. | | | |   | | | |A share of stock. | | | | | | | |b. | | | |   | | | |A personal IOU. | | | | | | | |c. | | | |   | | | |A trademark. | | | | | | | |d. | | | |   | | | |A factory. | | | | | | | |e....
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