Business Finance Quiz

1. For our course, "Finance" means the _____ and "Business Finance" means the _____.

A. management of money invested in business assets expected to increase in market value or otherwise pay a fair return; management of money invested in assets expected to increase in market value or pay a fair return.

B. study and application of Accounting principles as they pertain to any organization; study and application of Accounting principles as they pertain to a business.

C. management of money invested in assets expected to increase in market value or otherwise pay a fair return; management of money invested in business assets expected to increase in market value or otherwise pay a fair return.

D. study of the management of the money supply in the economy; study of the financial management for a company.
6.67 points
Question 2
1.
There is no option C.

D.
There is no option D.
6.67 points
Question 10
1.
What are the names of the three stock market indexes highlighted in the textbook, how many stock are in the index, and what is their general purpose?
Answer

A.
S&P 500 (500 stocks); VGTSX Global (2,000 stocks); Russell 2000 (2,000 stocks); to predict the future direction for stock prices.

B.
American Stock Exchange (800 stocks); Dow Jones Industrial Average (1,000); S&P 500 (500 stocks); to display which stocks are doing well versus those those that are not doing well.

C.
Dow Jones Industrial Average (30 stocks); Standard & Poor's 500 (500 stocks); NASDAQ (2,800 stocks); to show the actual historical market value performance of the stock market as a whole.

D.
There is no option D.
6.67 points
Question 11
1.
What is being measured by the standard financial report: the Balance Sheet?
Answer

A.
The market value of all assets owned and liabilities owed at a point in time.

B.
The total value of all sales, expenses, and net earnings for a period of time.

C.
The total value of all investing and financing activities over a period of time.