C214 Financial Management Overview Concept Quiz
Answers Latest Already Graded A+ |Questions
with Correct Answers 2026 latest update!
1. The goal of the corporation is to: c. Maximize stock price
a.Maximize profits
b. Maximize market share
c. Maximize stock price
d. Minimize risk
2.Risk premium is best described as b. Compensation for risk-taking
a.Return on risky securities
b.Compensation for risk-taking
c. Return on stocks
d. Expected return on securities
, 3.What is the relationship between risk and c. Higher risk causes higher required
return required return?
a.The two are independent
b. Higher required return causes lower risk
c. Higher risk causes higher required return
d. None of the above
4.The value of money depends upon d. All of the above
a.The timing of the receipt
b.The certainty of receipt
c.The size of the receipt
d. All of the above
5.What is the purpose of the SEC 10-K filing a. Promote transparency and
efficiency requirement?
a.Promote transparency and efficiency
b. Prevent insider trading
c. Regulate sales practices
d. Prevent monopolies
6.Which line item is not part of net working b. Bonds
capital?
a.Inventory
b. Bonds
c.Accounts Payable
d.Accrued expenses
7.Which action causes a cash outflow? c. Increase in inventory
a.Increase in accounts payable
b. Decrease in accounts receivable
c. Increase in inventory
d. None of the above
8.Which of the following is correct? c. Net PPE equals Gross PPE plus depreciation expense
a.Gross PPE equals Net PPE
plus depreciation expense
b.Gross PPE equals Net PPE
plus accumulated
depreciation
c. Net PPE equals Gross PPE
plus depreciation expense
d. None of the above
9. Net Margin is defined as: a. Net Income divided by sales
a.Net Income divided by sales
b. EBIT divided by sales
c. Dividends divided by net income
d. Retained earnings divided by sales.
Answers Latest Already Graded A+ |Questions
with Correct Answers 2026 latest update!
1. The goal of the corporation is to: c. Maximize stock price
a.Maximize profits
b. Maximize market share
c. Maximize stock price
d. Minimize risk
2.Risk premium is best described as b. Compensation for risk-taking
a.Return on risky securities
b.Compensation for risk-taking
c. Return on stocks
d. Expected return on securities
, 3.What is the relationship between risk and c. Higher risk causes higher required
return required return?
a.The two are independent
b. Higher required return causes lower risk
c. Higher risk causes higher required return
d. None of the above
4.The value of money depends upon d. All of the above
a.The timing of the receipt
b.The certainty of receipt
c.The size of the receipt
d. All of the above
5.What is the purpose of the SEC 10-K filing a. Promote transparency and
efficiency requirement?
a.Promote transparency and efficiency
b. Prevent insider trading
c. Regulate sales practices
d. Prevent monopolies
6.Which line item is not part of net working b. Bonds
capital?
a.Inventory
b. Bonds
c.Accounts Payable
d.Accrued expenses
7.Which action causes a cash outflow? c. Increase in inventory
a.Increase in accounts payable
b. Decrease in accounts receivable
c. Increase in inventory
d. None of the above
8.Which of the following is correct? c. Net PPE equals Gross PPE plus depreciation expense
a.Gross PPE equals Net PPE
plus depreciation expense
b.Gross PPE equals Net PPE
plus accumulated
depreciation
c. Net PPE equals Gross PPE
plus depreciation expense
d. None of the above
9. Net Margin is defined as: a. Net Income divided by sales
a.Net Income divided by sales
b. EBIT divided by sales
c. Dividends divided by net income
d. Retained earnings divided by sales.
