BUSN 5200: Chapter 1 Practice Quiz Introduction to Financial Management
1. The increase in oil production in the United States characterizes which of the following key
financial concepts presented in this book?
a. the Rule of 72
b. time value of money
c. risk and return
d. capital budgeting
2. Which of the following is not an impact of the slowdown occurring in China's economy?
a. lower demand in materials such as steel, iron ore, and copper
b. real estate market declining in Sydney, Australia
c. money going out of Manhattan, New York
d. falling community prices
3. Not all cash a company generates will be returned to the investors. Which of the following
will NOT reduce the amount of capital returned to the investors?
a. retained eamings
b. taxes
c. dividends
4. This subarea of finance involves methods and techniques to make appropriate decisions
about what kinds of securities to own, which firm’s securities to buy, and how to be paid
back in the form that the investor wishes.
a. seal markets
b. investments
c. financial management
5. This subarea of finance looks at firm decisions in acquiring and utilizing cash received from
investors of from retained earnings.
a. Investments
b. financial management
c. treasury management
6. Financial management involves decisions about which of the following?
a. which projects to fond
b. how to minimize taxation
c. what type of capital should be raised
d. all of these choices are correct.
7. This subarea of finance helps facilitate the capital flows between investors and companies
a. Investments
b. financial management
c. treasury management
d. financial institutions and markets
1. The increase in oil production in the United States characterizes which of the following key
financial concepts presented in this book?
a. the Rule of 72
b. time value of money
c. risk and return
d. capital budgeting
2. Which of the following is not an impact of the slowdown occurring in China's economy?
a. lower demand in materials such as steel, iron ore, and copper
b. real estate market declining in Sydney, Australia
c. money going out of Manhattan, New York
d. falling community prices
3. Not all cash a company generates will be returned to the investors. Which of the following
will NOT reduce the amount of capital returned to the investors?
a. retained eamings
b. taxes
c. dividends
4. This subarea of finance involves methods and techniques to make appropriate decisions
about what kinds of securities to own, which firm’s securities to buy, and how to be paid
back in the form that the investor wishes.
a. seal markets
b. investments
c. financial management
5. This subarea of finance looks at firm decisions in acquiring and utilizing cash received from
investors of from retained earnings.
a. Investments
b. financial management
c. treasury management
6. Financial management involves decisions about which of the following?
a. which projects to fond
b. how to minimize taxation
c. what type of capital should be raised
d. all of these choices are correct.
7. This subarea of finance helps facilitate the capital flows between investors and companies
a. Investments
b. financial management
c. treasury management
d. financial institutions and markets
