C214 Financial Management Overview Concept Questions & Answers (74 Terms) A+ Score Solution .

C214 Financial Management Overview Concept Quiz Answers




C214 Financial Management Overview
Concept Questions & Answers (74
Terms) A+ Score Solution 2023-2024.

, C214 Financial Management Overview Concept Quiz Answers


1. The goal of the corporation is to:
a. Maximize profits
b. Maximize market share
c. Maximize stock price
d. Minimize risk - Answers: c. Maximize stock price


2. Risk premium is best described as
a. Return on risky securities
b. Compensation for risk-taking
c. Return on stocks
d. Expected return on securities - Answers: b. Compensation for risk-
taking


3. What is the relationship between risk and 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 - Answers: c. Higher risk causes higher required
return


4. The value of money depends upon
a. The timing of the receipt

, C214 Financial Management Overview Concept Quiz Answers


b. The certainty of receipt
c. The size of the receipt
d. All of the above - Answers: d. All of the above


5. What is the purpose of the SEC 10-K filing requirement?
a. Promote transparency and efficiency
b. Prevent insider trading
c. Regulate sales practices
d. Prevent monopolies - Answers: a. Promote transparency and
efficiency


6. Which line item is not part of net working capital?
a. Inventory
b. Bonds
c. Accounts Payable
d. Accrued expenses - Answers: b. Bonds


7. Which action causes a cash outflow?
a. Increase in accounts payable
b. Decrease in accounts receivable
c. Increase in inventory
d. None of the above - Answers: c. Increase in inventory