,Business finance - CORRECT ANSWERS-Which area of finance deals with sources of
funding and the capital structure of corporations and seeks to increase the value of a
firm to its owners?
Finance focuses on the future, while accounting is generally backward-looking. -
CORRECT ANSWERS-What is the primary difference between finance and
accounting?
Investments - CORRECT ANSWERS-Which subspecialty of finance primarily involves
deciding which assets will create more wealth and earn positive returns?
Investments - CORRECT ANSWERS-An area of finance that deals with investment
allocation and asset pricing.
Financial Institutions - CORRECT ANSWERS-An area of finance that involves
organizations that accept deposits, offer investment products, loan money, or broker
financial transactions.
Corporate Finance. - CORRECT ANSWERS-An area of finance that involves activities
used to increase shareholder wealth.
To maximize satisfaction from products purchased and services obtained - CORRECT
ANSWERS-What is the primary aim of personal finance goals?
Do the benefits of this investment outweigh the costs? - CORRECT ANSWERS-What
should be the main question a firm asks when considering any investment decision?
To maximize owner wealth - CORRECT ANSWERS-What is the primary goal of the
financial manager of a firm?
making investment decisions,
making financing decisions, and
managing working capital. - CORRECT ANSWERS-What are three main tasks that a
financial manager of a firm does in order to achieve the goal of the firm, which is to
maximize shareholder wealth?
CFO, Chief Financial Officer - CORRECT ANSWERS-Who is the highest ranking officer
in corporate finance?
The CFO is responsible for all the financial decisions made by the firm. He or she
serves as the CEO's right-hand person in all money matters and oversees the financial
analysis and decision-making of the firm. - CORRECT ANSWERS-What does the CFO
do?
Making investment decisions - CORRECT ANSWERS-Which task does a financial
manager perform when assessing the costs and benefits of potential projects?
, Private equity - CORRECT ANSWERS-Which financial career focuses on investing
capital into firms whose shares are not currently sold on any public stock exchange?
Making financing decisions - CORRECT ANSWERS-Which task does a financial
manager perform when choosing to obtain a loan to purchase a piece of equipment for
a new project?
Treasury, Corporate, and Stocks - CORRECT ANSWERS-What are the three most
important types of securities?
To protect Investors - CORRECT ANSWERS-Why does the SEC oversee Financial
Markets?
To provide liquidity and determine prices - CORRECT ANSWERS-What are the
purposes of financial markets?
Secondary market - CORRECT ANSWERS-In which financial market are securities
such as stocks and bonds are traded after their initial issuance?
Money market - CORRECT ANSWERS-What kind of market primarily allows institutions
to borrow and lend in the short term?
Primary market - CORRECT ANSWERS-A local start-up company just hit its five-year
anniversary and is planning an initial public offering sometime this year. In order to
issue public stock, which market will the company use?
An institution that accepts and pays interest on deposits of money, as well as extends
loans - CORRECT ANSWERS-What is a depository institution?
To conduct financial transactions such as investments, loans, and deposits - CORRECT
ANSWERS-What is the primary role of financial institutions?
Investment bank - CORRECT ANSWERS-A large corporation is looking to merge with
another large corporation. Which financial institution can help them do this?
Pension fund - CORRECT ANSWERS-Which type of financial institution deals mainly
with providing for retirement through employers?
They use returns from stocks and bonds. - CORRECT ANSWERS-How do insurance
companies pay policyholders when a claim is made?
Central bank - CORRECT ANSWERS-Which financial institution ensures that a nation's
economy remains healthy by controlling the amount of money circulating in the
economy?
funding and the capital structure of corporations and seeks to increase the value of a
firm to its owners?
Finance focuses on the future, while accounting is generally backward-looking. -
CORRECT ANSWERS-What is the primary difference between finance and
accounting?
Investments - CORRECT ANSWERS-Which subspecialty of finance primarily involves
deciding which assets will create more wealth and earn positive returns?
Investments - CORRECT ANSWERS-An area of finance that deals with investment
allocation and asset pricing.
Financial Institutions - CORRECT ANSWERS-An area of finance that involves
organizations that accept deposits, offer investment products, loan money, or broker
financial transactions.
Corporate Finance. - CORRECT ANSWERS-An area of finance that involves activities
used to increase shareholder wealth.
To maximize satisfaction from products purchased and services obtained - CORRECT
ANSWERS-What is the primary aim of personal finance goals?
Do the benefits of this investment outweigh the costs? - CORRECT ANSWERS-What
should be the main question a firm asks when considering any investment decision?
To maximize owner wealth - CORRECT ANSWERS-What is the primary goal of the
financial manager of a firm?
making investment decisions,
making financing decisions, and
managing working capital. - CORRECT ANSWERS-What are three main tasks that a
financial manager of a firm does in order to achieve the goal of the firm, which is to
maximize shareholder wealth?
CFO, Chief Financial Officer - CORRECT ANSWERS-Who is the highest ranking officer
in corporate finance?
The CFO is responsible for all the financial decisions made by the firm. He or she
serves as the CEO's right-hand person in all money matters and oversees the financial
analysis and decision-making of the firm. - CORRECT ANSWERS-What does the CFO
do?
Making investment decisions - CORRECT ANSWERS-Which task does a financial
manager perform when assessing the costs and benefits of potential projects?
, Private equity - CORRECT ANSWERS-Which financial career focuses on investing
capital into firms whose shares are not currently sold on any public stock exchange?
Making financing decisions - CORRECT ANSWERS-Which task does a financial
manager perform when choosing to obtain a loan to purchase a piece of equipment for
a new project?
Treasury, Corporate, and Stocks - CORRECT ANSWERS-What are the three most
important types of securities?
To protect Investors - CORRECT ANSWERS-Why does the SEC oversee Financial
Markets?
To provide liquidity and determine prices - CORRECT ANSWERS-What are the
purposes of financial markets?
Secondary market - CORRECT ANSWERS-In which financial market are securities
such as stocks and bonds are traded after their initial issuance?
Money market - CORRECT ANSWERS-What kind of market primarily allows institutions
to borrow and lend in the short term?
Primary market - CORRECT ANSWERS-A local start-up company just hit its five-year
anniversary and is planning an initial public offering sometime this year. In order to
issue public stock, which market will the company use?
An institution that accepts and pays interest on deposits of money, as well as extends
loans - CORRECT ANSWERS-What is a depository institution?
To conduct financial transactions such as investments, loans, and deposits - CORRECT
ANSWERS-What is the primary role of financial institutions?
Investment bank - CORRECT ANSWERS-A large corporation is looking to merge with
another large corporation. Which financial institution can help them do this?
Pension fund - CORRECT ANSWERS-Which type of financial institution deals mainly
with providing for retirement through employers?
They use returns from stocks and bonds. - CORRECT ANSWERS-How do insurance
companies pay policyholders when a claim is made?
Central bank - CORRECT ANSWERS-Which financial institution ensures that a nation's
economy remains healthy by controlling the amount of money circulating in the
economy?
