BUSINESS FINANCE QUESTIONS WITH
CORRECT ANSWERS 2026-2027
Business - CORRECT ANSWER -
an entity in which the skills, energy, and enterprise of owners and partners are linked with mo
ney, its sources and investment, and its success is measured by wealth or profit the business ge
ts.
Finance - CORRECT ANSWER -
e involves the ways people and organizations raise and allocate capital, use monetary resource
s, and account for the risks involved. It is also the study of how to value all sorts of things such
as valuation of a business enterprise, payments left on mortgage property, purchase of an entir
e company, or a personal decision to retire early (Gitman & Zutter, 2012).
managerial finance, corporate finance, and business finance - CORRECT ANSWER -
Financial management, also referred as?
Financial Management - CORRECT ANSWER -a decision-
making process concerned with planning, acquiring, and utilizing funds in a manner that achiev
es the firms desired goals.
Budgeting - CORRECT ANSWER -
the act of estimating revenue and the expenses over a period of time.
Financing - CORRECT ANSWER -
used to determine the appropriate capital structure of the company and to raise funds from de
bt and equity
Sole Proprietorship - CORRECT ANSWER -
refers to a business owned by one person and operated for his or her profit
, Partnership - CORRECT ANSWER -
means that a business is owned by two or more people and operated for profit
Corporation - CORRECT ANSWER -an entity created by law and owned by shareholders.
Buying stocks - CORRECT ANSWER -How can a person be a shareholder of a corporation?
Privately owned corporations - CORRECT ANSWER -
often owned by family members whose stocks may not be offered to outsiders unless consent
by the family members is secured.
Publicly listed - CORRECT ANSWER -
owned by unrelated investors and are traded in organized exchanges like the Philippine Stocks
Exchange.
Wealth maximization - CORRECT ANSWER -Overall objective of a shareholder
Controllable by Management - CORRECT ANSWER -profitability
Controllable by Management - CORRECT ANSWER -
having a good liquidity and reasonable leverage position
Controllable by Management - CORRECT ANSWER -dividends
Controllable by Management - CORRECT ANSWER -
competent management which affects the company's operating efficiency
CORRECT ANSWERS 2026-2027
Business - CORRECT ANSWER -
an entity in which the skills, energy, and enterprise of owners and partners are linked with mo
ney, its sources and investment, and its success is measured by wealth or profit the business ge
ts.
Finance - CORRECT ANSWER -
e involves the ways people and organizations raise and allocate capital, use monetary resource
s, and account for the risks involved. It is also the study of how to value all sorts of things such
as valuation of a business enterprise, payments left on mortgage property, purchase of an entir
e company, or a personal decision to retire early (Gitman & Zutter, 2012).
managerial finance, corporate finance, and business finance - CORRECT ANSWER -
Financial management, also referred as?
Financial Management - CORRECT ANSWER -a decision-
making process concerned with planning, acquiring, and utilizing funds in a manner that achiev
es the firms desired goals.
Budgeting - CORRECT ANSWER -
the act of estimating revenue and the expenses over a period of time.
Financing - CORRECT ANSWER -
used to determine the appropriate capital structure of the company and to raise funds from de
bt and equity
Sole Proprietorship - CORRECT ANSWER -
refers to a business owned by one person and operated for his or her profit
, Partnership - CORRECT ANSWER -
means that a business is owned by two or more people and operated for profit
Corporation - CORRECT ANSWER -an entity created by law and owned by shareholders.
Buying stocks - CORRECT ANSWER -How can a person be a shareholder of a corporation?
Privately owned corporations - CORRECT ANSWER -
often owned by family members whose stocks may not be offered to outsiders unless consent
by the family members is secured.
Publicly listed - CORRECT ANSWER -
owned by unrelated investors and are traded in organized exchanges like the Philippine Stocks
Exchange.
Wealth maximization - CORRECT ANSWER -Overall objective of a shareholder
Controllable by Management - CORRECT ANSWER -profitability
Controllable by Management - CORRECT ANSWER -
having a good liquidity and reasonable leverage position
Controllable by Management - CORRECT ANSWER -dividends
Controllable by Management - CORRECT ANSWER -
competent management which affects the company's operating efficiency
