FIN2603 Exam Pack 2023.

FIN2603 Exam Pack 2023. The part of finance concerned with design and delivery of advice and financial products to individuals, businesses and the government is called ...  A. managerial finance.  B. financial advice.  C. financial services.  D. financial planning. Answer Key:C Question 2 of 20 1.0 Points What financial securities are likely to be traded on the JSE Limited?  A. Ordinary shares  B. Treasury bills  C. Commercial paper  D. Company bonds Answer Key:A Question 3 of 20 1.0 Points The primary goal of a publicly-owned firm interested in serving its shareholders should be to ...  A. minimise the debt used by the firm.  B. maximise the EPS.  C. maximise the share price.  D. maximise the expected net income. Answer Key:B Question 4 of 20 1.0 Points Any organisation that is managed in accordance with business principles should be able to ensure its survival because it will ...  A. maximise its revenue from sales and control its expenses.  B. plan its cash inflows and outflows by means of a cash budget.  C. keep its cost of financing as low as possible.  D. undertake all the above-mentioned financial measures. Answer Key:D Question 5 of 20 1.0 Points The primary short-term financial goal of the firm may be best achieved by ...  A. maximising revenue and minimising expenses.  B. minimising the cost of capital and maximising the internal rate of return (IRR).  C. increasing expenses in order to reduce the firm’s tax liability.  D. accelerating cash inflows and delaying cash outflows. Answer Key:A Part 2 of 3 - Section 2 10.0 Points Question 6 of 20 1.0 Points A firm’s cash inflow becomes more predictable as the ...  A. current ratio increases.  B. return on owners’ equity increases.  C. current liabilities decrease.  D. current assets decrease. Answer Key:D Question 7 of 20 1.0 Points If accounts receivable increase by R600, inventory increases by R100 and accounts payable increase by R400, net working capital would ...  A. decrease by R300.  B. increase by R300.  C. increase by R700.  D. remain unchanged. Answer Key:B Question 8 of 20 1.0 Points With which type of funds would an organisation typically finance temporary current assets?  A. Long-term debt  B. Equity  C. Preference shares  D. Short-term debt Answer Key:D.