Chapter 1

VCHAPTER 1 QUESTIONS WITH
CORRECT DETAILED ANSWERS

Which of the following is NOT one of the basic areas of finance?



- Investments

- Corporate Finance

- Financial Institutions

- Personal Finance

- International Finance - 4. Personal Finance

One of the important questions in the area of investments includes the potential risks and reward
associated with investing in ______________ assets. - financial

Which of the following positions generally report to the chief financial officer (CFO)?



- Director of Marketing

- Chief Executive Officer (CEO)

- Controller

- Treasurer - Controller and Treasurer

The __________ office responsible for corporate tax reporting.



- Controller's

- Treasurer's

- Ombudsman's

- Chief Operating Officer's - Controller's

A treasurer's responsibilities typically include:



- making financial plans

, - handling cash flows

- managing capital expenditure decisions

- financial accounting - - making financial plans

- handling cash flows

- managing capital expenditure decisions

What three questions are the financial manager concerned with?



- working capital management

- capital structure

- capital budgeting

- designing new products - - working capital management

- capital structure

- capital budgeting

Capital budgeting is concerned with making and managing expenditures on ____________ ?



- current assets

- long - term assets

- long - term liabilities

- current liabilities - - long - term assets

Which term applies to the mixture of debt and equity maintained by a firm?



- Net working capital

- Cash management

- Capital Budget

- Capital structure - - Capital structure

Ensuring that the firm has sufficient funds to continue operations of day-to-day basis comes under the
heading of _____ management.



- working capital