©THESTAR 2024/2025 ALL RIGHTS RESERVED 11:08AM.
BFIN 300 Exam Questions And Answers
|Latest 2025 | Guaranteed Pass.
Goodwill - Answer✔purchase price + shareholders' equity
Liquidity - Answer✔Speed of which assets turn into cash.
_____________ _____are best with the ease of conversion and best loss of value, meaning high
_________________ - Answer✔securities, liquidity
one way a bank would fail is... - Answer✔lack of liquidity
Use of debt in companies' capital structure - Answer✔Financial Leverage
debt acts as a _________ - Answer✔lever (what the business paid for asset)
Capital Budgeting - Answer✔Identifying investment opportunities (ROI) return on investment
(buying equipment)
Capital Structure - Answer✔Financing decisions (debt + equity)
Working Capital Management deals with... - Answer✔Short Term Liabilities (ex. CASH)
Primary Market - Answer✔Securities sold for the first time
Secondary Market - Answer✔-Stock exchange, Broker acts as agent (matching buyers and
sellers)
-Dealer market (buys stocks from home)
-Broker acts as agent
What is the number one thing that successful business have... - Answer✔a need for product
and effective delivery/strategy
Corperate Finance - Answer✔relationship between business decisions and how effective
Managers include. - Answer✔CFO, COO, Treasurer, CEO
1
, ©THESTAR 2024/2025 ALL RIGHTS RESERVED 11:08AM.
Types of business - Answer✔sole proprietorship, partnership, corporation (most important)
Limited Partership (silent) - Answer✔is not involved in participation within a partnership.
double taxation - Answer✔paying income taxes on some source of income
Goals of Financial Management which maximize shareholders value - Answer✔-survive
-avoid distress
-maximize sales and profits
Cooperate Finance - Answer✔study of how business decisions and how it impacts the value of
the business.
Agency - Answer✔Managements relationship with shareholders a (representing them)
Shareholders love... - Answer✔dividends
Proxy - Answer✔agent given authority
Finance - Answer✔study of creation and management of wealth
3 topics in the field of finance - Answer✔1. Corporate 2. Investments 3. Financial markets
Corporations have _______% revenue over all other types - Answer✔80
3 advantages of Corporations... - Answer✔1. Limited Liability
2. ability to raise capital
3. easy transfer of ownership
Goal of any corporation is to... - Answer✔Create value to stockholders
accounting focusses on ______ - Answer✔past
Finance focusses on_________ - Answer✔future
what does the financial statement analysis do? - Answer✔Identifies company's strengths and
weaknesses.
Creditors - Answer✔concerned about the ability to make interest on borrowed funds
stockholders - Answer✔interested in firms future prospects
What does the financial statement show us on its own? - Answer✔Nothing, they are just
snapshots
Balance sheet equation - Answer✔Assets = Liabilities + Stockholders' Equity
2
BFIN 300 Exam Questions And Answers
|Latest 2025 | Guaranteed Pass.
Goodwill - Answer✔purchase price + shareholders' equity
Liquidity - Answer✔Speed of which assets turn into cash.
_____________ _____are best with the ease of conversion and best loss of value, meaning high
_________________ - Answer✔securities, liquidity
one way a bank would fail is... - Answer✔lack of liquidity
Use of debt in companies' capital structure - Answer✔Financial Leverage
debt acts as a _________ - Answer✔lever (what the business paid for asset)
Capital Budgeting - Answer✔Identifying investment opportunities (ROI) return on investment
(buying equipment)
Capital Structure - Answer✔Financing decisions (debt + equity)
Working Capital Management deals with... - Answer✔Short Term Liabilities (ex. CASH)
Primary Market - Answer✔Securities sold for the first time
Secondary Market - Answer✔-Stock exchange, Broker acts as agent (matching buyers and
sellers)
-Dealer market (buys stocks from home)
-Broker acts as agent
What is the number one thing that successful business have... - Answer✔a need for product
and effective delivery/strategy
Corperate Finance - Answer✔relationship between business decisions and how effective
Managers include. - Answer✔CFO, COO, Treasurer, CEO
1
, ©THESTAR 2024/2025 ALL RIGHTS RESERVED 11:08AM.
Types of business - Answer✔sole proprietorship, partnership, corporation (most important)
Limited Partership (silent) - Answer✔is not involved in participation within a partnership.
double taxation - Answer✔paying income taxes on some source of income
Goals of Financial Management which maximize shareholders value - Answer✔-survive
-avoid distress
-maximize sales and profits
Cooperate Finance - Answer✔study of how business decisions and how it impacts the value of
the business.
Agency - Answer✔Managements relationship with shareholders a (representing them)
Shareholders love... - Answer✔dividends
Proxy - Answer✔agent given authority
Finance - Answer✔study of creation and management of wealth
3 topics in the field of finance - Answer✔1. Corporate 2. Investments 3. Financial markets
Corporations have _______% revenue over all other types - Answer✔80
3 advantages of Corporations... - Answer✔1. Limited Liability
2. ability to raise capital
3. easy transfer of ownership
Goal of any corporation is to... - Answer✔Create value to stockholders
accounting focusses on ______ - Answer✔past
Finance focusses on_________ - Answer✔future
what does the financial statement analysis do? - Answer✔Identifies company's strengths and
weaknesses.
Creditors - Answer✔concerned about the ability to make interest on borrowed funds
stockholders - Answer✔interested in firms future prospects
What does the financial statement show us on its own? - Answer✔Nothing, they are just
snapshots
Balance sheet equation - Answer✔Assets = Liabilities + Stockholders' Equity
2
