Advanced Corporate Finance Exam 1
ACTUAL Exam Questions and CORRECT
Answers
x - CORRECT ANSWER - Fingame managers need to have knowledge of finance,
accounting, economics, and production management in order to succeed in the simulation.
x - CORRECT ANSWER - Each Fingame company begins with its own unique mix of
funding and assets, so each management team begins with a different set of circumstances.
x - CORRECT ANSWER - The manual suggests that one should read the entire manual
before beginning the simulation.
x - CORRECT ANSWER - In the Fingame simulation, all companies produce the same
generic product for which no market details are given.
x - CORRECT ANSWER - The Fingame simulation is interactive thus, the decisions and
the performance of each Fingame company cause changes in the environment faced by other
Fingame companies in the simulation.
x - CORRECT ANSWER - Chapter 2 of the Fingame Participants Manual is mostly about
the detailed rules concerning the way in which a Fingame company depreciates its fixed assets.
x - CORRECT ANSWER - Quarter 1 in Fingame is used to generate the starting company
that is the same for all Fingame participants.
x - CORRECT ANSWER - Fingame student managers must operate in an uncertain
environment in which the manager has incomplete information about the future operating
environment.
, x - CORRECT ANSWER - The manual suggests that student Fingame managers should
read just the first 2 chapters of the manual before beginning to make decisions for their
companies.
x - CORRECT ANSWER - Fingame provides a decision making setting similar in many
respects to the financial management requirements of an actual company.
x - CORRECT ANSWER - In any given semester of simulation, based on the semester
specific Fingame economic environment, there is only one correct policy for maximizing
shareholder wealth.
x - CORRECT ANSWER - The main screen in Fingame will specify the simulation type as
Actual or ProForma even if the website ProForma capability has not been activated.
x - CORRECT ANSWER - Once the actual simulation has been run, the decisions cannot
be changed (unless the instructor intervenes).
x - CORRECT ANSWER - A Fingame manager cannot join a Fingame group unless he or
she has been provided with the group code to register membership in a specific group.
x - CORRECT ANSWER - Fingame managers can view his or her own financial
statements, but never the financial results of other Fingame companies.
x - CORRECT ANSWER - It is possible to print a hard copy of the simulation output
generated by the Fingame website.
x - CORRECT ANSWER - The manual suggests that one can advance at least halfway
through the simulation before a full understanding of the construction of the financial statements
is necessary.
x - CORRECT ANSWER - In Fingame, demand is always price-inelastic.
ACTUAL Exam Questions and CORRECT
Answers
x - CORRECT ANSWER - Fingame managers need to have knowledge of finance,
accounting, economics, and production management in order to succeed in the simulation.
x - CORRECT ANSWER - Each Fingame company begins with its own unique mix of
funding and assets, so each management team begins with a different set of circumstances.
x - CORRECT ANSWER - The manual suggests that one should read the entire manual
before beginning the simulation.
x - CORRECT ANSWER - In the Fingame simulation, all companies produce the same
generic product for which no market details are given.
x - CORRECT ANSWER - The Fingame simulation is interactive thus, the decisions and
the performance of each Fingame company cause changes in the environment faced by other
Fingame companies in the simulation.
x - CORRECT ANSWER - Chapter 2 of the Fingame Participants Manual is mostly about
the detailed rules concerning the way in which a Fingame company depreciates its fixed assets.
x - CORRECT ANSWER - Quarter 1 in Fingame is used to generate the starting company
that is the same for all Fingame participants.
x - CORRECT ANSWER - Fingame student managers must operate in an uncertain
environment in which the manager has incomplete information about the future operating
environment.
, x - CORRECT ANSWER - The manual suggests that student Fingame managers should
read just the first 2 chapters of the manual before beginning to make decisions for their
companies.
x - CORRECT ANSWER - Fingame provides a decision making setting similar in many
respects to the financial management requirements of an actual company.
x - CORRECT ANSWER - In any given semester of simulation, based on the semester
specific Fingame economic environment, there is only one correct policy for maximizing
shareholder wealth.
x - CORRECT ANSWER - The main screen in Fingame will specify the simulation type as
Actual or ProForma even if the website ProForma capability has not been activated.
x - CORRECT ANSWER - Once the actual simulation has been run, the decisions cannot
be changed (unless the instructor intervenes).
x - CORRECT ANSWER - A Fingame manager cannot join a Fingame group unless he or
she has been provided with the group code to register membership in a specific group.
x - CORRECT ANSWER - Fingame managers can view his or her own financial
statements, but never the financial results of other Fingame companies.
x - CORRECT ANSWER - It is possible to print a hard copy of the simulation output
generated by the Fingame website.
x - CORRECT ANSWER - The manual suggests that one can advance at least halfway
through the simulation before a full understanding of the construction of the financial statements
is necessary.
x - CORRECT ANSWER - In Fingame, demand is always price-inelastic.
