BFIN 300 Test- Questions with Correct Verified
Answers
Goodwill
purchase price + shareholders' equity
Liquidity
Speed of which assets turn into cash.
_____________ _____are best with the ease of conversion and best loss of value, meaning
high _________________
securities, liquidity
one way a bank would fail is...
lack of liquidity
Use of debt in companies' capital structure
Financial Leverage
debt acts as a _________
lever (what the business paid for asset)
Capital Budgeting
Identifying investment opportunities (ROI) return on investment (buying equipment)
Capital Structure
Financing decisions (debt + equity)
,Working Capital Management deals with...
Short Term Liabilities (ex. CASH)
Primary Market
Securities sold for the first time
Secondary Market
-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...
a need for product and effective delivery/strategy
Corperate Finance
relationship between business decisions and how effective
Managers include.
CFO, COO, Treasurer, CEO
Types of business
sole proprietorship, partnership, corporation (most important)
Limited Partership (silent)
is not involved in participation within a partnership.
double taxation
, paying income taxes on some source of income
Goals of Financial Management which maximize shareholders value
-survive
-avoid distress
-maximize sales and profits
Cooperate Finance
study of how business decisions and how it impacts the value of the business.
Agency
Managements relationship with shareholders a (representing them)
Shareholders love...
dividends
Proxy
agent given authority
Finance
study of creation and management of wealth
3 topics in the field of finance
1. Corporate 2. Investments 3. Financial markets
Corporations have _______% revenue over all other types
80
Answers
Goodwill
purchase price + shareholders' equity
Liquidity
Speed of which assets turn into cash.
_____________ _____are best with the ease of conversion and best loss of value, meaning
high _________________
securities, liquidity
one way a bank would fail is...
lack of liquidity
Use of debt in companies' capital structure
Financial Leverage
debt acts as a _________
lever (what the business paid for asset)
Capital Budgeting
Identifying investment opportunities (ROI) return on investment (buying equipment)
Capital Structure
Financing decisions (debt + equity)
,Working Capital Management deals with...
Short Term Liabilities (ex. CASH)
Primary Market
Securities sold for the first time
Secondary Market
-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...
a need for product and effective delivery/strategy
Corperate Finance
relationship between business decisions and how effective
Managers include.
CFO, COO, Treasurer, CEO
Types of business
sole proprietorship, partnership, corporation (most important)
Limited Partership (silent)
is not involved in participation within a partnership.
double taxation
, paying income taxes on some source of income
Goals of Financial Management which maximize shareholders value
-survive
-avoid distress
-maximize sales and profits
Cooperate Finance
study of how business decisions and how it impacts the value of the business.
Agency
Managements relationship with shareholders a (representing them)
Shareholders love...
dividends
Proxy
agent given authority
Finance
study of creation and management of wealth
3 topics in the field of finance
1. Corporate 2. Investments 3. Financial markets
Corporations have _______% revenue over all other types
80
