Fin 201 Exam 1 Questions and Correct Answers
What are the 3 sub-specialties within finance?
- Corporate finance
- Investments
- Institutions
Corporate finance
- Goal is to maximize shareholder wealth for publicly traded forms or to maximize owner
wealth for privately held companies
- A financial manager works towards this goal by managing the investing and financing
functions of a firm
Investments
- One of the three main area of finance
- Involves choosing which assets to invest in
401(K)
A tax-sheltered retirement plan offered by some employers
Accounting
The business function responsible for creating the historical financial statements
Asset manager
A professional who makes a living managing a portfolio of assets
Asset pricing
The process of valuing assets
, Business finance
Another word for corporate finance
Capital budgeting anaysis
The process of deciding what assets to buy
Cash management
Managing the day-to-day finance operations of a firm
Certified financial planner
A professional who has passed he CFP examination
Chief Financial Officer
The highest ranking corporate finance officer in a firm
Commercial bank
A bank that focuses mostly on mid to large sized companies
Company/industry analysts
Professionals who produce reports on specific firms and industries
Consumer bank
A bank that focuses mostly on individuals, families, and small businesses
Consumer insurance
Life and property insurance
Corporate finance
The finance function within a business
What are the 3 sub-specialties within finance?
- Corporate finance
- Investments
- Institutions
Corporate finance
- Goal is to maximize shareholder wealth for publicly traded forms or to maximize owner
wealth for privately held companies
- A financial manager works towards this goal by managing the investing and financing
functions of a firm
Investments
- One of the three main area of finance
- Involves choosing which assets to invest in
401(K)
A tax-sheltered retirement plan offered by some employers
Accounting
The business function responsible for creating the historical financial statements
Asset manager
A professional who makes a living managing a portfolio of assets
Asset pricing
The process of valuing assets
, Business finance
Another word for corporate finance
Capital budgeting anaysis
The process of deciding what assets to buy
Cash management
Managing the day-to-day finance operations of a firm
Certified financial planner
A professional who has passed he CFP examination
Chief Financial Officer
The highest ranking corporate finance officer in a firm
Commercial bank
A bank that focuses mostly on mid to large sized companies
Company/industry analysts
Professionals who produce reports on specific firms and industries
Consumer bank
A bank that focuses mostly on individuals, families, and small businesses
Consumer insurance
Life and property insurance
Corporate finance
The finance function within a business
