ENGINEERING ECONOMY EXAM 2 MOCK TEST
AND STUDY MATERIAL WITH COST ANALYSIS
AND DECISION-MAKING PROBLEMS PRACTICE
◉ Fair Market Value.
Answer: A price at which buyers and sellers with a reasonable
knowledge of pertinent facts and not acting under any compulsion
are willing to do business
◉ Distress Value.
Answer: Price Set by the buyer and seller on compulsion
◉ Capital.
Answer: Financial Resources deployed in an enterprise to produce
goods and services.
(e.g. Land, Building, equipment, money etc.)
◉ Equity.
Answer: Capital deployed in the form of ownership of an enterprise
◉ Debt.
, Answer: Borrowed capital deployed in the enterprise
◉ Liability.
Answer: An enterprise's legal debts or obligations that arise during
the course of business operations.
◉ Assets.
Answer: An economic resource of entity.
(including money resources, physical resources, and intangible
resources)
◉ Interest.
Answer: The charge for the privilege of borrowing money, typically
expressed as an annual percentage rate.
◉ Annuity.
Answer: A series of equal payments/receipts occurring at equal
periods of time.
Amount paid annually/monthly/semi-annually etc. including
reimbursement of borrowed capital and payment of interest.
AND STUDY MATERIAL WITH COST ANALYSIS
AND DECISION-MAKING PROBLEMS PRACTICE
◉ Fair Market Value.
Answer: A price at which buyers and sellers with a reasonable
knowledge of pertinent facts and not acting under any compulsion
are willing to do business
◉ Distress Value.
Answer: Price Set by the buyer and seller on compulsion
◉ Capital.
Answer: Financial Resources deployed in an enterprise to produce
goods and services.
(e.g. Land, Building, equipment, money etc.)
◉ Equity.
Answer: Capital deployed in the form of ownership of an enterprise
◉ Debt.
, Answer: Borrowed capital deployed in the enterprise
◉ Liability.
Answer: An enterprise's legal debts or obligations that arise during
the course of business operations.
◉ Assets.
Answer: An economic resource of entity.
(including money resources, physical resources, and intangible
resources)
◉ Interest.
Answer: The charge for the privilege of borrowing money, typically
expressed as an annual percentage rate.
◉ Annuity.
Answer: A series of equal payments/receipts occurring at equal
periods of time.
Amount paid annually/monthly/semi-annually etc. including
reimbursement of borrowed capital and payment of interest.
