Question

Which of the following is NOT given as an example of an Institution's setting?

Consumer Bank Commercial Bank Insurance Company Pension Company All of the above are mentioned as examples.

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The appropriate goal of the financial manager is to maximize the firm's profits.

True False

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Finance is:

the process of interesting potential customers and clients in your products/services. a plan of action or policy designed to achieve a major or overall aim of a firm. the science of money management methods of raising funds and managing money. the detailed coordination of a complex operation involving many people, facilities, or supplies. the study of accumulating and reporting on financial information about the performance, financial position, and cash flows of a business.

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Finance originally grew from:

accounting. mathematics. economics. statistics. All of the above.

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Which of the following is NOT mentioned as an area in which an asset manager may invest when we think of the Investments sub-field?

PP&E Venture capital Mutual funds Real estate All of the above

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Which of the following business entities is subject to double taxation?

Corporation. All of the above LLC. Partnership.

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Investments is taught from:

the portfolio manager's point of view. the corporation's point of view. the investor's point of view. the market's point of view.

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If you are interested in working as a financial planner, or want to hire someone to manage your personal assets, which professional designation does the text mention is important?

CFP CFA CPA FPM

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The text mentions some historical investment banks. Which of the following is NOT one of them?

Goldman Sachs Zions International Merrill Lynch Morgan Stanley Lehman Brothers

Answer 1

1..All of the above are mentioned as examples.

All of them are institutions carried on by groups of people, under certain well-defined charter of operations or frame-work & survive even after any of them, leave.

2..The appropriate goal of the financial manager is to maximize the firm's profits.

TRUE

This is the goal of financial management & the financial manager is the person responsible for organising things to manage the financial affairs, such as entring into transactions,properly recording,analysing &intrepreting resukts for the purpose of achieving optimisation of operations, to create maximum wealth for the owners/shareholders of a business entity.

3..Finance is

the study of accumulating and reporting on financial information about the performance, financial position, and cash flows of a business.

4..All of the above.

Finance uses accounting or recording financial transactions.

It uses mathematics in dealing with numbers which play an integral part in finance,to do the above accounting or recording.

It also employs the economic concepts ,in the process of creation & study of money ,as well as assets & liabilities.

Finance requires the science of statistics , which is all about data collection for purposes of analysis & intrepretation, aimed at better financial performance.

5..Venture Capital

It is the funds given for starting a new business--ie. Start-up capital--as the investment amount will be heavy & also may take long period of time to reap back .

6.Business entities is subject to double taxation

Corporation

C-Corporation is subject to double taxation, ie.it pays corporateincome taxes & then distributes the profit to the owners as dividends who again have to pay personal income taxes on the amount so paid to them.

7..Investments is taught from:

the investor's point of view

so as to maximise his income in the shortest period of time ,with less risks.

ie. Less risk & more returns.

8.. CFP

A qualified & Certified Financial Planner wil be able to make the most of the financial resources available, by staying in touch with the changing market conditions & advises accordingly.

9..Zions International

It is a bank with international operations ,boosting global trade & other opportunities to businesses of all sizes--like import/export letters of credit & trade payables finance.

All others are investment banks.