Question

1. Which of the following is NOT another name for corporate finance?

Quantitative Finance

Business Finance

Financial Management

Managerial Finance

2. The most common type of business form in the U.S. is:

partnership.

sole proprietorship.

Corporations.

LLC.

3. The function of financial markets and institutions is:

to facilitate the flow of funds through the economy.

to look at decisions in firms from the financial manager's point of view.

to create economical booms and recessions.

to manage portfolios of investors.

4. Finance originally grew from:

accounting.

mathematics.

economics.

statistics.

All of the above.

5. Investments is taught from:

the market's point of view.

the corporation's point of view.

the portfolio manager's point of view.

the investor's point of view.

6. Which of the following deals mainly with the people issues of a firm?

Finance

Operations

OB/HR

Accounting

7. Profit maximization fails to provide an appropriate goal for financial managers because

it lacks a time dimension

it ignores risk

the calculation of "profit" is easily manipulated

profit has no clear relationship to value

all of the above

8. Which of the following would a corporate finance professional typically NOT work with?

Cash management

Supply chain management

Investing and financing decisions

Financial policy implementation

Tax strategies

9. 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?

FPM CPA CFA CFP 10. Portfolio decisions consist of: what asset classes to invest in. which asset to invest in. how much to invest in each asset. All of the above.

Answer 1

I have highlighted the correct answer in bold and underline.

1. Which of the following is NOT another name for corporate finance?

Quantitative Finance - This is a higher / advance topic / subject in Mathematics.

Business Finance

Financial Management

Managerial Finance

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2. The most common type of business form in the U.S. is:

partnership.

sole proprietorship.

Corporations.

LLC. - Reason being slightly liberal and informal rules & regulations they are subjected to and they have protective characteristics

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3. The function of financial markets and institutions is:

to facilitate the flow of funds through the economy - the financial markets and institutions attempts to ensure circulation of funds across the economy.

to look at decisions in firms from the financial manager's point of view.

to create economical booms and recessions.

to manage portfolios of investors.

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4. Finance originally grew from:

accounting - At many a place, the relationship is still so strong that Finance & Accounts are treated as one department / functional area.

mathematics.

economics.

statistics.

All of the above.

=========================

5. Investments is taught from:

the market's point of view.

the corporation's point of view.

the portfolio manager's point of view.

the investor's point of view. - that's the reason why NPV, IRR, risk evaluation etc are calculated from the perspective of a neutral but rational investor.

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6. Which of the following deals mainly with the people issues of a firm?

Finance

Operations

OB/HR - this department deals with issues and behavior of human capital in the organization.

Accounting

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7. Profit maximization fails to provide an appropriate goal for financial managers because

it lacks a time dimension

it ignores risk

the calculation of "profit" is easily manipulated

profit has no clear relationship to value

all of the above - Profit on an accrual basis, ignores cash flows, timelines of cash flows, time value of cash flows, riskiness of the cash flows. Profitability alone may not ensure valuation or value creation.

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8. Which of the following would a corporate finance professional typically NOT work with?

Cash management

Supply chain management - An operations manager will typically work in this area.

Investing and financing decisions

Financial policy implementation

Tax strategies

===================

9. 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?

FPM

CPA

CFA

CFP - stands for Certified Financial Planner

==================

10. Portfolio decisions consist of:

what asset classes to invest in.

which asset to invest in.

how much to invest in each asset.

All of the above. - A portfolio manager has to decide which asset class to invest into; which assets to invest in, within each asset class; allocation of investment amount across assets and asset classes and so on.