Site MapHelpFeedbackMultiple Choice Quiz
Multiple Choice Quiz
(See related pages)

1
_________ is best referred to as the set of activities people and companies engages in to decide how to invest their capital so that it generates more cash, profit, and wealth.
A)Finance
B)Capital budgeting
C)Capital management
D)Capital financing
2
The extra reward investors demand for bearing the additional risks associated with a speculative investment is known as _________.
A)finance
B)capital budgeting
C)short-term capital management
D)a risk premium
3
Of the following statements, which one is inaccurate regarding business finance?
A)Capital lies at the heart of business finance and financial analysis.
B)Stockholders' equity is the main source of the capital a company uses to buy its assets.
C)Acquisition of company debt is never used to increase the company's assets.
D)Business finance is about increasing the rate of return on a company's invested capital.
4
The development of a financial plan and budget to manage and invest capital so that it leads to the highest return on invested capital that can be obtained is ________.
A)short-term capital management
B)capital investment and budgeting
C)business in action
D)long-term capital management
5
The financial decisions involved when a company chooses how to invest capital for extended periods of time is best classed as _________.
A)long-term capital management
B)finance
C)net present value analysis
D)long-term capital budgeting
6
Last year, the ABC Organization earned enough revenue to cover all the costs associated with its projects, but did not earn any profit. It can be stated the ABC Corporation was at a _______ last year.
A)breakeven point
B)net present value level
C)short-term capital budgeting level
D)leverage point
7
A set of rules for allocating funds to the different functions of a firm to achieve a predetermined rate of return on its investment is called a ______.
A)financial budget
B)leverage budget
C)capital budget
D)short-term capital budget
8
_________ is best identified as the development of a financial plan to allow a company to obtain the money it needs to fund its activities at the lowest possible cost.
A)Capital budgeting
B)Net present value analysis
C)Capital financing
D)Leverage
9
A short-term, unsecured loan a company can draw against as its accounts payable become due is called _________.
A)a line of credit
B)an unsecured loan
C)capital budgeting
D)hedge funds
10
The ability to use borrowed capital in ways that have the potential to lead to high rates of return is known as _______.
A)capital budgeting
B)commercial paper financing
C)leverage
D)debt securities





To learn more about the book this website supports, please visit its Information Center.
(c)2007 McGraw-Hill Higher Education
Any use is subject to the Terms of Use and Privacy Notice.
McGraw-Hill Higher Education is one of the many fine businesses of The McGraw-Hill Companies.


Introduction To Business, 1/eOnline Learning Center

Home > Chapter 15 > Multiple Choice Quiz