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FIN2601 Assignment 1 Semester 2 2024
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QUESTIONS AND ANSWERS FIN2601 Assignment 1 Semester 2 2024
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[Date]FIN2601 Assignment
1 Semester 2 2024
QUESTIONS AND ANSWERS
, FIN2601 Assignment 1 Semester 2 2024
Question 1
Which of the following statements are correct if a company focuses on profits as
financial goal?
a) Risk is ignored.
b) The share price is ignored.
c) The size of the investment required to generate the profit is ignored.
1. a and b
2. c and a
3. b and c
4. a, b and c
Question 2
Which one of the following best describes a capital market?
1. A financial relationship created by institutions and arrangements that allow
suppliers and demanders of short-term funds to make transactions.
2. An intangible market for the purchase and sale of securities not listed on
organised exchanges.
3. A market that allocates funds to their most productive uses as a result of
competition among wealth-maximising investors.
4. A financial relationship created by institutions and arrangements that allow
suppliers and demanders of long-term funds to make transactions.
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