100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
D076 Unit 2 Practice Questions $14.88
Add to cart

Exam (elaborations)

D076 Unit 2 Practice Questions

 1 view  0 purchase
  • Course
  • Institution

Which area of finance deals with sources of funding and the capital structure of corporations and seeks to increase the value of a firm to its owners? -Business finance -Real estate -Investments -Financial institutions - A What is the primary difference between finance and accounting? -Accou...

[Show more]

Preview 3 out of 20  pages

  • February 3, 2024
  • 20
  • 2023/2024
  • Exam (elaborations)
  • Questions & answers
avatar-seller
D076 Unit 2 Practice Questions
Which area of finance deals with sources of funding and the capital structure of corporations and seeks
to increase the value of a firm to its owners?

-Business finance

-Real estate

-Investments

-Financial institutions - ✔✔A



What is the primary difference between finance and accounting?

-Accounting involves investing and forecasting, while finance summarizes a company's financial
information.

-Finance provides financial data to decision makers, and accounting involves making decisions using that
data.

-Finance focuses on the future, while accounting is generally backward-looking.

-Accounting focuses on the future, while finance is generally backward-looking. - ✔✔A



Which subspecialty of finance primarily involves deciding which assets will create more wealth and earn
positive returns?

-Capital structure

-Investments

-Accounting

-Financial institutions - ✔✔B



What is the primary goal of the financial manager of a firm?

-To maximize the manager's utility

-To minimize the asset holdings of the firm

-To maximize owner wealth

,-To minimize the costs of the firm - ✔✔C



What should be the main question a firm asks when considering any investment decision?

-What is the best investment in the stock market?

-Do the benefits of this investment outweigh the costs?

-Will this investment add value to the firm?

-Will this investment help the company reduce costs? - ✔✔B



What is the primary aim of personal finance goals?

-To maximize satisfaction from products purchased and services obtained

-To create more wealth and returns on investments

-To increase consumption of goods and services

-To maximize shareholders' utility by increasing a firm's value - ✔✔A



Which task does a financial manager perform when choosing to obtain a loan to purchase a piece of
equipment for a new project?

-Making credit standard decisions

-Making inventory control decisions

-Making financing decisions

-Making investment decisions - ✔✔C



Which financial career focuses on investing capital into firms whose shares are not currently sold on any
public stock exchange?

-Insurance

-Financial planning

-Corporate finance

, -Private equity - ✔✔D



Which task does a financial manager perform when assessing the costs and benefits of potential
projects?

-Managing working capital

-Implementing financial policies

-Making financing decisions

-Making investment decisions - ✔✔D



What tool can you use to understand your overall personal cash flows?

-Budgeting

-Investing

-Setting financial goals

-Saving - ✔✔A



What is a reasonable alternative to keeping an emergency stash of cash?

-Investing in long-term bonds

-Investing the money in a nicer car

-Investing in a savings account

-Investing in high-risk growth stocks - ✔✔C



You want to buy a house, so you obtain a mortgage for which you can afford the monthly payments.
What process have you engaged in as part of your financial decision-making?

-Financing

-Assessing

-Investing

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller jessyqueen. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $14.88. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

52510 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
$14.88
  • (0)
Add to cart
Added