Test your basic knowledge |

Managerial Finance

Subject : business-skills
Instructions:
  • Answer 50 questions in 15 minutes.
  • If you are not ready to take this test, you can study here.
  • Match each statement with the correct term.
  • Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.

This is a study tool. The 3 wrong answers for each question are randomly chosen from answers to other questions. So, you might find at times the answers obvious, but you will see it re-enforces your understanding as you take the test each time.
1. Agencies that assess the 'credit worthiness' of an organization. The two major rating agencies are Moody's and Standard & Poor.






2. Investors bid to buy shares - risk is on corporation

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183


3. Investment bank underwrites issuance - risk is on the investment bank






4. Mixture of debt and equity to finance long-term investments






5. Is usually applied to debt instruments such as bank loans or bonds; the compensation paid by the borrower of funds to the lender; from the borrower's point of view - the cost of borrowing funds.






6. The role of the investment banker in bearing the risk of reselling - at a profit - the securities purchased from an issuing corporation at an agreed-on price.






7. When interest is credited twice a year.






8. An unsecured type of bond that pays interest only when the debtor company has positive earnings.






9. Providers of venture capital; typically - formal businesses that maintain strong oversight over the firms they invest in and that have clearly defined exit strategies.






10. Privately raised external equity capital used to fund early-stage firms with attractive growth prospects.






11. The process of finding present values; the inverse of compounding interest






12. Day to day operations - how much cash to keep on hand - how much inventory to keep on hand - will we allow to buy on credit?






13. A widely cited dividend valuation approach that assumes that dividends will grow at a constant rate - but a rate that is less than the required return.






14. A rising trend in the prices of most goods and services






15. Type of bonds representing property put up as collateral






16. The actual rate of interest charged by the supplier of funds and paid by the demander






17. Investment bank does not underwrite - risk is on corporation

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183


18. The current dollar value of a future amount - the amount of money that would have to be invested today at a given interest rate over a specified period to equal the future amount.






19. Allows bondholders to change each bond into a stated number of shares of common stock






20. First time selling stock - indirectly with financial intermediary - indirectly with investment bank






21. Issued shares of common stock held by investors - this includes private and public investors.






22. Money flows directly from investor to corporation - $ flows from investor to corp through an investment bank ('privileged subscription')






23. Are provisions in a bond indenture that place operating and financial constraints on the borrower






24. Planning the long-term investments - $ coming in > $ going out






25. Periodic payments of profit to the shareholders






26. Shares of common stock that have been put into circulation. - = outstanding shares + treasury stock






27. Stock that gives its owners preference in the payment of dividends and an earlier claim on assets than common stockholders if the company is forced out of business and its assets sold.(not voted)






28. Is interest that is earned on a given deposit and has become part of the principal at the end of a specified period.






29. Interest compounds four times per year.






30. Is preferred stock with no stated face value but with a stated annual dollar dividend






31. Investment bank underwrites issuance - risk is on the investment bank - bid on shares






32. Wealthy individual investors who do not operate as a business but invest in promising early-stage companies in exchange for a portion of the firm's equity.






33. A statement transferring the votes of a stockholder to another party






34. A portion of a security registration statement that describes the key aspects of the issue - the issuer - and its management and financial position






35. Is preferred stock with a stated face value that is used with the specified dividend percentage to determine the annual dollar dividend.






36. All else equal - the longer the time to maturity - the greater the interest rate risk to the investor






37. Create wealth for the shareholders through maximizing the value of the firm by making financial decisions that will increase the price of common stock.






38. Price of assets traded fully reflect all available information - and investors must be rational






39. Selling stock anytime after initial time






40. The rate that creates equilibrium between the supply of savings and the demand for investment funds in a perfect world - without inflation - where suppliers and demanders of funds have no liquidity preferences and there is no risk






41. Authorized shares are the shares of common stock that a firm's corporate charter allows it to issue.






42. Preferred stock is preferred stock for which all passed (unpaid) dividends in arrears - along with the current dividend - must be paid before dividends can be paid to common stockholders






43. Ownership in a Corporation (stock)






44. The percentage of a bond's par value that will be paid annually - typically in two equal semiannual payments - as interest.






45. Is a complex and lengthy legal document stating the conditions under which a bond has been issued.






46. Shares of ownership in a public corporation. The shareholder has voting rights in the corporation.






47. Assumes that the stock will pay the same dividend each year - year after year






48. The risk that a company will be unable to pay the bond's face amount or interest payments as it becomes due.






49. The value at a given future date of an amount placed on deposit today and earning interest at a specified rate. Found by applying compound interest over a specified period of time.






50. A potential conflict of interest between outside shareholders (owners) and managers who make decisions about how to operate the firm.







Sorry!:) No result found.

Can you answer 50 questions in 15 minutes?


Let me suggest you:

Browse all subjects

Browse all tests

Most popular tests



Major Subjects

Tests & Exams


AP
CLEP
DSST
GRE
SAT
GMAT

Browse all subjects

Browse all tests

Most popular tests