1. Shareholders invest their _____ in the shares of a company in the

expectation of a return on their invested capital.

a) Business

b) Life

c) Company

d) Money

2. A company can also obtain equity funds by retaining earnings available for

_____.

a) Shareholders

b) Partners

c) Company

d) Stock

3. Liquidity of an enterprise is affected by the level of _____ of current assets.

a) Management

b) Consumers

c) Customers

d) Sales

4. Dangers from fire, flood, storm, theft, etc. have always threatened and still

threaten the benefit of the fruits of business enterprise.

TRUE / FALSE

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5. The Treasurer is an active participant in _____-range financial planning.

a) Middle

b) Short

c) Long

d) All the above

6. _____ produces goods and services desired by the community in which they serve as efficiently as possible.

a) Company

b) Firms

c) Producer

d) Manufacturer

7. Price mechanism (system) is a vital organ of a market economy, showing

the goods and services required in the _____.

a) Market

b) Community

c) Country

d) Economy

8. _____ may be defined as the provision of money at the time it is required.  

a) Firm

b) Forecasting

c) Finance

d) Fund

9. _____ requires an enterprise to hold cash to perform it ordinary business

activities.

Ans. Transaction Motive

10. _____ shows the present statement of a business.

a) Ledger

b) Double entry

c) Cash book

d) Balance sheet

11. As an/a _____, the finance manager now shapes the fortunes of the firm

and he is involved in the most vital decision of allocation of capital.

a) Organization

b) Firm

c) Company

d) Adviser

12. Profit planning is an aid to anticipating the relationships between _____,

costs and profits.

a) Production

b) Volume

c) All the above

d) None of the above

13. Financial statement analysis is used for _____ purposes

a) Three

b) Four

c) Five

d) Two

14. _____ liabilities are a company’s short-term financial obligations that are due within one year or a normal operating cycle.

Ans. Current

15. Profit planning is related to considering _____ main factors

a) Two

b) Four

c) One

d) Three

16. Gitman _____ defines finance as the art and science of managing money.

a) 2004

b) 2000

c) 2010

d) 2008

17. _____ is used to cast forward the past performance into the future.

Ans. Forecasting

18. The dividend policy is determined by its impact on the _____’s value.

a) Company

b) Business

c) Shareholder

d) Personal

19. Internal Finance, also known as equity fund/finance, is referred to as

_____.

a) Equity

b) Fund

c) Finance

d) All the above

20. _____ markets are for physical or tangible assets such as plants, machinery, wheat, office, gold, buildings, etc.

a) Real

b) Business

c) Good

d) Economy

21. Finance functions have been acknowledged as a major in most

organizations.

TRUE / FALSE

22. Finance can be classified into two broad categories, namely: _____ and _____ finance

a) Mini, mano

b) Nano, macro

c) Micro, mini

d) Micro, macro

23. All but one is not a factor related to profit planning

a) fixed costs

b) variable costs

c) selling price

d) firm volume

24. The firm needs to invest sufficient funds in current assets in order to become _____.

a) Useful

b) Liquid

c) monetized

d) Effective

25. You should know that all business activities, directly or

indirectly, involve the acquisition and utilization of _____.

a) Funds

b) Skills

c) Advertising

d) Fame

26. A dividend is the distribution of a company’s earnings to its shareholders and is determined by the company’s _____.

a) Manager

b) Directors

c) Board of directors

d) Staff

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27. Buyers of shares are called shareholders/stockholders and they are the _____ of the business whose shares they hold.

a) Real

b) Legal-owners

c) Best

d) Director

28. _____  is called borrowed fund/finance and referred to

also as debt.

a) Internal finance

b) Money

c) None of the above

d) External Finance

29. _____ real assets include copyrights, patents, and technical know-how.

a) Intangible

b) Tangible

c) All the above

d) None of the above

30. The proportion of _____ distributed as a dividend is called the dividend payout ratio.

Ans. Profits

A current asset, also known as a liquid asset, is any resource a company could use, turn into cash, or sell within _____.

a) a year

b) 6 months

c) 2 years

d) 1 month

31. The death of a partner can dissolve the partnership.

TRUE / FALSE

32.  A limited liability company may be defined as an artificial

creature, invisible, intangible, and existing only in contemplation of _____.

a) Art

b) Science

c) Law

d) Economics

33. _____ helps to identify the output desire, but budgeting helps to identify the inputs required.

a) Forecasting

b) Financing

c) Planning

d) Predicting

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34. _____ can also be used to forecast and predict the future of the business.

Ans. Ratios

35. Prediction is frequently used in _____ for funds.

a) Raising

b) Marketing

c) Exchanging

d) Planning

36. The field of finance is broad and _____.

a) Wide

b) Narrow

c) Dynamic

d) All the above

37. _____ management is, therefore, a dynamic and evolving art of making

daily financial decisions and control in households, businesses, non-business organizations, and government.

a) Business

b) Financial

c) Corporate

d) Finance

38. _____ and _____ (1973) tried to narrow the definition of finance by

defining it as the study of the nature and use of the means of payment.

a) Christy, Roden

b) Hornby, Anao

c) Oyekanmi, Pandey

d) Christy, Pandey

39. A financial plan is a_____.

a) Project

b) Budget

c) Statement

d) Plan

40. The _____ capital market will be our focus because it is the capital market that will assess the performance of the firm.

a) Organized

b) Unorganized

c) law

d) None of the above

41. A bond/debenture is a _____ stating the amount of money lent by a

bond holder to the company.

a) Book

b) Statement

c) Certificate

d) Document

42. A firm/business can sell shares to acquire equity funds.

TRUE / FALSE

43. The field of finance originally covered all but one

a) Instruments of finance

b) Institutions/intermediaries

c) Capital markets

d) Expenditure

44.  _____ is the other major financial decision that affects the shareholders and the business as a whole

Ans. Dividend Function

45. _____ are laid down in areas of production, purchase, marketing,

technology, finance, etc.

a) Fund

b) Policies

c) Rules

d) Instructions

46. In the market economy of a country, prices of goods and services are

determined by the forces of _____ and _____.

a) Demand, supply

b) Cash, carry

c) Pay, refund

d) All the above

47. The finance is related to _____ as every individual, organization and

government operates within the economy.

a) Science

b) Economics

c) Sociology

d) Philosophy

48. _____ is the common denominator for the full range of activities performed in the business.

a) Cash

b) Fund

c) Money

d) Commodities

49. When the goods and services are in high demand, their prices will_____.

Ans. rise

50. Oyekanmi in _____ defined finance “as money affairs or money matters”.

All forms of money or near money

a) 2003

b) 2000

c) 2010

d) 1990