QUIZ: 1.

What is the type of finance that involves tasks such as budgeting, financial forecasting, cash management, and funds procurement? ANSWER: Managerial finance 2-4. List 3 goals of financial management. ANSWER: Profit maximization, Wealth maximization, Social responsibility 5. Which of the following legal forms of organization is most expensive to organize? ANSWER: Corporation 6. Short term goal by which a firm determines the price and output level that returns the greatest profit. ANSWER: Profit maximization 7-8. Enumerate 2 of a firm's social responsibilities. ANSWER: Charity works, Proper waste allocation 9. What method recognizes revenue at the point of sale and recognizes expenses when incurred? ANSWER: Accrual method 10. Who is responsible for the firms accounting activities, such as corporate accounting, tax management, financial accounting, and cost accounting? ANSWER: Treasurer

11. Who is responsible for the firms financial activities such as financial planning and fund raising, making capital expenditure decisions, and managing cash, credit, the pension fund, and foreign exchange? ANSWER: Controller 12. What are the key determinants of share price, which represents the wealth of the owners in the firm? ANSWER: Return and risk 13. What is an intermediary that channels the savings of individuals, businesses, and governments into loans or investments? ANSWER: Financial institution 14. What represents the rate at which additional income is taxed? ANSWER: Marginal tax rate 15. The _________ has/have the ultimate responsibility in guiding corporate affairs and carrying out policies. ANSWER: Board of Directors