lesson 1

Question 1

It is important to manage risks in business

Answer 1

Finance

Question 2

Maximize the value of share stocks

Answer 2

Financial management

Question 3

Important especially in the financial aspect of the business

Answer 3

Organizational structure

Question 4

Elects the board of directors, each share held is equal to one boting right

Answer 4

Shareholders

Question 5

Highest policy making body in corporation

Answer 5

Board of Directors

Question 6

Approving the information and other disclosures reported in the financial statements

Answer 6

President (Ceo)

Question 7

Formulating marketing strategies and plans.

Answer 7

Vp for marketing

Question 8

Ensuring production meets customer demands.

Answer 8

Vp for production

Question 9

Coordinating the functions of administration, finance, and marketing departments.

Answer 9

Vp for administration

Question 10

determine the appropriate capital structure of the company.

Answer 10

Vp for finance

Question 11

refers to hos much of your total assets financed by debt and how much is financed by equity.

Answer 11

Capital structure

Question 12

bought using cash from our pockets,

Answer 12

Equity

Question 13

used money from our borrowings,

Answer 13

Debt

Question 14

long-term investments and working capital-which deals with the day-to-day operations of the company.

Answer 14

Financing decisions

Question 15

minimize the probability of failure,

Answer 15

Investing decisions

Question 16

deal with the daily operations of the company, accounts receivable and inventories

Answer 16

Operating decisions

Question 17

part of profits that are available for distribution, to equity shareholders.

Answer 17

Dividend policies

Question 18

financial sector that provide a broad range of business and services including banking, insurance, and investment management.

Answer 18

Financial institutions

Question 19

deposit funds at commercial banks, which use the deposited funds to provide commercial loans to firms

Answer 19

Commercial banks

Question 20

Individuals purchase (life, property and casualty, and health) protection with insurance premiums.

Answer 20

Insurance companies

Question 21

owned by investment companies that enable small investors to enjoy the benefits of investing

Answer 21

Mutual funds

Question 22

Financial institutions that receive payments from employees and invest the proceeds on their behalf.

Answer 22

Pension funds

Question 23

real or a virtual document representing a legal agreement involving some sort of monetary value.

Answer 23

Financial instrument

Question 24

any contract that evidences a residual interest in theassets of an entity after deducting all liabilities.

Answer 24

Equity instrument

Question 25

generally have fixed returns due to fixed interest rates.

Answer 25

Debt instrument

Question 26

These bonds and bills have usually low interest rates and have very low risk of default since the government assures that these has been paid.

Answer 26

Treasury bonds and treasury bills

Question 27

has priority over a common stock inters of claims overthe assets of a company.

Answer 27

Preferred stock

Question 28

on the other hand are the real owners of the real company.

Answer 28

Common stock

Question 29

refers to a marketplace, where creation and trading of financial assets,

Answer 29

Financial market

Question 30

refers to a marketplace, where creation and trading of financial assets,

Answer 30

Financial market

Question 31

The sale of new securities to one investor or a group of investors (institutional investors)

Answer 31

Primary / Private placement

Question 32

sale of previously owned ianaf securities takes place in

Answer 32

Secondary market

Question 33

is both a primary and secondary market.

Answer 33

Philippine stock exchange (PSE)

Question 34

is both a primary and secondary market.

Answer 34

Philippine stock exchange (PSE)

Question 35

are a venue wherein securities with short-term maturities (1 year or less) are sold.

Answer 35

Money market

Question 36

Securities with long term maturities

Answer 36

Capital markets

Question 37

Securities with long term maturities

Answer 37

Capital markets