Lesson 1 activity

Question 1

What should be the overriding objective of managers of companies that are publicly listed?

Answer 1

Maximize shareholders’ wealth

Question 2

Which of the following financial instruments is generally associated with a fixed amount of
dividend per share and that no cash dividend will be given to the real owners of a company
unless the dividends due to the holders of this instrument are paid first?

Answer 2

preference share

Question 2

Which financial institution provides savers a mechanism where they can put their money in
the form of deposits?

Answer 2

banks

Question 2

financial instrument/s represents forms of indebtedness of the national government?

Answer 2

treasury notes

Question 2

vWhich of the following is a financial institution?
A. National Power Corporation (NPC)
B. Development Academy of the Philippines (DAP)
C. Philippine Health Insurance Corporation (PhilHealth)
D. Philippine General Hospital (PGH)

Answer 2

c

Question 2

Which financial institution protects the individuals from loss of life or damaged
properties?

Answer 2

Insurance company

Question 3

Which of the following financial instruments is subordinate to all kinds of financial instruments
and represents the interest of the owners of a company?

Answer 3

ordinary share

Question 4

8. Which of the following is among the functions of a vice president for finance?

A. Helping top management decide to expand production capacity.

B. Approving the company’s strategies, goals, and budgets.

C. Overseeing the operations of a company and ensuring that the strategies are implemented
as planned.

D. Performing market and competitor analysis

Answer 4

b

Question 5

represents the highest policy-making body in a corporation

Answer 5

board of directors

Question 6

what kind of vice presidents (VP) in a company ensures enough cash to pay maturing
obligations?

Answer 6

vp for finance