Test 1

Question 1

What is Finance

Answer 1

Making decisions about money or cash flows

Question 2

General areas of Finance

Answer 2

Fin institution - financial markets

Question 3

MaRketing with regard to Finance

Answer 3

Marketing budget

Question 4

Agency problem

Answer 4

Definition and example

Scenario is that you give someone control over th running’s You have no way of monitoring everyone’s

Question 5

Agency problem solutions

Answer 5

Incentives

Question 6

Ethics definition and what Corp gov entails

Answer 6

ethics def
King def and Corp Governance through King
Benefits of using the king report
Requirements of the king report

Question 7

Difficulties in other countries

Answer 7

Scenario

Question 8

What information you can get from financial statements

Answer 8

Qualitative and quantitative

Question 9

Ratios

Answer 9

What it means

And what decisions you would have to make

Question 10

DuPont analysis

Answer 10

Interpret answer

Question 11

Limitations of ratios

Answer 11

Go through all of them and their explanations

Question 12

Limit advance

Answer 12

Although they have limitations we look at three things

Question 13

Why are financial markets important

Answer 13

Too much money no money situation they don’t know each other and don’t meet to discuss therefore the economy doesn’t work well. Fin markets act as a intermediary for the saving loan transactions for the opposite things that situation needed

Question 14

Market efficiency types

Answer 14

Stock market

If you have to make a decision in your life and you have more info you make a decision