Q1.Which of these activities does not exclusively come within the scope of corporate financial decision-making? a. How much should be invested? b. How much is to be allocated to the marketing budget? c. Which type of finance should be chosen? d. How much finance should be raised?
Q2.A great deal of financial theory is based on the concept of free markets and in particular the theory of a. perfect competition. b. monopolistic competition c. monopoly. d. oligopoly.
Q3.Which of the following is not a fundamental concept in Corporate Finance? a. Net present value b. The relationship between risk and return c. The business cycle d. Double-entry book-keeping.
Q4.What does the general principle of disclosure and transparency mean? a. The company is obliged to reveal all holding companies, strategic alliances, and joint ventures to the government. b. The company is obliged to reveal all investment plans to employees. c. The company is obliged to reveal all information in a timely manner which could have a significant effect on shareholder welfare. d. The company is obliged to lodge audited accounts with Companies House.
Q5.What is the stakeholder view of the firm? a. Shareholders should eventually be returned their stake in the firm. b. The firm must honour its wider social obligations as well as making money. c. The only obligation on the firm is to maximize profit. d. The firm exists to maximize return.
Q6.What is the Grameen bank? a. A US investment bank. b. A Bangladeshi bank specializing in microfinance. c. A Japanese bank specializing in Forex trading. d. A British hedge fund.
Q7.Which of the following people or institutions is not the author of a corporate governance code? a. International Corporate Governance Network. b. Cadbury. c. OECD. d. Harvard-Yale.
Q8.In finance we refer to the market for short-term government and corporate debt securities as the __________ market. a. Money b. Capital c. Prinary d. Secondary
Q9.Which of the following would generally have unlimited liability? a. A limited partner in a partnership. b. A shareholder in a corporation. c. The owner of a sole proprietorship. d. A member in a limited liability company (LLC).
Q10.In finance we refer to the market where existing securities are bought and sold as the __________ market a. Money b. Capital c. Primary d. Secondary