FBA 1601 Principles of Business Administration Chapter 15 Quiz
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Questions and Answers

Which financial market is known for trading long-term debt instruments?

  • Money Markets
  • Capital Markets (correct)
  • Primary Market
  • Secondary Market
  • What type of capital investment analysis involves substantial long-lived assets that produce economic benefits for more than one year?

  • Long-lived assets (correct)
  • Expansion
  • Debt Capital
  • Equity Capital
  • Which source of funds involves obtaining funds through borrowing?

  • Common stock
  • Dividend Policy
  • Debt Capital (correct)
  • Trade Credit
  • What type of financial institution is known for issuing securities and selling them initially to the public?

    <p>Investment Banks</p> Signup and view all the answers

    Which short-term funding option involves investors being paid interest for the use of their funds and generally includes low-risk securities like Treasury bills and commercial paper?

    <p>Commercial Paper</p> Signup and view all the answers

    What is the primary role of the finance function in a business?

    <p>Planning, obtaining, and managing the company’s funds to accomplish objectives</p> Signup and view all the answers

    What is the purpose of a financial plan?

    <p>Answering questions about required funds, timing, and sources of funds</p> Signup and view all the answers

    What is one of the key responsibilities of a CFO (Chief Financial Officer)?

    <p>Being a member of the board of directors</p> Signup and view all the answers

    What does the finance function involve in terms of managing the company’s funds?

    <p>Planning, obtaining, and managing the company’s funds to accomplish objectives</p> Signup and view all the answers

    What are financial plans based on?

    <p>Forecasts of costs and expected sales activities for a given period</p> Signup and view all the answers

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