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MBA Finance Investment Management — practice questions — page 3

Explore 113 free Investment Management questions in MBA Finance Financial Management. Open each question or exercise to read its content, reference answers and available explanation.

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Investment Management questions and exercises with answers

Showing questions 61–90 of 113.

The art and science of managing a firm's money so that it can meet its goals is:Read the answer and worked solution →Making sure the firm has cash on hand to pay bills as they come due is:Read the answer and worked solution →Short-term investments that can be turned into cash easily are called:Read the answer and worked solution →A firm sells its accounts receivable outright at a discount to raise money quickly. This is:Read the answer and worked solution →A bank tells a firm the most it may borrow unsecured over the coming year. That agreement is a:Read the answer and worked solution →A financially strong corporation issues an unsecured short-term IOU. That instrument is:Read the answer and worked solution →Credit a seller gives a buyer between delivery and payment is called:Read the answer and worked solution →A business loan with a maturity longer than one year is a:Read the answer and worked solution →A long-term loan made against real estate as collateral is a:Read the answer and worked solution →Analysing long-term projects and picking those with the best returns is:Read the answer and worked solution →Investments in land, buildings and machinery expected to serve beyond a year are:Read the answer and worked solution →The chance that a firm cannot make scheduled interest and principal payments on its debt is:Read the answer and worked solution →The principle that a higher risk should bring the chance of a greater return is the:Read the answer and worked solution →A security representing an ownership interest in a corporation is:Read the answer and worked solution →An equity security whose dividend is fixed when it is issued is:Read the answer and worked solution →Payments made to stockholders out of a corporation's profits are:Read the answer and worked solution →The amount borrowed by the issuer of a bond, also called par value, is the:Read the answer and worked solution →Bonds issued by states, cities and counties are called:Read the answer and worked solution →New securities are sold to the public for the first time in the:Read the answer and worked solution →Already-issued securities are bought and sold between investors in the:Read the answer and worked solution →A firm that pools investors' money to buy a selection of securities is a:Read the answer and worked solution →Catch the short-term fundsRead the answer and worked solution →Pop the equity wordsRead the answer and worked solution →Run the finance gatesRead the answer and worked solution →Slice the finance wordsRead the answer and worked solution →Debt or equityRead the answer and worked solution →Sort the money decisionsRead the answer and worked solution →Type the numberRead the answer and worked solution →Securities bingoRead the answer and worked solution →A sports shop spends 16,000 on a machine and expects inflows of 2,000, 4,000, 5,000, 5,000 and 5,000. Its payback period is:Read the answer and worked solution →

Worked practice questions

The art and science of managing a firm's money so that it can meet its goals is:

  1. Financial management
  2. Physical management
  3. Personnel management
  4. Property management
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Correct answer: A. Financial management

1. It covers raising and using money. 2. Its purpose is meeting the firm's goals. 3. It is financial management. _Source: OpenStax Introduction to Business, Chapter 16, Understanding Financial Management and Securities Markets._

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Making sure the firm has cash on hand to pay bills as they come due is:

  1. Craft management
  2. Cash management
  3. Crop management
  4. Crowd management
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Correct answer: B. Cash management

1. Unexpected expenses must also be met. 2. It is about liquidity, not profit. 3. It is cash management. _Source: OpenStax Introduction to Business, Chapter 16, Understanding Financial Management and Securities Markets._

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Short-term investments that can be turned into cash easily are called:

  1. Marketable securities
  2. Marginal securities
  3. Mandatory securities
  4. Municipal securities
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Correct answer: A. Marketable securities

1. Idle cash is parked in them. 2. They convert back quickly. 3. They are marketable securities. _Source: OpenStax Introduction to Business, Chapter 16, Understanding Financial Management and Securities Markets._

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More Financial Management topics

Corporate FinanceFinancial ManagementBusiness StudiesFinancial MarketsSimple and Compound InterestTime Value of MoneySecurities MarketsCapital Budgeting