Republic of the Philippines
Department of Education
REGION XII - SOCCSKSARGEN
SCHOOLS DIVISION OFFICE OF COTABATO
LIBUNGAN HIGH SCHOOL
S.Y. 2022-2023
BUSINESS FINANCE
Name: Date:
Grade & Section: Score:
Part I. MULTIPLE CHOICE: Write your answer on the space provided.
1. It can be defined as the science and art of managing money.
a. Budgeting b. Finance c. Accounting d. None of the above
2. It is the act of estimating revenue (in the form of their allowance) and expenses over a period.
a. Budgeting b. Finance c. Accounting d. None of the above
3. A business owned by two or more people and operated for profit
a. Sole Proprietorship b. Partnership c. Corporation d. Mutual
4. A business owned by one person and operated for his profit
a. Sole Proprietorship b. Partnership c. Corporation d. Mutual
5. An entity created by law owned by shareholders.
a. Sole Proprietorship b. Partnership c. Corporation d. Mutual
6. Is a market in which financial assets are traded. In addition to enabling exchange of previously issued
financial assets.
a. Financial Institution b. Financial Market c. Financial Instrument d. None
7. Is an institution whose primary source of profits is through financial asset transactions.
a. Financial Institution b. Financial Market c. Financial Instrument d. None
8. These are cash, evidence of an ownership interest in an entity, or a contractual right to receive, or
deliver,
cash or another financial instrument.
a. Financial Institution b. Financial Market c. Financial Instruments d. None
9. Describes collectively the financial markets, the participants, and the instruments and securities that
are
traded in the said markets.
a. Financial Institution b. Financial system c. Financial Instruments d. None
10. The primary goal of the financial manager is
a. minimizing risk b. maximizing profit c. minimizing return d. None
11. Corporate owners receive realizable return through
a. Earnings per share & cash dividends c. Increase in share price and earnings per share
b. Increase in share price and cash dividends d. None
12. The wealth of the owners of a corporation is represented by
a. profits b. earnings per share c. share value d. None
13. Wealth maximization as the goal of the firm implies enhancing the wealth of
a. the BOD b. the firm’s employees c. the firm’s stockholder d. None
14. Which is not the role of the VP for Finance?
a. Financing b. Investing c. Selling d. Operating
15. A is one financial intermediary handling individual savings. It receives premium payments
that are placed in loans or investments to accumulate funds to cover future benefits.
a. Life insurance company b. commercial bank c. savings bank d. None
16. The is created by a financial relationship between suppliers and users of short-term funds. A.
financial market B. money market C. stock market D. capital market
17. Firms that require funds from external sources can obtain them from .
1
Republic of the Philippines
Department of Education
REGION XII - SOCCSKSARGEN
SCHOOLS DIVISION OFFICE OF COTABATO
LIBUNGAN HIGH SCHOOL
S.Y. 2022-2023
A. financial markets. B. private placement. C. financial institutions. D. All of the above.
18. The major securities traded in the capital markets are .
A. stocks and bonds. B. bonds and commercial paper. C. commercial paper and Treasury bills. D. Treasury bills
and certificates of deposit.
19. A is one financial intermediary handling individual savings. It receives premium payments
that are placed in loans or investments to accumulate funds to cover future benefits.
2
Republic of the Philippines
Department of Education
REGION XII - SOCCSKSARGEN
SCHOOLS DIVISION OFFICE OF COTABATO
LIBUNGAN HIGH SCHOOL
S.Y. 2022-2023
A. life insurance company B. commercial bank C. savings bank D. credit union
20. To is to allocate money in the expectation of some benefit in the
future.
A. sell B. buy C. borrow D. invest
21. Which of the following is not a financial institution?
A. A pension fund B. A newspaper publisher C. A commercial bank D. An insurance
company
22. A is set up so that employees of corporations or governments can
receive income after retirement. A. life insurance company B. pension fund C. savings bank
D. credit union
23. A is a type of financial intermediary that pools savings of individuals and
makes them available to business and government users. Funds are obtained through the sale of
shares.
A. mutual fund B. savings and loans C. savings bank D. credit union
24. What is the financial system concerned with?
A. Money B. Credit C. Services D. All of these
25.Which of the following is not a service provided by financial institutions?
A. Buying the businesses of customers
B. Investing customers’ savings in stocks and bonds
C. Paying savers’ interest on deposited funds
D. Lending money to customers
26. Government usually
A. borrows funds directly from financial institutions.
B. maintains permanent deposits with financial institutions.
C. is a net supplier of funds.
D. is a net demander of funds.
27. By definition, the money market involves the buying and selling of
A. funds that mature in more than one year. B. flows of funds. C. stocks and bonds. D. short-
term funds.
28. The is created by a financial relationship between suppliers and users of
short-term funds. A. financial market B. money market C. stock market D. capital market
29. Firms that require funds from external sources can obtain them from
A. financial markets. B. private placement. C. financial institutions. D. All of the above.
30. The major securities traded in the capital markets are
A. stocks and bonds. B. bonds and commercial paper. C. commercial paper and Treasury bills.
D. Treasury bills and certificates of deposit.
For No. 31-35. Matching type (Financial Instrument)
A. Stocks B. Notes C. Preneed Plans D. Cert. of
Deposit E. Bonds Match each branch to its appropriate
description below:
31. Savings certificate entitling the bearer to receive interest.
32. A debt investment in which an investor loans money to an entity
(corporate/governmental) that borrows the funds for a defined period of time at a fixed interest
rate.
33. A security that signifies ownership in a corporation.
34. A financial security that generally has a longer term than a bill, but a shorter term
than a bond.
35. Denoting a scheme in which one pays in advance for a service or facility. Ex. Educ.
Plans
Republic of the Philippines
Department of Education
REGION XII - SOCCSKSARGEN
SCHOOLS DIVISION OFFICE OF COTABATO
LIBUNGAN HIGH SCHOOL
S.Y. 2022-2023
II. True or False: Write your answer on the space provided
1. To achieve the goal of profit maximization for each alternative being considered, the
financial manager would select the one is expected to result in the highest monetary return.
2. Dividend payments change directly with changes in earnings per share.
3. The wealth of corporate owners is measured by the share price of the stock.
4. Financial markets are intermediaries that channel the savings of individuals,
businesses and government into loans or investments.
5. The money market involves trading of securities with maturities of one year or less
while the capital market involves the buying and selling of securities with maturities of more
than one year.
6. High cash flow is generally associated with a higher share price whereas higher risk
tends to result in a lower share price.
7. When considering each financial decision alternative or possible action in terms of its
impact on the share price of the firm’s stock, financial managers should accept only those actions
that are expected to increase the firm’s profitability.
8. To achieve the goal of profit maximization for each alternative being considered, the
financial manager would select the one that is expected to result in the highest monetary return.
9. Dividends payment change directly with changes in earnings per share.
10. The wealth of corporate owners is measured by the share price of the stock.
