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2nd QA Business Finance

business

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Memi Valenzuela
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9 views2 pages

2nd QA Business Finance

business

Uploaded by

Memi Valenzuela
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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LEMERY NATIONAL HIGH SCHOOL

LEMERY, ILOILO
SUMMATIVE TEST IN BUSINESS FINANCE

NAME: ___________________________________________ SCORE: __________


GRADE & SECTION: ___________________________

Multiple Choice. Choose the letter of the correct answer and write it on the space provided before each
number.
1. It is a financial institution that does not have a full banking license or is not supervised by by a national or international
banking regulatory agency.
A. Non- bank B. Bank C. Insurance company D. Credit corporation
2. A financial institution licensed to receive deposits and make loans.
A. Non- bank B. Bank C. Insurance company D. Credit corporation
3. Which of the following is NOT a loan product from banks?
A. Auto loan B. Housing loan C. Credit card loan D. Student loan
4. Which of the following is the 5C’s in credit ?
A. Character, capacity,collateral,capital,condition B. character customer, collateral, capital,condtion
C.Character,capacity,company,collateral,capital,condition D. Character, credit,collateral,capital,condition
5. The following are the duties of the borrowers to creditors EXCEPT
A. Pay the creditors based on the payment schedule agreed upon
B. Default on the loans as much as possible
C. Notify the creditor if the company is acquiring another company
D. Comply with the provisions of the loan covenant such as maintain certain liquidity and leverage ratios
6. It is the lending of money from one source to another source for a specified period.
A. loan B. income C. obligation D. debit
7. Which of the following is TRUE about secured loan?
A. It is not protected by any collateral B. It is one that is connected to a piece of collateral
C. If you default on the loan the lender cant automatically take your property
8. Which of the following is an example of a secured loan?
A. credit cards B. student loan C. personal Loan D. Car loan
9. It means to provide funding for a particular need
A. Financing B. Equity C. Balance D. Cash flow
10. It is the method of raising capital by selling company stock to investors in exchange of ownership interests in the company.
A. Equity financing B. Debt financing C. secured loan D. unsecured loan
11. Which of the following is an advantage of equity financing?
A. It is limited to interest payment C. It does not require a fixed dividend payment
B. Interest expense is tax deductible D. It has the highest cost
12. It is a debt scheduled to be paid within a year
A. Short term financing B. Long term financing C. Liquidity Risk D. Leverage ratio
13. It a debt to be paid in more than a year
A. Short term financing B. Long term financing C. Liquidity Risk D. Leverage ratio
14. It refers to the inability of an investor to buy or sell an asset to avoid financial loss
A. Short term financing B. Long term financing C. Liquidity Risk D. Leverage ratio
15.Refers to the extension of payment due date by suppliers.
A. Suppliers credit b. Advances from stockholders C. Credit limit D. Liquidity risk
16. Companies dedicated to lending. They usually charge higher interest than banks but their credit requirements are more lenient
compared to banks
A. Banks B. Credit Cards C. Credit cooperatives D. Lending companies
17. Interest usually paid per month and monthly interest is (6-5)/5 or 20%
A. Banks B. lending companies C. Informal lending sources d. pawnshops
18. ________ provides funds in exchange for collateral usually jewelry or other items of value.
A. credit cooperatives B. Lending companies C. Pawnshops D. Banks
19. What is the most important consideration of banks in approving a loan?
A. Character and Capacity B. Character and Condition C. Capital and collateral D. Capacity and Collateral
20. Which of the following belongs to the short term loan?
A. Housing loan B. Auto Loan C. Emergency loan D. Acquisition of equipment

Prepared By: Checked By: Approved By:

MEMI G. VALENZUELA LEIZEL O. CUSTODIO ABE M. ERAZO

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