BFinance Prelim

HOLY CROSS ACADEMY, INC.
Gallarde Street, Digos City,

8002 Davao del Sur
S.Y.2021-2022
Monthly Test in Business Finance 12
General Instruction:
1. Use the attached ANSWER SHEET for your answer. Avoid writing
anything in this TEST QUESTIONNAIRE. Do not forget to write your
student ZIPGRADE Id. No., Ask your class adviser if you are not given yet.
2. Answer each question carefully. Be honest upon answering.
1. The primary goal of the financial manager is to

A. minimizing risk. C. maximizing wealth.
B. maximizing profit. D. minimizing return.
2. The corporate owners will receive realizable return through
A. earnings per share and cash dividends.
B. increase in share price and cash dividends.
C. increase in share price and earnings per share.
D. profit and earnings per share.
3. The wealth of the owners of a corporation is represented by
A. profits. C. share value.
B. earnings per share. D. cash flow.
4. Wealth maximization as the goal of the firm implies enhancing the wealth of
A. the Board of Directors. C. the federal government.
B. the firm's employees. D. the firm's stockholders.
5. Profit maximization fails because it ignores all EXCEPT
A. the timing of returns. C. cash flows available to stockholders.
B. earnings per share. D. risk.
6. Which of the following are refers to financial intermediary that handles individual savings. It receives
premium payments that are placed in loans or investments to accumulate funds to cover future benefits.
A. life insurance company C. savings bank
B. commercial bank D. credit union
7. The key participants in financial transactions are individuals, businesses, and governments. Individuals are
net ______ of funds, and businesses are net ______ of funds.
A. suppliers; users C. users; suppliers
B. purchasers; sellers D. users; providers
8. Which of the following is not a financial institution?
A. A pension fund C. A commercial bank
B. A newspaper publisher D. An insurance company
9. A ______ is set up so that employees of corporations or governments can receive income after retirement.
A. life insurance company C. savings bank
B. pension fund D. credit union
10. 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
11. Firms that require funds from external sources can obtain them from
A. financial markets. C. financial institutions.
B. private placement. D. All of the above
12. When you engage on putting your excess cash on something that will make it more profitable, you are
doing
A. Polling C. Saving
B. Investing D. Marketing cash
13.In the corporate organizational structure, each key position is working for the interest of?
A. the person on the line above them. C. their families and friends.
B. the person on the line below them. D. for their personal needs.
14. Who elected the company’s board of directors?

A. CEO C. unanimous vote of the employee
B. financial manager D. shareholders 1
15. The company’s president or CEO has the following functions, EXCEPT?
A. Performing all areas of management
B. Carries out the decision making for all functions
C. Make decisions to fund long term in investments
D. Overseeing the company’s operation.
16. The primary goal of the financial manager is
A. minimizing risk. C. maximizing wealth
B. maximizing profit. D. minimizing return
17. Financial managers evaluating decision alternatives or potential actions must consider
A. only risk. C. both risk and return
B. only returns. D. risk, return, and the impact on share price.
18. GSIS and SSS are examples of
A. Governmental Institutions C. Financial Institutions
B. Financial Market D. Financial Instruments
19. This is the most important account in the financial statement especially in forecasting as expenses are
being correlated with this.
A. Inventory C. Sales
B. Liabilities D. Assets
20. The following variables EXCEPT for one, posts a significant role in sales forecasting as it tells how much
the consumers are willing to spend.
A. Interest Rate C. Inflation Rate
B. Gross Domestic Product (GDP) D. Social Programs
Prepared by:
John Philip P. Aballe, LPT
Subject Teacher
Checked by: Noted by:
Charmaine R. Recana, LPT Mark Lexter T. Fernandez,MAEd
Subject Area-In Charge School Principal
For Questions and Queries:
Facebook/Messenger: JP ABALLE
Contact: 0938-391-2525
HOLY CROSS ACADEMY, INC.

Gallarde Street, Digos City,
8002 Davao del Sur 2
S.Y.2021-2022
Monthly Test in BUSINESS FINANCE 12
KEY ANSWER
1) . C
2) B
3) C
4) D
5) B
6) A
7) A
8) B
9) A
10) A
11) D
12) B
13) A
14) D
15) C
16) C
17) D
18) C
19) C
20) D
21) D
22) D
23) D
24) D
25) A
26) D
27) C
28) B
29) A
30) A
31 B
32 C
33 B
34 A
35 C
Certified Correct:
John Philip P. Aballe,LPT

Subject Teacher

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HOLY CROSS ACADEMY, INC.

Gallarde Street, Digos City,

1. The primary goal of the financial manager is to

14. Who elected the company’s board of directors?

For Questions and Queries:

HOLY CROSS ACADEMY, INC.

John Philip P. Aballe,LPT

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