#1
Which financial statement represents a company's financial position at a specific point in time?
Income statement
Balance sheet
Cash flow statement
Statement of retained earnings
#2
What is the purpose of a SWOT analysis in business decision-making?
To identify a company's strengths and weaknesses
To analyze market trends
To calculate financial ratios
To determine production costs
#3
What is the purpose of a break-even analysis in business decision-making?
To determine the point at which a company's total revenue equals its total costs
To maximize profits
To calculate market share
To forecast sales
#4
Which of the following is NOT a component of the DuPont analysis?
Net profit margin
Return on assets
Return on equity
Gross profit margin
#5
Which financial metric measures a company's ability to meet its short-term obligations with its most liquid assets?
Return on assets (ROA)
Current ratio
Debt-to-equity ratio
Earnings per share (EPS)
#6
What is the primary purpose of financial ratio analysis?
To determine the company's net income
To evaluate a company's liquidity, profitability, and solvency
To calculate the company's taxes
To assess the company's employee turnover rate
#7
Which of the following is NOT a commonly used capital budgeting technique?
Net present value (NPV)
Internal rate of return (IRR)
Payback period
Return on investment (ROI)
#8
In finance, what does the term 'leverage' refer to?
The company's ability to pay its short-term liabilities
The degree to which a company uses fixed-income securities such as debt
The company's profitability ratio
The company's liquidity ratio
#9
Which financial metric measures a company's efficiency in using its assets to generate revenue?
Return on investment (ROI)
Current ratio
Asset turnover ratio
Debt-to-equity ratio
#10
What does the term 'opportunity cost' represent in business decision-making?
The actual cost incurred in pursuing a business opportunity
The cost of a specific opportunity that must be forgone in favor of another
The cost of production
The cost of marketing
#11
Which of the following is NOT a characteristic of a well-defined business goal?
Measurable
Achievable
Vague
Relevant
#12
What is the main objective of financial modeling in business decision-making?
To create complex mathematical formulas
To predict a company's future financial performance
To analyze historical financial data
To calculate taxes
#13
What does the term 'working capital' represent in financial management?
Long-term assets
Short-term liabilities
The difference between current assets and current liabilities
Investment in fixed assets
#14
What is the primary objective of financial risk management?
To eliminate all financial risks
To maximize profits
To minimize the impact of potential financial losses
To avoid taxes
#15
In capital budgeting, which technique discounts all future cash flows back to their present value?
Payback period
Net present value (NPV)
Internal rate of return (IRR)
Return on investment (ROI)