#1
What is the primary goal of financial management in a business?
Maximizing profits
Minimizing costs
Maximizing shareholder wealth
Maximizing market share
#2
What does ROI stand for in finance?
Return on Investment
Revenue of Interest
Rate of Interest
Risk of Investment
#3
What does the term 'EBIT' stand for in finance?
Earnings Before Interest and Taxes
Estimated Business Income Trends
Effective Budgeting and Investment Techniques
Economic Business Investment Targets
#4
What is the purpose of financial forecasting in business finance?
To analyze historical financial data
To predict future financial performance
To calculate taxes
To determine market share
#5
What does the term 'EBITDA' stand for in finance?
Earnings Before Interest, Taxes, and Depreciation Amortization
Economic Business Investment Trends and Analysis
Effective Budgeting and Investment Techniques with Depreciation Amortization
Estimated Business Income Targets and Analysis
#6
What is the formula for calculating the net present value (NPV) of an investment?
NPV = Initial Investment / Cash Flow
NPV = Cash Flow / Discount Rate
NPV = Cash Inflows - Cash Outflows
NPV = ∑ (Cash Flow / (1 + Discount Rate)^t) - Initial Investment
#7
What is the purpose of financial ratios?
To analyze a company's financial performance
To calculate taxes
To determine market share
To manage human resources
#8
What does the term 'Leverage' refer to in finance?
The use of debt to finance assets
The ability to sell assets quickly
The liquidity of a company
The diversification of investments
#9
Which of the following is NOT a primary financial objective of a corporation?
Maximizing shareholder wealth
Increasing customer satisfaction
Maximizing profits
Minimizing costs
#10
Which of the following is a component of the DuPont analysis?
Current ratio
Inventory turnover
Return on assets
Earnings per share
#11
Which financial statement shows a company's revenues and expenses over a specific period?
Balance sheet
Cash flow statement
Income statement
Statement of retained earnings
#12
What is the purpose of a sensitivity analysis in financial planning?
To analyze the impact of changes in key variables on financial outcomes
To calculate the average rate of return
To determine the cost of debt
To assess market trends
#13
Which financial ratio measures a company's ability to pay its short-term obligations?
Current ratio
Debt-to-equity ratio
Return on assets
Inventory turnover ratio
#14
What is the formula to calculate the Weighted Average Cost of Capital (WACC)?
WACC = (Debt / Equity) * Cost of Equity
WACC = (Cost of Debt + Cost of Equity) / Total Capital
WACC = (Total Capital / Net Income) * 100
WACC = Net Income / Total Capital
#15
What does the term 'working capital' represent in finance?
The difference between current assets and current liabilities
The total assets of a company
The value of inventory
The long-term investments of a company