C708 V4 Quizzes Unit 2-Module 1: An Introduction to Finance, Module 2: Relating Finance to Business, Module 3: The Financial Market Environment (Macro-level), and PA by Unit with COMPLETE SOLUTION

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C708 V4 Quizzes Unit 2-Module 1: An Introduction to Finance, Module 2: Relating Finance to Business, Module 3: The Financial Market Environment (Macro-level), and PA by Unit with COMPLETE SOLUTION... Time - ✔✔Which concept describes the underlying driver behind all finance? The study of fund management and asset allocation over time Fund management and asset allocation encompass the entire function of finance - ✔✔Which answer gives a definition of finance? Accounting is backwards looking, finance projects forward, and economics studies cause and effect. Accounting reflects decisions that are already made; finance looks at the impact of decisions to be made; economics seeks to explain how business decisions are made - ✔✔Which answer best summarizes how the fields of accounting, finance, and economics relate to each other To maximize short-term profit Finance focuses on cash flow and not profit. - ✔✔Which answer does not represent how finance is used in organizations? Whether you can accurately calculate the guaranteed return on the investment Nothing is guaranteed in finance. Uncertainty is an essential factor in finance - ✔✔Which factor is not something a corporation must consider when making an investment decision? A sole proprietorship does not elect board members. The owner is personally liable for the business's debt and obligations There is only one owner.There is no separation between the taxes of the sole proprietorship and the taxes of the owner. Instead, all business profits are treated as the income of the owner. - ✔✔Which answer is a characteristic of a sole proprietorship There must be at least two business owners. A partnership is an arrangement by which two or more persons agree to share in all assets, profits, and financial and legal liabilities of a business - ✔✔Which answer is a legal characteristic of a general partnership? [Show More]

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