Feb_2025 - Revision

Module 3 - Financial Management in Business

Feb_2025 - Revision

52問 • 1年前Module 3 - Financial Management in Business

問題一覧

Suppose a project has many hazards that could easily injure one or more persons and there is no method of avoiding the potential for damages. The project manager should consider ______ as a means of managing the risk.

Buying accident and life insurance for the site workers.

How many data points are within 1 standard deviation of the mean in a Bell Curve?

68%

Which information is NOT included in the Balance Sheet?

Cash Outflow

Which is the second stage in growth for small business?

Survival

CAPM stands for Capital Allocating Pricing Model.

False

Retail Sales Report is a type of Economic Indicator.

True

Investment is the exchange of money for goods and services

False

Which is the first step in building a Financial Projection?

Create a Sales Forecast

Which is NOT a type of Financial Management?

Discounting Period Management

"Profitability Index, Payback Period, Net Present Value, Real Options Valuation" Which type of Financial Management best suits the elements above?

Capital Structure Management

Which of the following is a form of negative cash flow?

Payment of Cash Dividend to Stockholders

Including Cost of Goods Sold, there are 9 types of expenses for Willy Wonka Pte. Ltd

True

How many stages are there in the growth of small business?

"We can get a pair of shoes for $60 dollars in 2020, however we cannot get a similar pair of shoes of the same quality for $60 dollars in 2030". Which concept best illustrates the phrase above?

Time Value of Money

Should the company make an adjustment in year 2021 and increase repair and maintenance to $5,450, number of sales and all other cost remain the same, what will be the new Net Income?

$111,900

What is the Net Income for Willy Wonka Pte. Ltd. for the year ended 2021?

$106,450

On average, how much does the rent cost a month?

$2,000

What is the profit before deducting expenses based on the Income Statement?

$196,000

How many data points are within 1 standard deviation of the mean in a Bell Curve?

68%

Why do you think Willy Wonka Pte. Ltd. spent money and repaired their fence?

It is a danger hazard and may fall on vehicles if left unrepaired.

For the year ended 2021, Willy Wonka Pte. Ltd. had 31 employees

False

Willy Wonka Pte. Ltd. made a profit for year 2021.

True

Apart from sales, there were also other additional income for the year ended 2021.

True

There were 2 incidents mentioned in the case study above. Both these incidents will fall under Microeconomics and not Macroeconomics

True

Which is NOT true about Sovereign Credit Rating?

Sovereign credit ratings do not give investors insights into the level of risk associated with investing in the debt of a particular country

Which of the following is NOT an influential agency for Sovereign Credit Rating?

Gloomy's

Total Assets = $150,000 Total Equity = $ 45,000 What is the Leverage?

3.33x

If a company has Current Assets of $100,000 and Current Liabilities of $80,000, then its Working Capital would be:

$20,000

Which of the following best describes Microeconomics?

Microeconomics is the study of issues at a small or company level.

Which is the first step in building a Financial Projection?

Create a Sales Forecast.

Expansion Financing helps companies do the following: i. Boosting a company's overall expansion plan ii. increase company's working capital iii. Finance a company's new ventures iv. Providing businesses with the ability to expand their Corporate Social Responsibility

i, ii & iii

What is the formula for Income Statement?

Net Income = Revenue - Expenses

Company X has Accounts Payable of $ 10,500. What is the Total Liabilities in the

$10,500

If Company V has $2300 in their bank account, and their counts Receivable value is $4200, what is the Total Asset in the Balance Sheet?

$6500

Which of the following is NOT a component of Working Capital?

Cash Flow Statement

In an Income Statement, if the Profit is $43,000, Gross Revenue is $64,000, and Expenses are $8,000, what is the Cost of Goods Sold?

$13,000

If the Expected Return for an asset is 4.35%, Beta being 0.43 and Risk-Free Rate is 3.1%, what is the Expected Market Return?

A stock of Company Y has a Beta of about 0.8. Meanwhile, the Expected Market Return is 11%. Risk Free Rate is 5%. What is the Expected Return for the stock?

9.8%

Income Statement includes the following information: i. Revenue ii. Liabilities iii. Profit Before Tax iv. Current Assets

i & iii

In primitivism,

People tend to self-produce all their needs and wants at the level of the household or tribe

Who is not a major player in the Financial Environment?

Shareholders

Assume that an investment of $700 will generate annual cash flows of $140 per year for 12 years. Using the Payback Period method, the number of years required to recoup the investment will be:

5 years

Leverage =

Assets Equity

Which is not a category of Finance?

Group

Working Capital is the difference between a company's Current Assets (cash, accounts receivable/customers' unpaid bills, inventories of raw materials and finished goods) and its current liabilities, such as accounts payable and debts.

True

Short-term debt is not a part of the Capital Structure.

False

The Discounted Payback Period analysis does not consider the time value of money.

True

The Net Present Value (NPV) method involves discounting a stream of future cash flows back to present value.

True

Investment is the exchange of money for goods and services.

False

CAPM stands for Capital Allocating Pricing Model.

False

Undercapitalization occurs when there's a need for outside capital because earnings were overestimated.

False

Overcapitalization occurs when earnings are not enough to cover the cost of capital, such as interest payments to bondholders or dividend payments to shareholders

True

Lesson #2

Jay Jayel · 30問 · 1年前

Lesson #2