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capmgmt - Quiz
Contributed by: Ann
  • 1. The planning and control of capital expenditures is therefore a basic excentive function
A) Money Market
B) Capital Budgeting
C) Capital Market
  • 2. Refers to substantial outlay of funds the purpose of which is lower cost
A) Capital Budgeting
B) Capital Market
C) Capital Expenditures
  • 3. Worn out or absolute facilities
A) Expansion Investment
B) Strategic Management
C) Product line or new market investment
D) Replacement Investment
  • 4. Provide additional facilities and increase the production
A) Replacement Investment
B) Strategic Management
C) Product line or new market investment
D) Expansion Investment
  • 5. New product or new materials
A) Product line or new market investment
B) Expansion Investment
C) Strategic Management
  • 6. Designed to accomplished the occur all objectives of the firm
A) Strategic Management
B) New market investment
C) Replacement Investment
  • 7. Necessary to comply with government orders, labor agreements or insurance policy terms
A) Other investment
B) Capital Budgeting
C) Mandatory investment
D) Strategic Management
  • 8. Catch all term includes office building
A) Expansion Investment
B) Replacement Investment
C) New market investment
D) Other investment
  • 9. Made when the proposal real worth
A) Capital Budgeting
B) Valuation
C) Investment
  • 10. Made when a firm spends some of its funds for the establishment of a project
A) Investment
B) Later
C) Initial
  • 11. Refers to the amount that has been devoted to a project
A) Investment
B) Later
C) Initial
  • 12. Made after the first cash inflow
A) Initial
B) Investment
C) Later
  • 13. the resources limited
A) Construction planning
B) Establishing priorities
C) Cash planning
  • 14. To ensure the availability of the funds.
A) Revising plan
B) Establishing priorities
C) Cash planning
D) Construction planning
  • 15. To minimize the period expanded for the construction or acquisition of a capital asset
A) Construction planning
B) Investment
C) Cash planning
  • 16. will help identify efforts undertaken
A) Cash planning
B) Eliminating Duplication
C) Revising plans
  • 17. Changes in the environmental factors
A) Revising plans
B) Urgency
C) Eliminating Duplication
  • 18. made as quickly as possible
A) Revising plan
B) Repairs
C) Urgency
  • 19. Availability of spare parts
A) Urgency
B) Repairs
C) Credit
  • 20. Sense that some credit terms highly favorable to the company
A) Urgency
B) Credit
C) Repairs
  • 21. Social consideration and non economic
A) Non- economic factor
B) Repairs
C) Credit
  • 22. refers to the economic evaluation
A) Credit
B) Economic factor
C) Investment worth
  • 23. Determine the number of years required
A) Credit
B) Payback method
C) Investment worth
  • 24. Simple and easy to compute
A) Average Rate of Return Methods
B) Payback Method
  • 25. is an important segment of business finance
A) Capital expenditures
B) Capital Budgeting
C) Urgency
D) Repairs
  • 26. uncertainty of an expected return
A) Investment worth
B) Risk involved
C) Capital Budgeting
  • 27. Short term borrowing, lending, buying and selling
A) Capital Expenditures
B) Capital Budgeting
C) Money Market
D) Capital Market
  • 28. Long term trading of debts
A) Primary Market
B) Capital Market
C) Money Market
  • 29. New issue of stocks and other security
A) Secondary Market
B) Primary Market
C) Money market
  • 30. exchange of existing or previously
A) Primary Market
B) Capital Market
C) Secondary Market
  • 31. used for market trade
A) Primary Market
B) Secondary Market
C) Capital Market Instruments
D) Capital
  • 32. As they involved debts and equity securities, the instruments
A) Capital Market
B) Securities
C) Money Market
  • 33. A large sum of money which you use to start a business, or which you invest in order to make money
A) Capital
B) Capital asset
C) Capital market
  • 34. Part of an amount of money borrowed or invested
A) Capital Budgeting
B) Capital
C) Capital market
  • 35. are significant pieces of properties, asset with a useful life longer than a year that is not intended for sale
A) Capital market
B) Capital asset
C) Capital
  • 36. Buyers and sellers seek each other out directly
A) Direct search market
B) Primary Market
C) Secondary market
  • 37. Broker bring buyers and sellers together for free
A) Dealer market
B) Capital market
C) Broker Market
D) Direct search market
  • 38. Go through dealers who buy securities at one price and sell at a higher price
A) Broker Market
B) Capital market
C) Dealer Market
  • 39. Have a fixed location where buyers and sellers confront each other directly and bargain over the transaction price
A) Auction Market
B) Broker Market
C) Dealer Market
  • 40. Trading securities outside of organized exchange
A) Dealer Market
B) Auction Market
C) Over the counter market
D) Broker Market
  • 41. person engage in buying and selling securities
A) Salesmen
B) Broker
C) Dealer
  • 42. person who buys and sell securities
A) Salesmen
B) Broker
C) Dealer
  • 43. natural person, employed as such or as an agent by a dealer
A) Dealer
B) Salesmen
C) Broker
  • 44. who directly control
A) Salesmen
B) Associated person of a broker or dealer
C) Broker
D) Dealer
  • 45. when the issuing firm and investment banker meet
A) Negotiated underwriting
B) Salesmen
C) Broker
D) Dealer
  • 46. instrument that derives from other securities
A) Derivatives
B) Solvency
C) Debenture
  • 47. document that states the terms of contract and it is held in trust by the trustee
A) Development
B) Derivatives
C) Trust deed
  • 48. buying and selling of currencies
A) Money market
B) Foreign exchange market
C) Capital market
  • 49. Intermediary between inventors and borrower
A) Dealer
B) Broker
C) Salesmen
  • 50. are individual and business firms who invest excess operating funds
A) Fund user
B) Fund suppliers
C) User
D) Dealer
  • 51. Who borrow capital for business
A) Dealer
B) Fund suppliers
C) Fund user
  • 52. Person engage in underwriting securities
A) Fund user
B) Fund suppliers
C) Investment Banker
  • 53. act or process of guaranting the distribution
A) Broker
B) Underwriting
C) Dealer
D) Investment Banker
  • 54. Investment banker sometimes referred to as
A) Investment houses
B) Investment home
C) Investment trade
  • 55. Selling security by private negotiation
A) Private placement
B) Replacement Investment
C) Investment Banker
  • 56. who either have excess funds or willing to ...
A) Fund user
B) Private placement
C) Individual investors
D) Investment Banker
  • 57. A market which securities are bought and sold
A) Private placement
B) Investment Banker
C) Stock exchange and over the counter trading
  • 58. Largest in the world
A) New York Stock Exchange
B) Philippine stock Market
  • 59. used by companies or government to generate funds
A) Debt instrument
B) Underwriting
C) Credit Instrument
  • 60. issued by Corporate bodies and the investors
A) Shareholder
B) Stock
C) Bonds
D) Preference share
  • 61. upon maturity of the instrument
A) Irredeemable Convertible
B) Irredeemable non convertible
  • 62. the holder can only sell
A) Irredeemable non convertible
B) Irredeemable convertible
  • 63. Repaid at the end of special period
A) Redeemable
B) Irredeemable non convertible
C) Irredeemable Convertible
  • 64. right given by the corporation, allowing him to buy a certain number of shares
A) Stock option
B) Stockholders
C) Bonds
  • 65. happens when a large firms takes control of small firm
A) Stock option
B) Bonds
C) Acquisition
  • 66. dividends paid in the company's own stock including treasury stock
A) Stock option
B) Stock Dividend
C) Acquisition
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