Financial Management Mc Chapters 1-9

101 Questions | By YvanB | Last updated: Mar 20, 2022 | Total Attempts: 345

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1.

Which of the following organizations is not a business?
- A.
  
  A university hospital.
- B.
  
  A record store.
- C.
  
  A shipping company.
- D.
  
  A tax consultancy firm.
2.

Which of the following activities is not concerned with efficiency?
- A.
  
  Modifying a product to tailor it to costumers wishes.
- B.
  
  Purchasing from a selected group of suppliers to achieve bigger discounts.
- C.
  
  Sending sales invoices more quickly.
- D.
  
  Modifying a product to shorten processing times.
3.

Which of the following statements is correct?
- A.
  
  Extending discount to reliable costumers is a business tactic that can secure maximum profit.
- B.
  
  The supply of public-sector goods is regulated through the market mechanism.
- C.
  
  Non-profit organizations are economically independent, because they rely on contributions, donations, subsidies, legacies and so forth.
- D.
  
  Companies tend to find it more difficult to transfer to other activities than non-profit organizations.
4.

Which of the following statements is incorrect?
- A.
  
  It is more difficult to measure the effectiveness of profit-based businesses than non-profit institutions.
- B.
  
  Non-profit organizations always strive to operate as efficiently as possible.
- C.
  
  Public-sector goods and services are provided by the government, because market mechanisms are not suitable for these goods and services.
- D.
  
  A negative financial result for a non-profit organization does not necessarily imply that the organization has performed poorly.
5.

Which of the following types of information is not likely to be included in a mission statement?
- A.
  
  The expect profit for next year.
- B.
  
  The environment credentials of the business.
- C.
  
  The main product groups offered by the business.
- D.
  
  The groups of participants for which the business wants to improve the level of prosperity.
6.

Which of the following statements is incorrect?
- A.
  
  Service business tend to have relatively low labour costs.
- B.
  
  A service business purchases hardly any raw materials.
- C.
  
  With the mass production products are usually manufactured for stock and not to order.
- D.
  
  The production process pf a trading company can be a conversion according to place.
7.

The manufacturing of a car in a saloon and a cabriolet versions is called:
- A.
  
  Mass production.
- B.
  
  Batch Production.
- C.
  
  Job production.
8.

Statement 1: The wholesale trade is ' B2B ' Statement 2: Wholesale trade is seasonal products is important for reducing the time between production and consumption.
- A.
  
  Both statements are correct.
- B.
  
  Both statements are incorrect
- C.
  
  Statement 1 is correct, statement 2 is incorrect.
- D.
  
  Statement 1 is incorrect, statement 2 is correct.
9.

Which of the following businesses is not obliged to publish financial statements?
- A.
  
  Brown and son partnership.
- B.
  
  Johnston Ltd.
- C.
  
  Harvey PLC.
- D.
  
  Eastman LLC.
10.

The Torville & Dean partnership has failed to repay a bank loan of 100.000 Torville has a 40% share, Dean a 60% share in the partnership. The bank is entitled to demand that torville pays:
- A.
  
  € 100,000,-
- B.
  
  € 40,000,-
- C.
  
  € 50,000,-
- D.
  
  Nothing.
11.

A partnership has two general partners and one limited partner. General Partner A has invested 100.000 in the partnership, general partner B 50.000 and limited partner C 450.000. The partnership has a total debt of 1 Million. Partner A is liable for:
- A.
  
  € 1 Million.
- B.
  
  € 100,000,-
- C.
  
  € 500,000,-
- D.
  
  € 550,000,-
12.

Which of the following statements is incorrect?
- A.
  
  A sole proprietorship is subject to corporate tax.
- B.
  
  Under the imputation system, corporate tax is treated as a prepayment of income tax levies on the shareholders.
- C.
  
  The 'company tax burden balance' aims at striking a balance between companies that are legal entities and those that are not.
- D.
  
  The partners in a partnership are subject to income tax.
13.

XYZ Ltd records a profit of 400.000 and distributes half of its profit after taxation to shareholders. The rate of corporate tax is 20% and the rate of income tax is 45%. Under the classical system, the total amount in taxes paid is:
- A.
  
  € 152,000,-
- B.
  
  € 72,000,-
- C.
  
  € 224,000,-
- D.
  
  € 80,000,-
14.

Which of the following statements is incorrect?
- A.
  
  A limited partner in a partnership is liable for the partnership's debts.
- B.
  
  LLCs and PLCs are both joint-stock companies.
- C.
  
  Shareholders are not liable for the repayment of a company's debts.
- D.
  
  Only public limited companies can have their shares traded at the stock exchange.
15.

A Dutch wholesale trader purchases 1.000 radios at a unit price of 20 euros. Excluding 19% VAT. The trader sells 700 radios to Dutch retailers at selling price of 40 euros. The Dutch wholesale trader pays the Dutch tax authorities an amount of:
- A.
  
  € 190,-
- B.
  
  € 2,470,-
- C.
  
  € 3,520,-
- D.
  
  € 4,210,-
16.

An industry comprises:
- A.
  
  Competing businesses.
- B.
  
  Businesses operating at the same stage of the production process.
- C.
  
  Businesses operating at all stages of the production process of a single product.
- D.
  
  Businesses operating in the same market sector.
17.

The owner of a do-it-yourself shop affiliates with a chain, thereby being allowed to call his shop hobby plus. The owner pays a fee on the basis of his turnover. This is:
- A.
  
  Franchising.
- B.
  
  A merger.
- C.
  
  A takeover.
- D.
  
  Cartelization.
18.

When businesses enter into cartel agreement, their aim is:
- A.
  
  To have a stronger bargaining position with regard to the trade unions.
- B.
  
  To restrict competition.
- C.
  
  To buy out competitors.
- D.
  
  To start a new joint-stock company.
19.

Cartelization will predominantly occur in a:
- A.
  
  Oligopoly.
- B.
  
  Monopoly.
- C.
  
  Competitive Market.
- D.
  
  All of the above mentioned.
20.

Investments decisions are part of the discipline of:
- A.
  
  Finance.
- B.
  
  Management accounting.
- C.
  
  Financial accounting.
- D.
  
  Bookkeeping.
21.

In which of the following situations is investment caused automatically by the production process?
- A.
  
  Provision of trade credit on the sale of goods.
- B.
  
  Purchase of a new computer system.
- C.
  
  Lease of trucks.
- D.
  
  Sale of company premises.
22.

Which of the following is not part of the discipline of management accounting?
- A.
  
  Cost calculations.
- B.
  
  Designing a budgeting system.
- C.
  
  Disclosure of financial figures.
- D.
  
  Make or buy decisions.
23.

2.4 Which of the following is statements is correct?
- A.
  
  In financial accounting a company's management may resort to creative accounting.
- B.
  
  The legal form of a business is not important to financial accounting.
- C.
  
  Financial accounting is focused on the future.
- D.
  
  Financial accounting only has an accountability function.
24.

Which statement is correct?
- A.
  
  Company law influences the discipline of finance.
- B.
  
  Organizational behavior influences the discipline of finance.
- C.
  
  Management accounting provides basic data for bookkeeping.
- D.
  
  Marketing is part of the discipline of management accounting.
25.

Tax law mainly applies to:
- A.
  
  Financial accounting.
- B.
  
  Finance.
- C.
  
  Management accounting.
- D.
  
  Organizational behavior.