A Useful Business Quiz - Corporate Finance

10 Questions | Total Attempts: 23

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A Useful Business Quiz - Corporate Finance

Corporate finance is the branch of finance that deals with how corporations deal with funding sources, capital structure, and investment decisions. Corporate finance primarily of dealing with maximizing shareholder value through long and short-term financial planning and the implementation of various strategies. This is a useful business quiz about corporate finance. Take it and learn interesting facts.


Questions and Answers
  • 1. 
    Capital market status is very important when it comes to -
    • A. 

      A. risk.

    • B. 

      B. flexibility.

    • C. 

      C. timing.

    • D. 

      D. control.

  • 2. 
    Value can be created on the liability side of the balance sheet as well as the asset side. Select one:
    • A. 

      True

    • B. 

      False

  • 3. 
    The quantitative ratio, that serves as an indicator of a firm's ability to meet contractual obligations is Select one:
    • A. 

      A. Asset turnover ratio

    • B. 

      B. Coverage ratio

    • C. 

      C. Operating cycle ratio

    • D. 

      D. None of the above

  • 4. 
    Which of the following is not a step in FRITCO analysis? Select one:
    • A. 

      A. Flexibility

    • B. 

      B. Risk

    • C. 

      C. Income

    • D. 

      D. All the above are steps

  • 5. 
    A flexibility crisis is a rare unpredictable event. Select one:
    • A. 

      True

    • B. 

      False

  • 6. 
    Income dilution is not an income issue. Select one:
    • A. 

      A. TRUE

    • B. 

      B. FALSE

  • 7. 
    Debt mitigates the issue of control. Select one:
    • A. 

      True

    • B. 

      False

  • 8. 
    Which of the following is a flexibility issue ? Select one:
    • A. 

      A. debt capacity of the firm

    • B. 

      B. shareholder income

    • C. 

      C. dilution

    • D. 

      D. recurrent disasters that occur every three years

  • 9. 
    A crucial step in income analysis is the determination of a financing decision's impact on the dilution of the company's earnings. Select one:
    • A. 

      A. TRUE

    • B. 

      B. FALSE

  • 10. 
    An assessment of how effectively the firm can weather the financial consequences of a "disastrous occurrence" is the FRICTO step of Select one:
    • A. 

      A. Risk

    • B. 

      B. Flexibility

    • C. 

      C. Timing

    • D. 

      D. None of the above

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