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Quiz I

This document contains a quiz about finance concepts. The quiz has two sections - a multiple choice section with 5 questions about why companies need capital and what they use short-term and long-term capital for. The second section contains 10 true/false statements about financing concepts like how companies manage their finances, what short-term and long-term capital is used for, and the definition of financial management. The student is to fill in their answers in the boxes provided.

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សារុន កែវវរលក្ខណ៍
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44 views

Quiz I

This document contains a quiz about finance concepts. The quiz has two sections - a multiple choice section with 5 questions about why companies need capital and what they use short-term and long-term capital for. The second section contains 10 true/false statements about financing concepts like how companies manage their finances, what short-term and long-term capital is used for, and the definition of financial management. The student is to fill in their answers in the boxes provided.

Uploaded by

សារុន កែវវរលក្ខណ៍
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Name: ________________________________

No: ______
Date: ____ / ____/ ____
QUIZ I
SESSION 5: WHY FINANCE?
I. MULTIPLE CHOICE QUESTION (05 MARKS)
CHOOSE THE CORRECT ANSWER AND FILL THE BOX ONLY:

1. A corporation needs capital for:
a. Deposit in bank for gaining interest
b. Purchasing personal equipment
c. Operate and expand the business
d. Buying bonds or stock
2. A company utilizes short-term capital to pay for:
a. Items that last a short period of time
b. Business expansion
c. Purchasing new equipment
d. Pay to shareholders
3. The following are considering as long-term capital except ONE. Choose the ONE that is not
belong to long-term capital.
a. Improve the product technique
b. Create the product line
c. Repair the broken product machinery
d. Acquiring for future expansion of the business
4. The other term of MONEY that is using in finance is called:
a. Cost
b. Capital
c. Fund
d. None of above is correct
5. The process of managing the capital of business is known as:
a. Financial Management
b. Accounting Management
c. Capital Management
d. Fund Management

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II. TRUE/FALSE STATEMENT (15 MARKS)
WRITE T (TRUE) OR F (FALSE) ON THE BOX PROVIDED ONLY
1. Long-term financing is used by a company to purchase new equipment and to construct additional
facilities.
2. How well a company manages its finances may be acquired from outside sources.
3. Finance involves the securing of funds for all phases of business operations.
4. Because of competition in the market, capital needs to be invested in developing new product lines
and production techniques and in acquiring assets for future expansion.
5. In general, a business that is able to manage its finances successfully will continue to exist.
6. A new business only needs capital to meet day-to-day expense.
7. A company utilizes short-term capital to pay all items that last longer than a year.
8. Finance is securing and utilizing capital to start up, operate and expand the company.
9. The money needed to start and continue operating a business is known as fund.
10. A new business can use either short-term or long-term capital to maintaining their capital.

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