Republic of the Philippines

Department of Education
DIVISION OF CITY SCHOOLS, CITY OF NAGA
DON EMILIO CANONIGO SENIOR HIGH SCHOOL
PANGDAN, CITY OF NAGA, CEBU
School ID: 303002

WEEK 1 TEST QUESTIONAIRE FOR BUSINESS FINANCE

Test Question ( Multiple-Choice) Level No. of
points
DIRECTION: Read each item carefully and write the letter of your chosen Easy Avera Diffic Answer
answer. (40% ge ult (10 pts.)
or 4
30% (30%
pts.)
or 3 or 3
pts.) pts.)

1. Lyka is the one responsible in making investment, financial and 1 B

dividend policy-making decisions of the firm?
a. Creditors b. Finance manager c. Employees d.
Supplier

2. One right goal for managers is to _________. 1 C

a. maximize their own remuneration and perks c. maximize
shareholders’ wealth
b. improve working condition of employees d. increase
the market share

3. Which is a part of top management of the company? 1 A

a. Chief Executive Officer c. Creditors
b. Suppliers d. Vice President in
Finance
 Republic of the Philippines
Department of Education
DIVISION OF CITY SCHOOLS, CITY OF NAGA
DON EMILIO CANONIGO SENIOR HIGH SCHOOL
PANGDAN, CITY OF NAGA, CEBU
School ID: 303002

4. Which is a NOT a factor that influence market price? 1 A

a. Profitability b. Competent management c. Political
stability d. Marketing strategy

5. Which is concerned with allocating, raising, and controlling of the 1 A

funds of the firm?
a. finance b. budgeting c. financial management
d. accounting

6. Decision making process that involves planning, acquiring, and 1 C

utilizing of funds that considers the risk return trade-offs, to
maximize the owners’ or shareholder’s wealth.
a. Finance b. Marketing c. Financial Management
d. Manufacturing

7. How to distinguish working capital? 1 A

a. Short-term assets such as cash, accounts receivables,
inventories, and short-term liabilities such as accounts payable and
short-term loans, that involves various activities related to the
firm’s inflow and outflow of cash.
b. Determination of the total amount of funds that a firm can
commit for investment.
c. Funds that consider the risk return trade-offs, to maximize the
owners’ or shareholder’s wealth.
d. all of the above
 Republic of the Philippines
Department of Education
DIVISION OF CITY SCHOOLS, CITY OF NAGA
DON EMILIO CANONIGO SENIOR HIGH SCHOOL
PANGDAN, CITY OF NAGA, CEBU
School ID: 303002

8. Deals with identifying the optimal dividend distribution to be 1 D

issued to owners, the rate of payments made, and profit retained
for the firm.
a. Operating Decisions b. Financing Decisions c.
Investment Decisions d. Dividend Policies

9. How to determine the total amount of funds that a firm can 1 C

commit for investment.
a. by operating Decisions c. by investment Decisions
b. by financing Decisions d. by dividend Policies

10. Why is financial management important in business? 1 A

a. A larger discipline that deals with ways of raising and
distributing capital, use of money, and considers and evaluates
the impact of risk involved.
b. Deals with identifying the optimal dividend distribution to be
issued to owners, the rate of payments made, and profit
retained for the firm.
c. It can produce more products and services in the entire
quarter.
d. It involves planning, acquiring, and utilizing of funds.

Prepared by:
 Republic of the Philippines
Department of Education
DIVISION OF CITY SCHOOLS, CITY OF NAGA
DON EMILIO CANONIGO SENIOR HIGH SCHOOL
PANGDAN, CITY OF NAGA, CEBU
School ID: 303002

MARIZ B. AÑIRO
Teacher II Checked by:

PATRICIO M. MANUNDAN
School Head