ASSESSMENT

Essay
1. Why is earning profit considered as only one of the objectives of business?
2. Business firms have multiplier effects in an economy. Explain.
3. What is the role of the vice president for finance organization?

Fill in the blank. Write your answer on the space provided before each item.
________________1. The ability to continue existing as a going concern despite the
up-and-downs in an economy.
________________2. The amount of long-term capital that is made to revolve in
conducting operations.
________________3. Cash management, procurement of funds and investors relations
are some of his functions.
________________4. He takes care of internal functions
________________5. The number of years or length of period it takes to recover
investments in a given project.
________________6. It refers to distribution of corporate earning to stockholders.
________________7. It refers to increase in fair value of the net asset of an economic
entity.
________________8. The margin of safety to creditors.
________________9. The chance of incurring financial loss.
________________10. It refers to the amount of net income that a corporation realizes
for every outstanding share of its capital stock.