SBA - QUIZ Final

11/3/23, 7:21 PM SBA: QUIZ (Final)
SBA: QUIZ (Final) Total points 24/30
Email *
japascua@usm.edu.ph
0 of 0 points
Last Name, First Name, MI. *
Pascua, Jayson, A.
Multiple Choice 24 of 30 points
The following are the common pricing strategies, except: * 2/2
a. Price Skimming
b. Physiological Pricing
c. Penetration Pricing
d. Discount Pricing
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In a feasibility study, the financial aspect can be divided into the following *2/2
major sections. Which is the exception?
a. Major financial assumptions
b. Capital Requirements/Investments
c. Projected Financial Statements
d. Organization Structure
Heart Motors and Chiz Automotive each have the same total assets, the *2/2
same level of sales, and the same return on equity (ROE). Heart Motors,
however, has less equity and a higher debt ratio than does Chiz
Automotive. Which of the following statements is most correct?
a. Chiz Automotive has a higher net income than Heart Motors.
b. Chiz Automotive has a higher profit margin than Heart Motors.
c. Chiz Automotive has a higher return on assets (ROA) than Heart Motors.
d. All of the Statements above are correct
Which method of evaluating capital investment proposals uses the *2/2

concept of present value to compute a rate of return?
a. Average rate of return
b. Payback period
c. Accounting rate of return
d. Internal rate of return
The Martin Company had a finished goods inventory of 55,000 units on *2/2
January 1. Its projected sales for the next four months were: January -
200,000 units; February - 180,000 units; March - 210,000 units; and April -
230,000 units. The Martin Company wishes to maintain a desired ending
finished goods inventory of 20% of the following months sales. What is
the budgeted production in January?
a. 236,000
b. 181,000
c. 200,000
d. 219,000
A feasibility study's _____________ reveals the business's overall financial *2/2

standing, including operating cash requirements, profitability, and cash
flow.
Financial Aspect
Profitability
Internal Rate of Return
Operating Capital
An approach of financial statement analysis which involves comparing *2/2

historical financial data over a number of accounting period to identify
trends, patterns, and changes in key financial metrics.
Trend Analysis
Vertical Analysis
Payback Period
This is considered as one of the best selection criteria and most widely *2/2
used in business as it addresses directly the goal of maximizing owner’s
wealth. It considers the magnitude and timing of cash flows and is
consistent with the objective of maximizing profits for the owners.
Profitability Index
Net Present Value
Horizontal Analysis
This is the process of evaluating and selecting long-term investment *0/2

projects that will ultimately maximize the firm’s goal of maximizing the
owner’s wealth.
CVP Analysis
Breakeven Analysis
Capital Budgeting
Debt-to-Equity Ratio
Correct answer
Capital Budgeting
A ratio that indicates how the business is funded by debt. * 2/2
Profitability Ratio
Activity Ratio
Quick Ratio
Debt-to-Equity Ratio
The financial aspect of a feasibility study presents the overall financial *2/2
picture of the business in terms of operating cash requirements,
profitability, and cash flows.
True
False
This refer to the estimates of future financial results that are derived from *2/2
past or historical data, an understanding of the business and its
operational strategy.
Financial Aspect
Cash Flow Statements
Financial Assumptions
Financial Analysis
These are the financial resources necessary for the business to achieve *2/2
its objectives.
Financial Requirements
Financial Assumptions
Cash Flows
Financial Analysis
This amount pertains to how much cash is needed to sustain the *0/2
operation of the business while waiting for the business to generate cash
to pay its cash operating and manufacturing expenses (if any).
Capital Contributions
Working Capital
Cash Flows
Project Cost
Correct answer
Working Capital
The proponent of the business needs to decide on the following: *0/2

a. How much funds are needed?
b. When and how long the funds are needed?
c. When and how long the funds are needed?
d. Whether the owner is willing to give up some control of the business in
exchange for investment?
a & b only
All except c
All except d
All of the above
Correct answer
All of the above
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11/3/23, 7:21 PM SBA: QUIZ (Final)

SBA: QUIZ (Final) Total points 24/30

Last Name, First Name, MI. *

Multiple Choice 24 of 30 points

The following are the common pricing strategies, except: * 2/2

a. Major financial assumptions

c. Projected Financial Statements

a. Chiz Automotive has a higher net income than Heart Motors.

b. Chiz Automotive has a higher profit margin than Heart Motors.

d. All of the Statements above are correct

Which method of evaluating capital investment proposals uses the *2/2

a. Average rate of return

c. Accounting rate of return

d. Internal rate of return

A feasibility study's _____________ reveals the business's overall financial *2/2

Internal Rate of Return

An approach of financial statement analysis which involves comparing *2/2

Internal Rate of Return

Net Present Value

Internal Rate of Return

This is the process of evaluating and selecting long-term investment *0/2

A ratio that indicates how the business is funded by debt. * 2/2

Cash Flow Statements

The proponent of the business needs to decide on the following: *0/2

All of the above

All of the above

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