1. An asset or item acquired with the goal of generating income or appreciation. a. Income C. Appreciation b. Cost of Asset d. Investment 2. The current value of a future sum of money or stream of cash flows given a specified rate of return. a. Future Value C. Past Value b. Present Value d. Net Value 3. The amount of money you receive from an investment. a. Return c. Liability b. Risk d. Expense 4. A financial ratio that calculates the return on an investor's investment in relation to the cost of the investment. a. Internal Rate of Return c. Residual Income b. Return on Investment d. Capital Investment Ratio 5. The internal rate of return (IRR) is a financial statistic that is used to calculate the profitability of possible investments. a. Internal Rate of Return c. Residual Income b. Return on Investment d. Capital Investment Ratio 6. An organizational structure in which top management delegated decision-making and day-to- day operations to middle and lower management levels. a. Centralization c. Matrix Structure b. Decentralization d. Flatarchy Structure1. Which is true on Lorenz Curve? a. Households are first organized according to their respective household incomes, from the lowest to the highest. b. Perfect inequality exists when all households attained the same income c. Perfect equality exists when not all the households attained the same income d. Both B and C 2. Which of the following situations illustrate poverty? a. Students who cheat on the exam b. Corruption on the government c. A family that cannot afford the basic necessities of life d. All of the Above 3. Which of the following situation best depict poverty? Situation I. A family that is willing to purchase but cannot afford the luxury items Situation 2. A family that is not willing to purchase but can afford the luxury items a. Only Situation I c. Both Situation I and 2 b. Only Situation 2 d. None of the situation 4. Which of the following statements is true about health and education in Economic Development? Statement 1. There is an economic development when education is prioritized rather than health Statement 2. There is an economic development when health is prioritized rather than education a. Only Statement I c. Both Statement 1 and 2 b. Only Statement 2 d. None of the Statements7. Refers to revenue that continues to be received after the income-producing work has been completed. a. Economic Value Added c. Residual Income b. Passive Income d. Long investment Income 8. A cash-based measure of a company's financial success computed by subtracting its cost of capital from its operational profit. a. Economic Value Added c. Residual Income b. Passive Income d. Long investment Income 9. Ripple Company purchased a land for $3,000,000. After 6 years they sell the land to SEC company for $7,000,000. What is the ROI? a. 42.86% c. 133.33% b. 75.00% d. 233.33% 10. If Shiba Inu Corporation has a total of net operating income amounting to $2,350,000 with the minimum required return of 35% . What is the residual income of Shiba Inu Corporation if the cost of their operating asset is $6,000,000