Question
Procedure followed when electing a company's board of directors ? cumulative voting statutory voting voting right straight voting It is called as certificate of indebtedness
Procedure followed when electing a company's board of directors ?
cumulative voting
statutory voting
voting right
straight voting
- It is called as certificate of indebtedness
a) Shares of stock
b) Marketable securities
c) Bonds
d) Promissory note
2. The common stockholders also receive dividend even if the corporation registered a loss in operations*
True
False
9. Stocks are also called certificates of indebtedness
True
False
12. The common thread among investment assets is*
a) They are purchased for the purpose of generating wealth
b) They are purchased for one' personal use, like a vehicle
c) They provide the necessary liquidity in case of an emergency
d) They must be easily turned into cash with little or no loss in value
24. Which of the following will not affect your ability to manage your liquidity ?*
a) Deciding how much money to keep in savings
b) Choosing between credit cards
c) Determining how much money to save versus how much to spend
d) Building and maintaining a monthly and yearly budget with allocations to expenses and investments
7. An unusual type of dividend involving the distribution of promissory notes that call for the payment in the latter day is*
a) Cash dividend
b) Stock dividend
c) Property dividend
d) Scrip dividend
6. The house you are leasing from the landlord is a good example of a tangible asset that you would list in your balance sheet.
True
False
20. Which of the following is not an asset ?*
a) The house that you rent
b) Your car, which you financed
c) Your coin collection given to you by your grandfather
d) Your textbooks
10. A privilege that may be extended to certain shareholders of a corporation that grants them the right to purchase additional shares in the company prior of being made available for purchase by the general public is
a) Voting right
b) Right to sell its own stock
c) Preemptive right
d) Statutory right
19. The best measure of a person's or family's net wealth is
a) The highest level of education received
b) The amount of annual income
c) The value of what they own minus the value of what they owe
d) Their tax bracket
5. Also known as "aka" straight voting
a) Cumulative voting
b) Statutory voting
c) Straight voting
d) Proxy voting
Other:
2. Which type of expenditure would probably be the hardest for an individual to track ?
credit card
automatic payments
cash
checks written
9. A dividend paid to shareholders in anything other than cash is
a) Cash dividend
b) Stock dividend
c) Property dividend
d) Scrip dividend
Other:
3. Sometimes known as proportional voting
cumulative voting
statutory voting
straight voting
proxy voting
10. Your budget is influenced by your income, which in turn is influenced by your education and career decisions*
True
False
15. Rising interest rates cause bond prices to also rise while bond yields increase*
True
False
14. To properly manage your money you should use a credit card only if you will have the cash to cover the payment when you receive your credit card statement*
True
False
11. Budgets have to be exact and inflexible to work properly
True
False
22. Which of the following would be classified as a short-term goal ?
a) Purchasing a new house in three years
b) Buying new clothes this month
c) Retiring in 10 years
d) Paying for your two-year old child's college education
7. An example of opportunity cost is the cost of tuition while attending college instead of the hourly rate you could earn from being employed
True
False
4. Understanding of personal finance is necessary to judge the quality of advice that a financial adviser may give.
True
False
5. Bonds offer a fixed amount of interest for a fixed period of time.
True
False
13. If you do not have access to money to cover your cash needs, you may have insufficient liquidity
True
False
8. Net income is used in calculating one's net worth.
True
False
17. Which of the following is an example of money management ?
a) Putting your money in a savings account at your bank
b) Shopping around for the credit card with the best interest rate
c) Deciding to delay buying a new car until you can pay for it in cash
d) Paying off a loan early to reduce the interest charges
23. Suppose you have a credit card balance of P25,000 that you were unable to pay off. During the current month you purchase another P 12,500 worth of products. You made a payment during the grace period of P15,000. Assuming your retail credit card company charges an annual interest rate of 20%, What is your new balance ?
a) P15,500
b) P14,500
c) P 12,500
d) P 22,700
13. The deadline for confirming redemption of bonds before its redemption date is
a) 3 months
b) 6 months
c) 9 months
d) One (1) year
8. Liabilities are best described as
a) Monetary items of value that you own
b) Financial debts and obligations that you owe
c) Your net worth
d) Assets that depreciate overtime
4. You know you are insolvent when
Your expenses exceed your income
Your assets are less than your liabilities
Your net worth is negative
Both "b" and "c" above
1. Preferred stockholders usually receive higher dividend payments compared to common stockholders
True
False
6. The most common type of dividend is
a) Cash dividend
b) Stock dividend
c) Property dividend
d) Scrip dividend
18. The income in your budget is not affected by
a) your education
b) your career decisions
c) the tax laws
d) The standard of living you experienced as a child
14. Holders of these stocks are called residual owners in the company*
a) Common stockholders
b) Preferred stockholders
c) Ordinary stockholders
d) Treasury stockholders
25. To increase your savings
a) Income must be increased
b) Expenses must be increased
c) Income must be decreased
d) Net worth must be decreased
16. A type of insurance that can be used to protect assets is
a) Home insurance
b) Self-insurance
c) Disability insurance
d) Deductible policy
12. If the employee will not work on a regular holiday, he shall receive 100% of his regular daily wage.
True
False
3. Before you can hope to achieve your financial goals, you will need first to measure your current financial health and develop a plan and a budget.
True
False
11. Stockholders considered to be a bit safer but don't usually receive voting rights
a) Common stockholders
b) Preferred stockholders
c) Special stockholders
d) Treasury stockholders
21. Assets that you purchase for the purpose of accumulating wealth to satisfy you are called*
a) Monetary assets
b) Intangible assets
c) Investment assets
d) All the choices are correct
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