Question 1

________ is the study of how individuals, institutions, and businesses acquire, spend and manage money and other financial resources.    

Question 2

Finance has its origins in:

a. economics and statistics

b. accounting and sociology

c. accounting and economics

d. psychology and mathematics    

Question 3

Successful businesses typically progress through a series of life-cycle stages—from the idea stage to exiting the business; these five stages include the:

a. development stage, startup stage, survival stage, rapid growth stage, and maturity stage.

b. idea stage, design stage, operating stage, rebuilding stage, and decline stage

c. development stage, operating stage, rebuilding stage, rapid growth stage, and maturity stage

d. idea stage, startup stage, rapid growth stage, survival stage, and decline stage    

Question 4

The six principles of finance include (1) Money has a time value, (2) Higher returns are expected for

taking on more risk, (3) Diversification of investments can reduce risk, (4) Financial markets are efficient in

pricing securities, (5) Manager and stockholder objectives may differ, and (6) Reputation matters.

a. True  

b.  False