Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Concept explainers
Financial Ratios
A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.
Return on Equity
The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.
Topic Video
Question
answer these question
![22. It may be measured in terms of increase in assets
that appreciate in value.
a. Stability
b. Growth
c. Owners Equity
d. Profit
23. It is the difference between the total assets and the
total liabilities of an entity.
a. Stability
b. Growth
c. Owners Equity
d. Profit
24. One of the primary goal of the business where
funds are invested in a business to earn sufficient
return on investment.
a. Stability
b. Growth
c. Owners Equity
d. Profit
25. It refers to the business owner's contribution to the
improvement of the quality of life in the
community.
a. Social Responsibility
b. Social Grace
c. Foundation
d. Outreach Program
26. He takes part in the corporate, strategic and
operational planning in an enterprise.
a. Corporate Manager
b. Treasurer
c. Financial Manager
d. Controller
27. It must be made available at the least cost when it
is needed.
a.
Assets
b. Capital
29. The art and science of managing money.
a.
Business Finance
b. Financial management
c. Accounting
d. Finance
30. He is one whose liability for partnership debts is
limited to his capital contribution.
a. Limited Partner
b. Capitalist Pacotec
c. Office Management
d. Partnership
31. It is a thorough and systematic analysis of all
factors to ascertain the viability of an undertaking.
Feasibility Study
a.
b. Partnership
c. Financing Aspect
d. Management Aspect
32. It is limited to selected person or members of the
family.
a. Domestic Corporation
b. Close Corporation
c. Open Corporation
Foreign Corporation
d.
33. It is open to any person who may wish to become
shareholder or member.
Domestic Corporation
a.
b. Close Corporation
c. Open Corporation
d. Foreign Corporation
34. It was incorporated under the law of foreign
countries.
a. Domestic Corporation
b. Close Corporation
c. Open Corporation
d. Foreign Corporation
35. He takes care of the internal finance functions.
Controller](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F897854d9-26ec-4fc4-8b4c-bbbef4c0d120%2Fd6fb6714-bcd4-4bfc-8598-6b2e39d414a5%2Fkgx7rbr_processed.png&w=3840&q=75)
Transcribed Image Text:22. It may be measured in terms of increase in assets
that appreciate in value.
a. Stability
b. Growth
c. Owners Equity
d. Profit
23. It is the difference between the total assets and the
total liabilities of an entity.
a. Stability
b. Growth
c. Owners Equity
d. Profit
24. One of the primary goal of the business where
funds are invested in a business to earn sufficient
return on investment.
a. Stability
b. Growth
c. Owners Equity
d. Profit
25. It refers to the business owner's contribution to the
improvement of the quality of life in the
community.
a. Social Responsibility
b. Social Grace
c. Foundation
d. Outreach Program
26. He takes part in the corporate, strategic and
operational planning in an enterprise.
a. Corporate Manager
b. Treasurer
c. Financial Manager
d. Controller
27. It must be made available at the least cost when it
is needed.
a.
Assets
b. Capital
29. The art and science of managing money.
a.
Business Finance
b. Financial management
c. Accounting
d. Finance
30. He is one whose liability for partnership debts is
limited to his capital contribution.
a. Limited Partner
b. Capitalist Pacotec
c. Office Management
d. Partnership
31. It is a thorough and systematic analysis of all
factors to ascertain the viability of an undertaking.
Feasibility Study
a.
b. Partnership
c. Financing Aspect
d. Management Aspect
32. It is limited to selected person or members of the
family.
a. Domestic Corporation
b. Close Corporation
c. Open Corporation
Foreign Corporation
d.
33. It is open to any person who may wish to become
shareholder or member.
Domestic Corporation
a.
b. Close Corporation
c. Open Corporation
d. Foreign Corporation
34. It was incorporated under the law of foreign
countries.
a. Domestic Corporation
b. Close Corporation
c. Open Corporation
d. Foreign Corporation
35. He takes care of the internal finance functions.
Controller
![37. It refers to the procurement of the initial capital
that the proposed business requires to be able to
operate profitably.
a. Feasibility Study
b. Financing Aspect
c. Management Aspect
d. Technical Aspect
38. It refers to the activities involved in making a
business ready to operate.
a. Entrepreneurship
b. Assembling
c. Promotion
d. Discovery
39. The margin of safety to the creditors.
a. Profit
b. Owner's Equity
C. Stocks
d. Securities
40. The length of period or number of years during
which benefits may be derived from a given project.
a. Economic Life
b. Social Life
c. Payback Period
d. Stability
41. The number of years or length of period it takes to
recover investment in a given project.
a. Economic Life
b. Social Life
c. Payback Period
d. Stability
42. The ability to continue existing as a going concern
despite the ups and downs in an economy.
a. Economic Life
b. Growth
c. Payback Period
d. Stability
44. The amount of debt used to finance a firm's assets.
Coverage Assets
b. Fixed Assets
a.
c. Diversification
d. Leverage
45. It is an association of two or more persons who
bind themselves to contribute money, property, or
industry to a common fund.
a. Sole Proprietorship
b. Cooperative
c. Partnership
d. Corporation
46. It refers to all the persons composing a corporation
whether they are stockholders or members.
a. Incorporators
b. Corporators
c. Capitalist
d. Capitalist Partner
47. It refers to an individual's undertaking whereby he
invests his money in a business which he manages.
a. Entrepreneurship
b. Assembling
c. Promotion
d. Discovery
48. This may refers to the contribution by partner of all
present property or of all profits.
a.
Limited Partnership
b. Universal Partnership
c. Domestic Corporation
Foreign Corporation
d.
49. It includes the research made on actual and
potential demand for the product, competition,
selling price and marketing plans.
a. Planning
b. Discovering
c. Marketing
d. Financing](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F897854d9-26ec-4fc4-8b4c-bbbef4c0d120%2Fd6fb6714-bcd4-4bfc-8598-6b2e39d414a5%2Fleno06g_processed.png&w=3840&q=75)
Transcribed Image Text:37. It refers to the procurement of the initial capital
that the proposed business requires to be able to
operate profitably.
a. Feasibility Study
b. Financing Aspect
c. Management Aspect
d. Technical Aspect
38. It refers to the activities involved in making a
business ready to operate.
a. Entrepreneurship
b. Assembling
c. Promotion
d. Discovery
39. The margin of safety to the creditors.
a. Profit
b. Owner's Equity
C. Stocks
d. Securities
40. The length of period or number of years during
which benefits may be derived from a given project.
a. Economic Life
b. Social Life
c. Payback Period
d. Stability
41. The number of years or length of period it takes to
recover investment in a given project.
a. Economic Life
b. Social Life
c. Payback Period
d. Stability
42. The ability to continue existing as a going concern
despite the ups and downs in an economy.
a. Economic Life
b. Growth
c. Payback Period
d. Stability
44. The amount of debt used to finance a firm's assets.
Coverage Assets
b. Fixed Assets
a.
c. Diversification
d. Leverage
45. It is an association of two or more persons who
bind themselves to contribute money, property, or
industry to a common fund.
a. Sole Proprietorship
b. Cooperative
c. Partnership
d. Corporation
46. It refers to all the persons composing a corporation
whether they are stockholders or members.
a. Incorporators
b. Corporators
c. Capitalist
d. Capitalist Partner
47. It refers to an individual's undertaking whereby he
invests his money in a business which he manages.
a. Entrepreneurship
b. Assembling
c. Promotion
d. Discovery
48. This may refers to the contribution by partner of all
present property or of all profits.
a.
Limited Partnership
b. Universal Partnership
c. Domestic Corporation
Foreign Corporation
d.
49. It includes the research made on actual and
potential demand for the product, competition,
selling price and marketing plans.
a. Planning
b. Discovering
c. Marketing
d. Financing
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