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Praxis Marketing: Finance Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

Page 1

Question 1 1. Tom works in accounting, and he has to prepare a budget that will take into account all of the activities of the company. There will be a strong investment from the acquisitions department that will impact their budget but is worth less than 2% of the company's value. Should Tom wait for a new report from the acquisition's department?

Question 2 2. Financial planning can best be defined as a process for making sure that _____.

Question 3 3. How are the responsibilities of a credit manager different from the responsibilities of a cash manager?

Question 4 4. What type of financing involves investors becoming creditors?

Question 5 5. Which of the following is NOT a feature of a stock offered to raise equity capital?

Page 2

Question 6 6. Barry takes out a 12 month loan from a bank to buy some new office equipment. The bank requires that Barry put up the equipment he is purchasing as collateral. What type of credit arrangement is involved?

Question 7 7. Which of the following is NOT true of investors that are issued debentures?

Question 8 8. Why might a company choose to sell preferred stock versus common stock?

Question 9 9. How is a secured loan different from an unsecured loan?

Question 10 10. What type of budget provides an estimation of costs and revenue regarding a long-term business venture or fixed asset?

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Question 11 11. Which type of credit involves the bank allowing a borrower to borrow money on an as needed basis up to a preset maximum?

Question 12 12. Saanya is a member of the financial management team of Crux Company Ltd. She deals exclusively with the company's accounting and financial reporting. What is Saanya's role?

Question 13 13. Why might a business choose trade credit over other forms of short-term financing?

Question 14 14. John is the owner of a small IT company. In exchange for a financial investment, he gave his friend Katerina 10% of the company. This is an example of what type of financing?

Question 15 15. How can a corporation raise equity capital?

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Question 16 16. Which part of financial management involves making decisions about the long-term investments the company will make?

Question 17 17. Who on a financial management team is in charge of making sure the company is appropriately insured?

Question 18 18. Kevin is an investment banker who wants to wine and dine with prospective clients. He may not have all of the cash he requires to pay. Why should he use a credit card?

Question 19 19. Which financial management activity involves determining the external resources that come into the company?

Question 20 20. Why are government grants considered the cheapest form of long-term financing?

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Question 21 21. Which of the following is the best explanation of short-term financing?

Question 22 22. Which of the following BEST defines long-term financing?

Question 23 23. Why is financial feasibility an important step in financial planning?

Question 24 24. How are raising money through equity and through debt similar for a business?

Question 25 25. After allocating the resources, a company CEO is trying to control and monitor the acquisition, allocation and utilization of the financial resources. Should the CEO even perform financial control?

Praxis Marketing: Finance Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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