KEIRSTIN PEPE BUSINESS FINANCE

12 ABM 05 FEBRUARY 10, 2022 Ms. Rovi Pua

Exercise 1 True or False
True 1. Business is an entity that is concerned with the production and distribution of goods and services for the purpose of
obtaining profit.

True 2. Providers (sellers) and users (buyers) of goods and services must co-exists to sustain a continuous flow of activity.

True 3. Business finance is the study of financial planning, asset management, and fund raising by businesses and financial
institution.

True 4. Investment involves the buying and selling of financial securities, the analysis made on an investment, and risk management.

False 5. Private finance is concerned with government spending and revenues and their general effect to the economy.

False 6. Public finance is subdivided into personal finance, non profit organizations, and business finance.

True 7. Accounting and finance are closely interrelated.

True 8. The primary goal of the finance manager is a profit-seeking organization is to maximize the owners' wealth.

True 9. Personal finance involves the lending of money to individuals.

True 10. Stock market is where publicly listed stocks are bought and sold fot the first time.
 KEIRSTIN PEPE BUSINESS FINANCE
12 ABM 05 FEBRUARY 10, 2022 Ms. Rovi Pua
Exercise 2 True or False

True 1. A universal bank can engage in both commercial banking and investment banking activities.

True 2. Credit unions are cooperative nonprofit organization that exist primarily to provide member deposition with consumer credit.

True 3. The principal assets of all depository institutions are cash, securities, and loans.

True 4. Demand deposit is just another term for checking account.

True 5. Investment banks sell shares to individuals and invest the pooled proceeds in corporate and government securities.

True 6. Mutual funds are open-end investment companies that can issue are unlimited number of shares to investors and used the
pooled proceeds to purchase corporate and government securities.

True 7. Demand deposits are issued by commercial banks and savings banks and do not earn interests.

True 8. Money consists of bills, coins, and gold bullions that are generally accepted payment for goods and services.

False 9. Barter system is the exchange of goods and services with the use of medium of exchange.

True 10. The main functions of money are medium od exchange, unit of account, amd market value.