Business Finance - SY2223-1T

Question 1
True or false

Interests paid on debt are tax deductible.

True      False 

Correct answer: True

Question 2
True or false

Financial distress is when businesses fail to pay their creditors.

True      False 

Correct answer: False

Question 3
True or false

Short-term debt is generally used to finance assets, such as buildings and equipment.

True      False 

Correct answer: False

Question 4
True or false

Secured debt uses collateral.

True      False 

Correct answer: True

Question 5
True or false

Most of a universal bank's clients are retail customers.

True      False 

Correct answer: False

Question 6
True or false

Both banks and non-banks are regulated by the Bangko Sentral ng Pilipinas (BSP).

True      False 

Correct answer: False

Question 7
True or false

Insurance companies manage mutual funds.

True      False 

Correct answer: False

Question 8
True or false

A business' bank credit depends on the business's ability to pay and the amount of
credit available in the banking institution.

True      False 

Correct answer: True

Question 9
True or false

An unstable economic situation may negatively affect a loan application.

True      False 

Correct answer: True

Question 10
True or false
Debt credit occurs when the company is unlikely to pay its debts.

True      False 

Correct answer: False