Republic of the Philippines

Department of Education
Region III
SCHOOLS DIVISION OF ZAMBALES
Zone 6, Iba, Zambales
Tel./Fax No. (047) 602 1391
E-mail Address: zambales@deped.gov.ph
website: www.depedzambales.ph

Name: __________________________________ Grade/Section__________

School: _________________________________ Date: __________________

BUSINESS FINANCE
GRADE 12
Summative Examination 2

I. Multiple Choice: Choose the correct answer.

1. Which of the following deals with decisions that are supposed to maximize the value of shareholders’ wealth.
(Cayanan)
a. Financial managers b. financial management c. financial consultant d. financial investors
2. Which of the following is an ordinary share is a financial instrument whose holders do not have preferences
over each other?
a. common stock b. preference share c. stocks d. bond
3. The ______ is created by a financial relationship between suppliers and users of short-term funds.
A. financial market B. money market C. stock market D. capital market
4. Which of the following external sources a firm can obtain funds?
A. financial markets. B. private placement. C. financial institutions. D. All of the above.
5. A ______ is one financial intermediary handling individual savings. It receives premium payments that are
placed in loans or investments to accumulate funds to cover future benefits.
A. life insurance company B. commercial bank C. savings bank D. credit union
6. Which of the following is not a financial institution?
A. A pension fund B. A newspaper publisher C. A commercial bank D. An insurance company
7 . By definition, the money market involves the buying and selling of ____________.
A. funds that mature in more than one year. B. flows of funds. C. stocks and bonds. D. short-term funds
8 . Which of the following financial market where a corporation can issue new shares of stocks?
A. Secondary Market B. Primary Market C. Public Market D. Public Market

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9 . Which of the following financial market financial securities of publicly listed corporation traded following a
standardized contract agreement and procedure?
A. Secondary Market B. Primary Market C. Public Market D. Public Market
10. Financial managers evaluating decision alternatives or potential actions must consider
A. only risk. B. only return. C. both risk and return. D. risk, return, and the impact on share price.

III. ENUMERATION:
11-15. Give most common forms of financial Instrument.
16-20. Give Examples of financial Institution.
21-25. Give most common type of bonds.

IV. How would you relate the role of financial managers, role of financial markets and role of investors?

I.