Mcqb9

.docx
School
Greenwich English College **We aren't endorsed by this school
Course
BUSINESS 123
Subject
Finance
Date
Nov 16, 2023
Pages
2
Uploaded by SargentRiverPolarBear33 on coursehero.com
76. Question: Which financial ratio measures the ability of a company to meet its long-term debt obligations with its operating income? A. Debt-to-Equity Ratio B. Interest Coverage Ratio C. Quick Ratio D. Current Ratio Answer: B. Interest Coverage Ratio 77. Question: What is the purpose of the Efficient Market Hypothesis (EMH) in finance? A. To analyze a company's financial statements B. To predict future market trends C. To assess the efficiency of financial markets D. To calculate a company's cost of capital Answer: C. To assess the efficiency of financial markets 78. Question: What does the term "Working Capital" represent in financial management? A. Long-term investments in securities B. Short-term assets and liabilities C. The company's total assets D. The company's net income Answer: B. Short-term assets and liabilities 79. Question: In finance, what is the purpose of the Sharpe Ratio? A. To assess a company's liquidity B. To measure the performance of an investment relative to its risk C. To determine the cost of debt D. To evaluate the company's profitability Answer: B. To measure the performance of an investment relative to its risk 80. Question: What is the primary purpose of a Buyback Program in corporate finance? A. Issuing new shares to raise capital B. Reducing the number of outstanding shares in the market C. Increasing dividend payments to shareholders D. Acquiring other companies for expansion Answer: B. Reducing the number of outstanding shares in the market 81. Question: Which financial metric measures a company's ability to cover its short-term liabilities with its most liquid assets? A. Quick Ratio B. Debt-to-Equity Ratio
C. Return on Assets (ROA) D. Inventory Turnover Ratio Answer: A. Quick Ratio 82. Question: What does the term "Initial Margin" refer to in the context of futures trading? A. The first payment made to enter a futures contract B. The total value of a company's outstanding shares C. The profit earned on a futures contract D. The fee charged by a broker for executing a trade Answer: A. The first payment made to enter a futures contract 83. Question: What is the primary purpose of the Risk-Free Rate in finance? A. To measure a company's liquidity B. To assess the risk of an investment C. To calculate the company's cost of equity D. To represent the baseline return on a risk-free investment Answer: D. To represent the baseline return on a risk-free investment 84. Question: In finance, what does the term "Dividend Yield" represent? A. The percentage return on an investment B. The ratio of a company's debt to equity C. The value of a company's outstanding shares D. The annual dividend payment as a percentage of the stock's current market price Answer: D. The annual dividend payment as a percentage of the stock's current market price 85. Question: What does the term "Diversification" mean in investment strategy? A. Concentrating investments in a single asset B. Spreading investments across different assets to reduce risk C. Investing only in high-risk assets D. Timing the market to maximize returns Answer: B. Spreading investments across different assets to reduce risk
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