MULTIPLE CHOICE QUESTIONS (IN ORDER) - 3rd PART - BUSINESS ECONOMICS

YEAR 2001.- The operation that consists of that a bank advancing the owner of a bill of exchange the payment before the due date is called:
1. Bill of exchange discount
2. Payment of a debt
3. Deferred payment
The cash conversion cycle is related to:
1. The fixed assets renovating cycle
2. The operating cycle
3. The financing used in the investments
The cash-flow of an investment refers to:
1. The difference between the revenues and the expenses of an investment
2. The difference between the profits and the loss of an investment
3. The difference between the collections and the payments of an investment
Payback is:
1. The cash conversion cycle
2. The average time to recover an invested unit in the depreciation cycle
3. The time period to recover the initial investment or outlay
Bonds are:
1. Proportional parts of a loan
2. Proportional parts of the share capital
3. The dividends that have been paid to the shareholders
What is IRR?
1. It's the profit of an investment and valued in the present time
2. It's the interest rate that makes the net present value equal to zero
3. The time period to recover an investment
What is leasing?
1. A way to finance the fixed assets
2. An employment contract
3. A contract with a bank to get a loan
Running credits aim to:
1. Finance the current assets
2. Finance the non-current assets
3. None of these is correct
Working capital is the difference between:
1. The long term capitals and the current assets
2. Current assets and current liabilities
3. Non-current assets and current liabilities
A premium of issuing of shares is:
1. The difference between the nominal value and the conversion value
2. The difference between the refund value and the nominal value
3. The difference between the issuing value and the nominal value
The cash conversion cycle is:
1. The raw material conversion period + the goods in process conversion period + the finished goods conversion period + the receivables conversion period
2. Only the goods in process conversion period + the finished goods conversion period
3. The average period to produce the goods, since the raw material go into the production process till the finished goods go out the warehouse
What is a loan?
1. A current account credit
2. A resource of external financing divided in equal parts named bonds
3. A loan that the businessman gives to the firm
The issuing of bonds is a financing resource that we call:
1. Shareholder's equity
2. Long term capitals
3. Internal resources
Choose the correct sentence:
1. The working capital is equal to the non-current assets minus the current assets
2. The working capital is equal to the long term capitals minus the current assets
3. The working capital is equal to the long term capitals minus the non-current assets
The cash conversion cycle is:
1. The time that it takes to produce the goods in the firm
2. The time that the products are stored in the firm
3. The average length of the operating cycle
Pre-emption right exits:
1. Because of the loss of value of the shares of a corportation as a consequence of an increase in capital
2. Because of the need to guarantee the shareholders' personality by avoiding the admission of new shareholders, that the existing shareholders don't like
3. Because it guarantees to the corporation that increase in capital a higher revenue from the sale of new shares
When the current assets are lower than the current liabilites it is said that:
1. The working capital is negative
2. The working capital is positive
3. There is a financial stability
The depreciations due to the firm's assets wear:
1. Don't have accounting effects
2. Don't have an effect in the Profit and loss statement
3. Are entered in the books in the firm's assets with minus sign
When a firm sells its accounts receivable to another firm, we are defining:
1. Leasing
2. Bill of exchange discount
3. Factoring
The main characteristics of an investment are::
1. Ease financing
2. Liquidity and profitability
3. Liquidity, profitability and security
The cash conversion cycle is:
1. The average length of the operating cycle
2. The average length of the fixed assets
3. The average length of the issuing of bonds
We call book value of a share to:
1. The assets of a Public Limited Company (PLC) minus the net worth divided by the number of shares
2. The non-current assets divided by the number of shareholders
3. The capital of the firm plus the reserves divided by the number of shares
Factoring is:
1. Rent of the accounts receivable
2. Rent with an option to buy
3. The buying and selling of the accounts receivable
What are the things that define an investment?
1. The number of fixed assets that we buy and the number of businessman's investments
2. The payment of the investment, the cash-flows and the useful life of the investment
3. The cash-flows of the five first years and the interest rate
What are bills of exchange?
1. The outcome from the sale of the products
2. The outcome of the purchase of raw materials
3. The bill of exchange
The share capital is a/an . . . financing
1. Equity
2. Internal
3. Mixed
The working capital is:
1. The paid up capital plus the reserves
2. The part of the non-current assets that is financed with long term resources
3. The part of the current assets that is financed with long term resources
We must do the transfer of invoices and, in general, the accounts receivable to a firm of:
1. Factoring
2. Leasing
3. Renting
The amortization is:
1. The amounts that we get from profits to cover the depreciation of the elements of non-current assets
2. A financing credit
3. Shareholders' investment to buy a new non-current assets
Cash-flow is:
1. The profit that we get from an investment
2. The sales minus the amortization
3. The difference between the collections and the payments from an investment in a certain period of time
We call book value of a share:
1. The assets of a Public Limited Company (PLC) minus the net worth divided by the number of shares
2. The non-current assets divided by the number of shareholders
3. The net worth divided by the number of shares
The Internal financing resources are:
1. Reserves, the Net Income of the period and the Depreciations
2. The share capital and the issuing shares premiums
3. The share capital and the reserves
Which of the following investment profitability Indexes can we express in years?
1. Net Present Value
2. Payback
3. Internal Return Rate
When the working capital is negative we say that:
1. The Fixed assets are financed with long term resources
2. The Assets are higher than the Net worth plus the Liabilities
3. The part of the Fixed Assets is financed with Current Liabilities
What are the long term resources of a firm?
1. The current liabilities
2. The Net worth plus the non-current liabilities
3. The Fixed assets plus the non-current liabilities
Pre-emption right is:
1. An agreement between the shareholder and the firm to obtain the firm's products at a lower price
2. A compensation that is offered by the corporation, due to the possible dilution effect that could produce for the shareholder with the increasing of capital offered by the corporation
3. A promissory note issued by the corporation to compensate the shareholder with the possible variations of the market price of the shares
Factoring is:
1. The issuing of shares under par
2. The renting of a good with the option to buy it
3. The sale of some accounts receivable over a customer to other firm
Bonds are:
1. Parts of a loan that are taken by the issuing corporation
2. Part of the capital of a Public Limited Company
3. Resources that the own firm has created
The financing of assets by means of a renting contract with the option of buying them is called:
1. Leasing
2. Factoring
3. Bill of exchange discount
Liabilities are:
1. Those that come from the corporation's activity
2. Those that come from, among others, financial entities
3. Those that come from reserves and non distributed profits
YEAR 2002.- If we talk about security prices we are talking about the:
1. Financial Market
2. Stock Market
3. Banking Market
The working capital is the difference between:
1. Non-current assets minus current assets
2. Non-current liabilities minus current liabilities
3. Long term capitals minus non-current assets
If the working capital is negative:
1. The current assets are higher than the current liabilities
2. The current assets are lower than the current liabilities
3. The current liabilities are higher than the non-current liabilities
Which of the following is an internal financing source?
1. Loans
2. Factoring
3. Amortizations
The main characteristics of an investment are:
1. Liquidity and profitability
2. Liquidity and security
3. Liquidity, profitability and security
The cash conversion cycle is:
1. The average length of a financial asset
2. The average length of a machinery
3. The average length of the operating cycle
A limited company has a share capital of 50,000 €, divided in shares of a nominal price of 200 €, how many shares are there in its capital?
1. 100
2. 500
3. 250
A negative working capital means:
1. A bankruptcy of the firm
2. That the Net worth plus the liabilities are higher than the assets
3. That the current liabilities are higher than the current assets
The money used to finance the current assets are:
1. Running credits
2. Financing credits
3. Loans
Which of the following financing sources is an internal financing?
1. Increases in capital
2. Reserves
3. Factoring
The investments that start projects that the firm hasn't made previously are:
1. Investments of renovation
2. Investments of innovation
3. Investments technological capital
The part of the current assets that is financed with long term capital is:
1. Break-even point
2. Solvency rate
3. Working capital
What is the technical amortization of the fixed asset?
1. The refund of the money that people have lent to us to buy the fixed assets
2. The estimate of the depreciation of the fixed assets
3. The estimate of the time that its activity in the firm will last
What is the stock exchange?
1. The place where the agricultural products are auctioned
2. The place where the long term loans are agreed
3. The place where people can buy and sell shares
Bonds are:
1. Passive dividends
2. Equal parts of a loan
3. Quotas to pay of a loan
Equity is:
1. The capital and the reserves
2. The capital and the current liabilities
3. The cash assets
A Public Limited Company uses the internal financing when:
1. It doesn't give to the shareholders the profits of the year, and they go to reserves
2. It obtains a loan from a bank
3. The payment of the debt with the short term commercial suppliers is postponed
Leasing is an operation:
1. of financial renting
2. of banking loan
3. of sale of accounts receivable over customers of a bank
The shares can be issued:
1. At par, over par and under par
2. At par and over par
3. At par and under par
Factoring involves the sale of the firm to a financial middleman of:
1. Accounts receivable to obtain inmediate liquidity at a low cost
2. Accounts receivable to obtain inmediate liquidity at a high cost
3. Accounts receivable in exchange for part of the share capital of a company
We call maintenance internal financing:
1. Amortizations and the provisions
2. Firm debts with suppliers of productive factors
3. Short term banking loans
In the shares that we have issued over par:
1. The issuing value is the same as their market value
2. The issuing value is higher than their theoretical value
3. The issuing value is higher than their nominal value
The internal financing that, at the same time, is equity are:
1. Reserves, remaining, profit of the year, and amortizations
2. Current account credits, loans, bill of exchange discount, and factoring
3. Share capital, subventions in capital, and issuing premiums
What is NPV?
1. The interest rate that makes the Net Present Value equal to zero
2. The time to recover the investment
3. The profit of an investment that is valued now
Working capital is zero when:
1. Current assets = Current liabilities
2. Current assets = Non-current liabilities
3. Non-current assets = Net worth
Productivity is:
1. The ratio between the profits of a period and the invested capital
2. The ratio between the sales of a period and the total assets
3. The ratio between the production of a period and the resources that we have used to obtain it
When a factor incorporates quickly to the final product, we are talking about:
1. Direct cost
2. Indirect cost
3. Financial cost
The cost of the car insurance for a taxi driver is:
1. A variable cost
2. A total cost
3. A fixed cost
Stock breaking is:
1. The damage of a product
2. The breakdown in the wharehouse
3. To run out the stocks of a product
Fixed costs are:
1. Independents of the output
2. All the firm's expenses
3. All the expenses that we have had to obtain the product
The cost occurs when:
1. The factors of production are bought
2. The purchased factors are consumed
3. The purchased factors of production are paid
Which of these is a variable cost?
1. Consumed energy
2. Rent
3. Economic Activities Tax
Productivity is:
1. The ratio between the spended and the obtained money for a firm in a time period
2. The ratio between the output in the present period and the output that we expect to get in the following period
3. The ratio between the obtained amount of product and the used amount of factors during a time period
The consumption of a factor that incorporates quickly to the final product, is:
1. A direct cost
2. An indirect cost
3. A fixed cost
Productivity is:
1. The ratio between the real output and the forecasted output
2. The incorporation of an extra value to the product
3. The ratio between the output and the amount of factor that we have used
In a furniture factory, the consumption of wood is:
1. An average fixed cost
2. A total cost
3. A variable cost
A fixed cost is:
1. The cost that remains independent of the production level
2. The cost that have a firm necessarily as the purchase of raw material
3. A cost that remains the same at short term and at long term
Variable costs are:
1. Those that depend on the output
2. Those that change according to the time
3. Those that are independent of the output
Productivity is the ratio between:
1. The forecasted production and the real production
2. The obtained production and the factors that we have used
3. The profit and the capital
Variable costs are:
1. Proportional to the output
2. The costs of workers without a contract of indefinite duration
3. Independent to the output
YEAR 2003.- Variable costs are:
1. Those that change according to the time
2. Those that change according to the output
3. Those that don't change according to the time
The break-even point is:
1. The amount that the firm must produce so that the revenues will be the same as the costs
2. The amount that the firm must produce so that the revenues will be higher than the costs
3. The amount that the firm must produce so that the revenues will be lower than the costs
In a car factory, the consumption of sheet metal to produce cars is:
1. An average fixed cost
2. A total cost
3. A variable cost
In a production process, when the profit is equal to zero, at what production level is the firm?
1. At the maximum production level
2. At the maximum sales volume
3. At the break-even point
How can we class the cost according to the volume of production?
1. Fixed and variable
2. Transport and storage
3. Direct and indirect
The ratio between the volume of production and the quantity of used factor is called:
1. Productivity
2. Return on assets
3. Average production
In a production process, when the profit is equal to zero, at what production level we are?
1. At the maximum volume of production
2. At the minimum cost
3. At the break-even point
The firm's production costs according to the volume of production are:
1. Fixed and variable
2. Real and forecasted
3. Direct and indirect
In a production process, the short term total costs are:
1. Fixed costs and opportunity costs
2. Fixed costs and variable costs
3. Amortization costs and fixed costs
In the maturity phase of a product:
1. The firm's profit is increasing
2. The velocity of growth of the sales maintains
3. The sales have a strong growth
The aim of a market research is:
1. To distribute the goods that the firms produce
2. To give information about the market and its environment
3. To inform to the consumers
The elements of the marketing-mix are:
1. Product, price, distribution, and commercial comunication
2. Product, price, market, and sellers
3. Price, market, firm, and product
What are the elements of a market?
1. The place where the market is
2. The different physical components that are the framework to the realization of the transactions
3. The buyers, the sellers, the product and the price
Personal training is:
1. An investment in human capital
2. An expense in human capital
3. A theory of motivation of workers
Marketing-Mix is:
1. Product, price, promotion, and distribution
2. Product, price, market, and sellers
3. Price, market, firm, and product
When can we say that a market is a bilateral monopoly?
1. When the same that is bought is sold
2. When the number of suppliers is equal to the number of demanders
3. When there is a supplier and a demander
A market with few suppliers and many demanders is called:
1. Oligopsony
2. Oligopoly
3. Perfect competition
The aim of market research is:
1. To market the goods that the firm produce
2. To provide information about the market and its environment
3. None of these is correct
The life cycle of a product is:
1. The group of physical and visible characteristics of the good or service that the firm offers
2. The different phases of the product since its birth until its disapearance
3. The group of services that are added and that complement the product
One of the following statements isn't a neccesary condition to a market can be a perfect competition market:
1. There is a high number of buyers and sellers
2. There are entry barriers in the industry
3. The product must be homogeneous
An oligopoly is a market in which the number of suppliers and demanders is:
1. Few suppliers and few demanders
2. Few suppliers and many demanders
3. One supplier and many demanders
Retailers are:
1. Middlemen who sell directly to the final consumer
2. Middlemen who buy the products in large quantities to sell them to other middlemen
3. Manufactures of large quantities of products
The group of physical and visible characteristics of the good or service that the firm offers is:
1. The tangible product
2. The extended product
3. The generic product
In selective distribution:
1. The firm chooses only one middleman
2. The firm chooses a limited group of middlemen
3. The firm chooses all the possible distributors
The main variables of marketing-mix are:
1. Product, price, brand, and distribution
2. Product, price, brand, and commercial communication
3. Product, price, distribution, and commercial communication
The data collected specifically to a certain research are:
1. Primary data
2. Secondary data
3. Tertiary data
In an oligopsony there are:
1. Many suppliers and few demanders
2. Many demanders and few suppliers
3. Few suppliers and few demanders
If, in a market segmentation, the used variable is the level of education, we are using a:
1. Demographic variable
2. Socioeconomic variable
3. Geografic variable
Marketing-mix involves the adoption of decisions about:
1. The product, the price, and the investment in raw material
2. The product, the price, promotion, and distribution
3. The purchasing of machinery, price, product, and service
Marketing-Mix is composed of:
1. Product, price, communication and distribution
2. Product, price, market and sellers
3. Price, market, firm and product
In the phase of maturiry of the life of a product:
1. The sales increase quickly
2. The sales and the profits decreease a lot
3. The sales stabilize
Marketing-Mix is:
1. A plan of action that the corporation's commercial research determinates
2. A plan of action that makes up decisions about product and communication
3. A plan of action that makes up decisions related to the product, the price, the distribution and the communication
The function that takes the firm's product to the consumers is the:
1. research
2. Commercial
3. production
The selective distribution consists in:
1. The manufacturer offers his products to all the possible distributors
2. The manufacturer has only one distributor
3. The manufacturer chooses a limited number of distributors
A market with only one supplier and many demanders is:
1. A monopoly
2. A monopsony
3. A bilateral monopoly
One of the following isn't a part of the called "four Ps" of the marketing-mix:
1. The product's manufacture
2. The place or outlet
3. Communication
According to the number of competitors, the markets can classify in:
1. Monopolistic, oligopolistic and perfect competition
2. Wholesaler and retailer
3. International, national, regional and local
A market with many demanders and only one supplier is called:
1. Monopoly
2. Monopsony
3. Oligopoly
Which of the following conditions doesn't belong to a perfect competition market?
1. Entry/exit freedom in the market
2. Informative transparency
3. Products' differentiation
YEAR 2004.- The reserves are financial resources:
1. External and equilty
2. Internal and liabilities
3. Internal and equity
The firm's cash conversion cycle is:
1. The average time that the operating cycle lasts
2. The time that the fixed assets last to renew themselves
3. Something that can't be divided on subperiods
In the shares issued at par:
1. The issuing value is the same as the market value
2. The issuing value is the same as the theoretical value
3. The issuing value is the same as the nominal value
A corporation has 6,000 shares at a nominal fee of 18€ each, that are quoted at 130%. What is the market value of each one?
1. 13.00 €
2. 18.00 €
3. 23.40 €
Which is the correct statement?
1. The stock exchange is the place where the firm's securities are stored
2. The share is the security by means that the firm can sue a costumer for unpaid amounts
3. The price is the resulting value of the buying and selling of a security in the stock exchange
The bonds are:
1. Equity securities
2. Constant income securities
3. Fixed income securities
The decisions in a Public Limited Company are taken by means of voting in the following way:
1. Each shareholder has a vote
2. Each shareholder has a number of votes according to the number of shares
3. Each shareholder has a vote for each bond
The payback of an investment:
1. Is the time to recover the sum of the original investment
2. Is the time after which the flows begin to be positive
3. Is the time that lasts to amortize the fixed assets of the firm
What is the correct statement?
1. All the firms are profitable if they have a positive working capital
2. The working capital can be calculated as the subtraction between the non-current assets and the long term capitals
3. The working capital can be calculated as the subtraction between the current assets and the long term capitals
The amortizations are:
1. An external financing resource
2. The money that we use to pay debts
3. The way to indicate in the balance sheet the depreciation of some assets
The cash conversion cycle is:
1. The average time that the operating cycle lasts
2. The time that we last to renow the non-current assets
3. The time between a loan is approved until it is paid
The variable costs are:
1. Those that depend on the modifications in the supplier of the factors
2. Those that depend on variations in the factors' price
3. Those that are proportional to the output
A cost can be defined as:
1. Any outflow of the firm's money
2. The acquisition of productive factors valued in monetary unities
3. The consumption monetary valued of productive factors
The working capital:
1. Is the margin of indebtedness that a firm can reach as a maximum
2. Informs us about the part of the current capital that is financed with long term capitals
3. The other two statements are false
The quality is:
1. The product's characteristics that allow to satisfy the customer's expectations
2. A serie of characteristics that allow the product to be easily different than the others
3. None of the other answers are correct
A firm increases its production from 357 unities to 642 unities, and its total costs change from 10,750€ to 12,630€, what is its marginal cost?
1. 1,881€
2. 6.6€
3. 285€
For a taxi driver the cost of the diesel oil is a:
1. Fixed cost
2. Variable cost
3. Full cost
In the phase of maturity of the cycle of life of a product:
1. The expenses in promotion and ads are very high and the income obtained is lower
2. The sales and the profits decrease a lot
3. There is a stabiity of the sales and of the profits
The information obtained through a survey is:
1. Primary
2. Secondary
3. Tertiary
Which of the following decisions are part of the product's policy?
1. The advertising and the public relations
2. Actions developped to study what services to offer after the sale of the products
3. Actions that influence the middlemen
The distribution channel to perishable products must be:
1. Short
2. Long
3. Direct sale
The firm's share market is:
1. Annual sales/Number of customers
2. Firm's sales value/Sector's sales value
3. A product's sales/Firm's total sales
The market segmentation involves:
1. To identify groups of competitors with similar productive processes
2. To use only secondary data resources to the market research
3. The creation of homogeneous groups of customers according to their own needs
The wholesalers are:
1. Distributors that sell directly to the consumer
2. Middlemen that don't acquire the property of the products that they distribute
3. Distributors that sell to other retailers
A monopolistic market is formed by:
1. Only one supplier and many demanders
2. Many suppliers and many demanders
3. Few suppliers and only one demander
The firm's main function to society is:
1. To create needs in the consumer
2. To cover costs
3. To detect and satisfy the consumer's needs
The multiple production consists on:
1. To produce several products at the same time
2. To obtain several products in different productive processes
3. To obtain several products in only one productive process
YEAR 2005.- Financially speaking, an increase in capital is:
1. An equity
2. An issuing of bonds made by the firm
3. An increase of the firm's machinery
The issuing value minus the nominal value is equal to the:
1. Refund premium
2. Conversion premium
3. Issuing premium
A negative working capital involves ...
1. A normal situation in the financial structure
2. That the net worth plus the liabilities are higher than the assets
3. That the current liabilities are higher than the current assets
What are bonds?
1. The businessman's debts
2. The businessman's duties to service his customers
3. Each one of the parts of a loan
Which of the following criteria of selection of investments expresses in time unities?
1. The Net Present Value
2. The Payback
3. The Internal Rate of Return
In the moment that we create a Public Limited Company:
1. The shareholder's investment must be in money
2. The capital must be totally paid
3. It's compulsory to register it in the Mercantile Register
In the Public Limited Companies:
1. The shareholders are personally responsible and without limits from the social debts
2. The shareholders have a pre-emption right in the increase in capital
3. The capital is divided into bonds
The Net Present Value is:
1. The price that costs to the businessman to acquire an investment
2. The present value of the net cash flows that the investment creates minus the initial investment
3. The present value that we can sell an investment
For a bank or a savings bank, the creation of a savings account for a customer is:
1. An active operation
2. A passive operation
3. A mediation operation
The pre-emption right is justified by:
1. The loss of value that the shares have after an increase in capital
2. The need to guaranty the right to have a dividend to the new shareholders
3. The corporation's duty to register the new shares
We can find, in the maintenance internal finance:
1. The depreciations
2. The long term banking loans
3. The firm's debts with the suppliers of productive factors
The leasing is an operation of:
1. Financing renting
2. Bill of exchange discount
3. Credit control
The issuing of shares premium is the difference between:
1. The issuing price and the nominal price
2. The refund price and the nominal value
3. The conversion value and the nominal value
What is the technical amortization of a fixed asset?
1. The refund of the money that we have borrowed to buy the fixed asset
2. The estimation of the depreciation of the fixed asset
3. The purchase in monthly payments of the fixed asset
What is a loan?
1. A savings account
2. A liability that consists in the issuing of bonds
3. A loan from the businessman to the firm
The cash conversion cycle is:
1. The time that lasts to renove the firm's non current assets
2. The average useful life of the firm's tangible fixed assets
3. The average time that the operating cycle lasts
In several investments projects, we would invest in the investment that:
1. Its NPV was zero
2. Its NPV was higher
3. Its NPV was lower
The liabilities are:
1. The debts with third parties that the firm must pay
2. The reserves and the non-distributed profits
3. The firm's accounts receivable
The share price is:
1. The issuing price of the shares
2. The price at which the shares are purchased and sold in the stock exchange market
3. The theoretical value of a share according to the firm's balance sheet
What is the NPV?
1. The interest rate that sets the net present value to zero
2. It's the time to recover the investment
3. It's the difference between the initial investment and the adition of the net present cash flows
The money that we owe to the suppliers is a financing resource:
1. Equity and at long term
2. Liabilities and at short term
3. Liabilities and at long term
The firms want the cash conversion cycle to be:
1. The highest possible
2. The lowest possible
3. The firms don't mind that
The dividend is:
1. The part of the capital that each shareholder has
2. The part of the profit that belongs to each share
3. The price of the share in the stock exchange
What appears when we acquire the production factors that we need to produce the goods that we are going to sell:
1. The cost
2. The expense
3. The income
The main characteristic of multiple production is:
1. Two or more productive factors are used
2. Several different products are obtained
3. Several productive plants are used
The variable costs ...
1. Are proportional to the output
2. Are attributed to the variable factors
3. Are proportional to the sales
The fixed cost is:
1. That cost that remains indepent of the production level
2. A cost that depends on the firm's purchases
3. A cost that depends on the time
In a productive process, the short term is characterized because it exists:
1. Only fixed costs
2. Fixed and variable costs
3. Only variable costs
The break even point is:
1. The profitability per unity of product that we have sold
2. The difference between the income and the financial costs
3. The minimum sales amount to begin to obtain profits
In a productive process, when the operating profit is equal to zero, what production level are we in?
1. The maximum output
2. The maximum sales
3. The break even point
The costs that depend on the firm's output are:
1. Fixed costs
2. Variable costs
3. Indirect costs
How can we name the firm's productive costs that vary according to the output?
1. Variable
2. Real
3. Direct
A firm increases its productivity when:
1. It increases its products or services list
2. It sells its products and buy the necessary resources to produce them in more than a geographical area
3. It increases its production according to the used resources
The retailers are:
1. Manufacturers of huge quantities of products
2. Middlemen that buy the products in huge quantities to sell them to other middlemen
3. Middlemen than sell directly to the final consumer
In the Marketing-mix we must decide about:
1. The product, the price and the investment in raw material that we need
2. The product, price, communication and distribution
3. The purchase of raw material, price, product and service
The distribution includes all the decisions and activities related with the process to take its products:
1. To the manufacturer
2. To the supplier
3. To the final consumer
What of the following conditions don't belong to the perfect competition market?
1. Entry/exit freedom in the market
2. There are few suppliers
3. Informative transparency
In the cycle of life of the product, the phase of introduction is characterized by:
1. The stability in the volume of sales
2. The decrease of the volume of sales
3. The slow increase of the volume of sales
The business function that creates time, place and possesion utilities is:
1. The production
2. The distribution
3. The communication
A share market is:
1. The ratio between a firm's amount of sales and the firm's total profit
2. The ratio between a firm's amount of sales and the sector's amount of sales
3. It isn't a ratio, it's a sum
The oligopsony is characterized by:
1. Many suppliers and few demanders
2. Few suppliers and few demanders
3. Few suppliers and only one demander
The group of activities that a firm develops to know what are the consumer's needs and to create the goods and the services that we need to satisfy them, is named:
1. Production
2. Distribution
3. Marketing
Share market is:
1. The ratio between the firm's amount of sales and its profits
2. The difference between the firm's amount of sales and the firm's amount of purchases
3. The ratio between the firm's amount of sales and the sector's amount of sales
A market with many suppliers and only one demander is:
1. An oligopoly
2. A monopsony
3. A perfect competition
The division of the customers in groups with homogeneous needs, is named:
1. Segmentation
2. Marketing
3. Positioning
YEAR 2006.- The issuing of shares is a type of financing:
1. External and at medium and long term
2. External and at short term
3. Internal
The maintenance internal finance is formed by:
1. The depreciations and the reserves
2. The depreciations and the provisions
3. The reserves
To bring the net cash flows to the present moment and to obtain the present value in this moment, is named:
1. Interest rate or discount
2. Payback
3. Net Present Value
If the working capital is negative:
1. The equity is lower than the liabilities
2. The firm is in bankruptcy
3. The non-current assets are higher than the long term financing
The firm's cash conversion cycle is:
1. The average time that the operating cycle lasts
2. The time between the moment that we obtain the long term loan until we've repaid it
3. The time that we last in paying the non-current assets
When a bond, whose nominal value is 60€, is issuing at 55€ it is said that the issuing was:
1. At par
2. Under par
3. Over par
The issuing of accounts receivable over customers to a financial middleman is named:
1. Factoring
2. Bill of exchange discount
3. Banking loan
What is the sale of shares at par?
1. That the sales price is higher than the nominal price
2. That the sales price is lower than the nominal price
3. That the sales price is equal to the nominal price
Liabilities are:
1. The loans
2. The accounts receivable over customers
3. The legal reserve
The Public Limited Companies' shareholders:
1. Are responsible personally and unlimitedly with all their personal assets for the company's debts
2. Don't have any pre-emption rights in the issuing of new shares
3. None of the others are true
When the contract of leasing finishes:
1. The lessee must buy the good
2. The leasing company is free to sell the good to anyone
3. The lessee has the option of buying the good
The factoring is:
1. To lend a production factor to the development of the productive process
2. To stop the amounts receivable over customers to a specialized firm
3. None of the others are correct
What is the working capital?
1. The sum of the depreciation of the fixed assets
2. The sum of the non distributed earnings
3. The excess of the current assets over the short term debts
The working capital is:
1. Current assets - Current liabilities
2. Current assets + Current liabilities
3. Non-curren assets - Current liabilities
The internal rate of return criteria accepts the investment if:
1. The interest rate is higher than the internal rate of return
2. The interest rate is lower than the internal rate of return
3. The outcome is always positive
What is the equity?
1. It's those that is given by the businessman
2. It's those than is given by the customers
3. It's those than is given by the banks
What is the break even point?
1. The production level that allows us to get the maximum technical benefit
2. The production level that we obtain in a full working day
3. The production level in which the total incomes are equal to the total costs
The productivity is the ratio between:
1. The volume of production and the amount of factors used to obtain it
2. The profit and the invested capital
3. The cash and the total liabilities
Fixed cost is:
1. That cost that necessarily has a firm, as the purchase of raw material
2. That cost that maintains independent of the production level
3. That which is proportional to the output
Average variable cost is:
1. The unit variable costs for the number of produced units
2. The variable costs plus the fixed costs
3. The total variable costs divided by the number of produced units
What is the stock breaking?
1. The stock level to make a new order
2. To run out the stocks in the warehouse
3. None of the others is correct
When we obtain several products in only one production process we are talking about:
1. Simple production
2. Lineal production
3. Multiple production
A firm's break even point is:
1. The point at which the income of the last sold unity is maximum
2. The volume of sales that we need to cover the firm's total costs
3. The point at which is the maximum of the average total cost
The marketing-mix policies are:
1. Product, distribution, communication and price policies
2. Product, distribution, price and sale policies
3. Product, planning, communication and price policies
Segmentation is:
1. A process to divide the market in homogeneous sub-groups
2. A channel of direct distribution
3. An exchange model
The phase of growth of the cycle of life of the product is:
1. When we obtain the highest business and profits volume
2. When the sales volume is high but the profits decrease
3. When the sales increase
A product distribution is an activity of the function of:
1. Production
2. Commercialization
3. Management
What of the following belongs to the perfect competition?
1. Entry/exit freedom
2. The price tends to be high
3. The goods aren't homogeneous
The marketing-mix variables are:
1. Invoicing, price, brand and distribution
2. Advertising, price, brand and commercial communication
3. Product, price, distribution and commercial communication
The phases of the cycle of life of the product are:
1. Introduction, growth and decline
2. Introduction, growth, maturity and decline
3. Introduction and decline
According to the number of suppliers and demanders, the markets can classify in:
1. Free and controlled markets
2. Monopolies, oligopolies and perfect competition
3. Consumer markets and industrial markets
To determine a firm's share market we need know:
1. The firm and the sector's profitability
2. The firm and sector's sales
3. The firm's profitability
An oligopoly has:
1. Many buyers and few sellers
2. The firm and sector's sales
3. The firm's profitability
A monopoly has:
1. Few suppliers and many demanders
2. Few suppliers and only one demander
3. Many demanders and only one supplier
YEAR 2007.- External financing at long term is:
1. The company's profits and the amortizations
2. The share capital and the issuing of shares premiums
3. The reserves
Payback:
1. Is a liquidity criteria
2. Is a profitability criteria
3. Is a productivity criteria
The difference between collections and payments is named:
1. Initial investment
2. Cash-flow
3. NPV
The pre-emption right in the increase of capital:
1. Isn't transmissible, only the existing shareholder can use it and can't be sold
2. People can buy or sell it
3. Is forbidden by law
A financial leasing is:
1. A credit account that works as a current account
2. A financing renting with option to buy the asset
3. The handing over of the customers' debts to the bank to give us the money in advance and to manage them
New economy:
1. Is a new way to do economics as a science
2. Is a new economics reality that has important changes
3. Is a way to understand the business economics
When the working capital is negative:
1. The current assets are higher than the current liabilites
2. The firm is bankrupt
3. The non current assets are higher than the long term capitals
Share capital is a financing resource:
1. Equity and internal
2. Liabilities and at long term
3. Equity and external
The money that we owe to the suppliers are:
1. Maintenance finance
2. Liabilities
3. Internal financing
Payback is:
1. The period of time in which the investment incomes are the same as the initial investment
2. The interest rate or discount that makes the present value equal to zero
3. The difference between an investment collection and the the payment of this investment at that moment
Current account credit:
1. Is the automatic financing that the firm gets when it make a debt for the purchases to its suppliers
2. The firm borrows some money from a financial entity to cover its needs and after a time it repay it with its interest
3. Is the financing that the firm gets from a financial entity to predict possible needs but unknowing the exact amount that the firm is going to need
A negative working capital means:
1. That a part of the non-current assets would be financed with current liabilities
2. That a part of the current assets would be financed with non-current liabilites
3. That a part of the non-current assets would be financed with non-current liabilities
What is a way of business financing that consist in selling all the accounts receivable over customers to other firm?
1. Vending
2. Factoring
3. Renting
The bill of exchange discount represents a financial instrument through which:
1. A bank advances the amount of a bill of exchange signed for a firm's customer with a future due date, discounting a commission
2. A bank advances the amount of a invoice and in exchange discounting a commission for the assumed risk
3. A bank advances the amount of a invoice in exchange of a share of the firm's profits
What are the liabilities?
1. They are the financing provided by the businessman
2. They are the financing provided by the customers
3. They are the financing provided by banks and other creditors
What is factoring?
1. It's to transfer accounts receivable over customers to other firm
2. It's one of the factors of production
3. It's the group of invoices that a firm has to receive payment
The fixed costs
1. Depend on the output
2. Don't depend on the output
3. Depend on the volume of sales
The break even point is the minimum amount that a firm must produce and sell:
1. To it begin to obtain profits
2. To it begin its activity
3. To it invoice at the maximum level
The break even point is:
1. The cut-off point of the curve of variable costs and the total revenue
2. The amount of sales from which the profits begin
3. The amount of sales from which the cost are zero
The break even point is:
1. The ratio between the net profit and the equity
2. The output which from the firm begin to obtain profits
3. The yield of the assets
The firms that have a multiple production process are those that show:
1. The transformation than doesn't need continuity
2. The obtaining of several different products
3. The integration of the different firm's elements in multiple industrial plants
Variable costs are:
1. Those that are independent from the output
2. Those that depend on the variations in the price of the factors
3. Those that are proportional to the output
What of the following concepts isn't a firm's output?:
1. Products
2. Dividends
3. Work
How can we classify the costs according to their allocation to the product:
1. Fixed and variable costs
2. Transport and wharehousing costs
3. Direct and indirect costs
A perfect competition market is:
1. One with a supplier and a demander
2. One with many suppliers and many demanders and with a homogeneous product
3. One with many suppliers and only one demander
The ratio between the firm's sales and the sector's sales is named:
1. Profitability
2. Productivity
3. Share market
The promotion that is made in the point of sale is called:
1. Marketing-mix
2. Direct marketing
3. Merchandising
The product, price, distribution and promotion:
1. Are the commercialization system
2. Are variables of which combination is known as marketing-mix
3. Are the production system
In a monopoly there are:
1. Many suppliers and few demanders
2. A supplier and many demanders
3. Many suppliers and many demanders with homogeneous products
The function of distribution consists in:
1. The group of operations made to bring the products closer the buyers
2. The establishment of prices
3. The group of activities made to inform and persuade the consumers
A market isn't a perfect competition market:
1. If there are few sellers and many buyers
2. If the information is perfect
3. If the products are homogeneous
In the phase of maturity of the cycle of life of the product:
1. The sales stabilize
2. There is a height in the promotional campaign
3. More competitive products appear
Marketing-mix is formed by:
1. The product, the price, the public relations and the advertising
2. The product, price, communication and distribution
3. Promotion, price, product and service
The aim of market research is:
1. To market the goods that the firms manufacture
2. To provide information about the market and its environment
3. To improve the quality of the sold product
A market segmentation is:
1. A ratio between a firm's sales and the sector's sales
2. The quantity of units that a group of firms market of the same product, but in a certain area
3. The group of consumers that demand a product with similar characteristics
The elements of marketing-mix are:
1. Product, price, production and distribution
2. Product, price, distribution and sale
3. Product, price, promotion and distribution
In an oligopoly:
1. There are few suppliers and many demanders
2. There are many demanders and only one supplier
3. There are few suppliers and only one demander
Market research consists of:
1. To collect data of the specific environment
2. To analize the consumers
3. To collect, make and analize information about the environment, the competition and the consumers
YEAR 2008.- Reserves:
1. Are paid by the shareholders as the share capital
2. Are part of the liabilities
3. Are the firm's internal financing
If when we want to select an investment, the firm's more important criteria is the liquidity, we'll choose the investment:
1. With the lowest payback
2. With the highest NPV
3. With the highest payback
The cash conversion cycle refers to:
1. The length of the cycle of life of a product
2. The average length of the operating cycle
3. The time that a new product lasts in get consolidation in the market
In the shares we can talk about:
1. Nominal value and theoretical value
2. Market value and productive value
3. Nominal value and net value
What is a financial asset?
1. A employee of the bank or of the insurance sectors
2. A fixed asset, as the buildings and the lands
3. A document issued by entities that need financing and that represents a debt or a property right
A share differs from a bond in:
1. That the bond gives right to vote in the shareholders' meeting and the share doesn't
2. That the share is an equal part of the share capital and the bond is an equal part of a debt
3. None difference exists between shares and bonds
The main characteristics of an investment are:
1. Liquidity, profitability and sociability
2. Liquidity, profitability and risk
3. Liquidity, profitability and balance
In "new economy":
1. A new age appears that is based in the high importance that the products quality acquires
2. The economic reality is characterized by big changes due to the utilisation of the new technologies
3. The information is lossing importance
Information and communication technologies (ICT):
1. As they require a high investment, they are viable only for the big firms
2. They have importance only in the big multinationals
3. They represent a strong competitive advantage for all the firms
Payback is:
1. The time period that we need to recover the initial investment of a project
2. The time period to recover the first monetary unit invested in the project
3. The average time period to be paid from the customers
When the Current Assets are lower than the Current Liabilities:
1. The working capital is negative
2. The working capital is negligible
3. The working capital is positive
What is the IRR?
1. The relative profitability of an investment project
2. The interest rate that makes the NPV to be higher than zero
3. The necessary time to recover an investment
What is the NPV?
1. The present payback
2. The IRR multiply for the initial investment
3. The two other answers are wrong
What is leasing?
1. A financial renting
2. An employment contract
3. An agreement with a banking entity to get a loan
What is the meaning of the technical depreciation of a fixed asset?
1. The return of the money that people have lent to us to buy the fixed asset
2. The estimation of the depreciation of the fixed asset
3. The refund of the loan with its interests
Which of these financial sources belongs to the long term liabilities?
1. Factoring
2. Issuing of bonds
3. The money to pay to the suppliers
In a Public Limited Company, what is the same as the share capital?
1. The number of shares multiplied by the nominal value of each share
2. The number of bonds multiplied by the nominal value of each bond
3. The number of shares multiplied by the market value of each share
The entity that manages the businessman's accounts receivable is called:
1. Leasing
2. Renting
3. Factoring
The firm's internal financing consists in the firm's financing:
1. Only with its shareholder's funds
2. With someone else's funds
3. With fund created by the own firm
We can define the cash conversion cycle as:
1. The average time to recover the money invested in the operating cycle
2. The average time to recover the money invested in the non-current assets
3. The average time to produce the goods
The decisions in the shareholder's meeting of a Public Limited Company, are made in the following way:
1. Each shareholder has a vote
2. Each shareholder has several votes according to the number of shares
3. Each shareholder has a vote for each bond
A firm with a positive working capital indicates:
1. That it can't pay its debts
2. That it's in a risky situation
3. That it mustn't have any financial problem at short term
The issuing of bonds consists in:
1. The sale of the equals parts of the capital of a corporation
2. The sale of the equal parts of a corporation's debt
3. The sale in the stock market of a corporation's shares
We understand as investment in human capital:
1. The investment in physical capital to save work force
2. The investment in physical capital that increases the employment of work force
3. The investment in training for the workers
The costs that depend on the firm's output are called:
1. Fixed costs
2. Variable costs
3. Indirect costs
The concept of business cost of the raw material is associated:
1. With the purchase of raw material
2. With the payment of the raw material
3. With the incorporation of the raw material to the production process
What is the break even point?
1. The production level that allow us to get the minimum cost
2. The production level that is obtained in a working day
3. The production level at which the revenues are equal to the total costs
Fixed costs are:
1. Those costs proportional to the output
2. Those that are equal to the variable costs at the break even point
3. Those than dont' depend on the variation of the output in a certain time period
It's frequent in the retailers to use the 3x2. This action can qualify as:
1. Promotion of sales
2. Advertisement
3. Public Relations
The stages of the cycle of life of a product are:
1. Introduction, maturity and decline
2. Introduction, growth, maturity and decline
3. Introduction, growth and maturity
The market segmentation consists of:
1. To join groups of customer with similar characteristics
2. To divide the market in several equal parts
3. To divide the market of potential customers, in groups with homogeneous characteristics
What of the following isn't a variable of marketing-mix?
1. Price
2. Distribution
3. Planning
A firm's share market is:
1. The part of the global demand of a market that a firm supply
2. The physical space that is assigned to a firm in a mall
3. A firm's total volume of purchases
The marketing-mix is made up for:
1. Product, price, promotion and distribution
2. Product, price, promotion and quality
3. Product, price, promotion and advertisement
The advertisement in the point of sale belongs to the:
1. Telemarketing
2. Direct marketing
3. Merchandising
In the cycle of life of a product, the initial phase is characterized by:
1. Huge investments in advertising and promotion of the products
2. Being the phase that provides the highest profits
3. The stabilization of the firms' sales
In the stage of maturity of a product:
1. The sales have a strong growth
2. The advertising looks for new consumers
3. The firm considers its retirement
In the stage of decline, in the cycle of life of a product:
1. The product isn't known yet
2. The sales decrease
3. The firm gets the highest profitability
The marketing-mix variables are:
1. Price, product, supply of materials and distribution
2. Distribution, price, communication and product
3. Sales force, advertising, price and product
The stage of the cycle of life of a product in which the sales stabilize is called:
1. Growth
2. Decline
3. Maturity
A channel of distribution:
1. Consists on a group of middlemen
2. Consists on the civil services that regulate the trade
3. Consist on the different transport agencies that a manufacturer uses
Indicate which of the following statesment is true:
1. When there are few buyers and many sellers there is a monopoly
2. When there are many buyers and few sellers ther is an oligopsony
3. When there are few sellers and many buyers there is a oligopoly
Cash-flow is:
1. The difference between incomes and expenses
2. The difference between incomes and payments
3. The difference between the collections and the payments
How would the payment of a debt to a supplier affect the amount of the working capital?
1. It doesn't affect it, the working capital maintains equal
2. It increases
3. It decreases
The difference between current assets and current liabilities is:
1. The working capital
2. The current ratio
3. The acid-test ratio
YEAR 2009.- Which of the following marketing variables has the aim of increasing the product long term sales:
1. Sales promotion
2. Advertising
3. Merchandising
Which of the following is a static method of investment selection?
1. The Internal Rate of Return
2. The Net Present Value
3. The payback
A corporation has 2,000 shares at 50€ nominal each one, prized at 110% Which is the market value of each one?
1. 40€
2. 50€
3. 55€
When Current Assets are higher than Current Liabilities, it's said that:
1. The working capital is negative
2. The working capital is negligible
3. The working capital is positive
Payback is the time period:
1. Average to pay to the suppliers
2. Average to collect from the customers
3. That we need to recover the initial investment of a project
What is the NPV of an investment?
1. The relative profitability of a project of investment
2. The interest rate multiplied by the cash flows
3. The two other answers are wrong
Factoring consists in:
1. To lend a production factor to the development of the productive process
2. To sell the acounts receivable over customers to a specialized firm
3. None of the other answers is correct
The productivity of a factor in a time period is:
1. The ratio between the product's production cost and its price of sale
2. The ratio between a product's volume of production and the units of factor used to produce it
3. The number of units of a product manufactured by a firm during this period
Leasing can be defined as:
1. The transfer of a commercial debt
2. The being placed of money to buy a good with the promis of return it with its interests
3. A renting contract of assets with an option to buy it
Productivity is the ratio between:
1. The profit and the capital
2. The output and the quantity of factors used
3. The output and the focused aims
An oligopoly has:
1. Many suppliers and only one demander
2. Many suppliers and many demanders
3. Many demanders and few suppliers
The continuous training of the firm's staff:
1. Must be done allways inside the firm
2. Will allow the firm adapt to the changes and will win competivity
3. Only can be done in big firms
The shareholders' rights are:
1. To receive dividends
2. Right of first refusal to acquire the shares of the outgoing shareholders
3. All the others
What is payback?
1. The relative profitability of a investment project
2. The interest rate that makes the NPV higher than zero
3. The time period that we need to recover an investment
Which of the following stages isn't a part of the cycle of life of a product?
1. Growth
2. Maturity
3. Deceased
Among the shareholders' rights of a Public Limited Company isn't:
1. Right to receive dividends
2. Right to be a company's worker
3. Right to information
The premium of issuing of shares is:
1. The difference between the net value and the conversion value
2. The difference between the refund price and the nominal valuel
3. The difference between the issuing price and the nominal value
Which of the following doesn't belong to a short distribution channel?
1. Wholesaler
2. Retailer
3. Manufacturer
The shareholders' investments to the capital are financial resources:
1. Internal and equity
2. Internal and liabilities
3. External and equity
Wholesalers are:
1. Middlemen that don't sell directly to the final consumer
2. Middlemen that buy the products in high quantities to sell them to the final consumer
3. Manufacturers of huge quantities of products
The customers' division in groups with homogeneous needs is called:
1. Market fragmentation
2. Market segmentation
3. Market research
Savings accounts of banks and savings banks are:
1. Passive operations
2. Active operations
3. Mediation operations and services
When there are many suppliers and few demanders:
1. There is a perfect competition market
2. There is a monopoly
3. There is an oligopsony
Sale to investors, as securities, of the proportional parts of a debt of a corporation, is called:
1. Issuing of bonds
2. Subscription of shares
3. Issuing of shares
Which of the following isn't a part of the Marketing Mix?
1. Product
2. Price
3. Process
In an alien distribution channel:
1. Its cost goes to the liabilitites
2. The middleman exists
3. The physical distribution isn't needed
The costs that are independent of the output are:
1. The fixed costs
2. The variable costs
3. The total costs
The amount of profits that the firm has got and the firm hasn't shared among the shareholders are in:
1. Share capital
2. Reserves
3. Assets
Market research aim is
1. To commercialize the goods that the firms produce
2. To provide information about the market and its environment
3. To divide the market in homogeneous parts
The main firm's function for the society is:
1. To detect and to satisfy the consumer's needs
2. To make discounts to the consumer
3. To cover costs
Which sub-period isn't one of subperiods of the cash conversion cycle of a commercial firm:
1. Supply
2. Profit
3. Production
The transfer of invoices and other accounts receivable that a firm executes is called:
1. Factoring
2. Leasing
3. Confirming
Sales promotion consists in:
1. A group of techniques to collect information from the market through surveys
2. A group of techniques to get by means of a temporary and spacial campaign to stimule the demand and to increase the sales
3. A group of techniques to create certain relations and a good understanding inside and outside the firm
Maintenance internal financing is:
1. Net worth
2. The group of resources coming out the retention of profits
3. The funds that the firm assigns to depreciations each year
The break even point is the guide the firm decides to be the base of the minimum quantity that must produce:
1. So the firm begins to obtain profits
2. To begin the production
3. To obtain the maximum profit
YEAR 2010.- A perfect competition market is characterized by:
1. A small number of firms have a high share market
2. There are few firms in the market
3. There are a lot of firms in the market
The workers training by the firm is:
1. production cost
2. technological capital investment
3. human capital investment
Equity is:
1. share capital
2. loan
3. customers
Variable costs:
1. change according to the time
2. change according to the capital
3. change according to the output
An element of marketing mix is:
1. Assets
2. Price
3. Cost
The firms which sell directly their product to the customer use:
1. Short channel
2. Own channel
3. Internal channel
Introduction, growth, maturity, and decline are:
1. the market segmentation
2. the phases of the life of a product
3. the logistic of the firm
The cash conversion cycle has the following phases:
1. Planification, organization, management, and control
2. Introduction, growth, maturity, and decline
3. Provisioning, production, sale and collection
There is an oligopoly when:
1. There is an supplier and many demanders
2. There are many suppliers and one demander
3. The other answers are wrong
Which subperiod doesn't belong to the cash conversion cycle of a commercial firm?
1. Storage
2. Payment
3. Production
They are a resource of financing:
1. Creditors
2. Debtors
3. Assets
When there are few firms, with a very hard competition selling similar products, we are in:
1. a monopolistic competition
2. an oligopoly
3. a monopoly
The aim of the promotion is:
1. to increase the sales
2. to get the product to be known in the market
3. The other two answers are correct
If a firm buys a vehicle with liquid assets:
1. the working capital decreases
2. the working capital increases
3. the working capital doesn't change
Leasing:
1. is a type of firm which manages the other firms' account receivable
2. is a group of small and medium size firms to have better financing
3. is a firm's option to finance fixed assets
The internal rate of return is:
1. the interest rate which makes maximum its Net Present Value
2. the interest rate which makes its Net Present Value equals to zero
3. the interest rate which makes its Net Present Value equals to the initial outlay
A firm can change its output quickly:
1. by changing the size of its plant
2. by changing the amount of variable factors
3. by selling part of its installations
A patent:
1. gives an exclusive right to exploit it to the person who has a new invent which has an industrial application
2. is a characteristic of a product
3. the other answers are wrong
Shares according to their ownership are:
1. Ordinary and privileged
2. bearing a person’s name and bearer shares
3. by means of a share certificate and by means of account notations
The reserves are a resource of financing:
1. internal
2. equity
3. the other two answers are correct
What is the nominal value of a share?
1. The number of the share
2. The name that appears in the share
3. The value of the share in a share certificate or in account notations
The sale to investors of proportional parts of a debt of a corporation is an:
1. issue of bonds
2. issue of shares
3. issue of stockholding
Markets of imperfect competition are:
1. Monopoly
2. Monopolistic competition
3. the other two answers are correct
The group of commercial activities which have the goal of incresing the sales of a product quickly are:
1. Advertising
2. Merchandising
3. Sales promotion
The issue of shares is a resource of financing:
1. External and equity
2. External and liabilities
3. Internal and equity
At the break- even point:
1. total costs are the same as the total revenue
2. the profit is maximum for the firm
3. the other answers are wrong
Net Present Value:
1. is a static capital budgeting method
2. takes into account the value of the money in the time
3. the other two answers are correct
Leasing is:
1. a type of firm which manages other firms' accounts receivable
2. a group of small and medium size enterprises which have the goal to obtain a better financing
3. is an option which the firms have to finance non current assets

MULTIPLE CHOICE QUESTIONS (IN ORDER) - 3rd PART - BUSINESS ECONOMICS - By Antonio Ginés