MULTIPLE CHOICE QUESTIONS - 3rd PART

Non current Assets is also called:
1. Fixed assets
2. Current assets
3. Financial assets
Long term resources is also called:
1. Long term capitals or long term financing
2. Medium term capitals or medium term financing
3. Short term capitals or short term financing
Long term resources are equal to:
1. Net worth + Non-current liabilities
2. Net worth + Current liabilities
3. Non-current liabilities + Current liabilities
Non-current liabilites are also called:
1. Long term liabilities
2. Medium term liabilities
3. Short term liabilities
Current liabilities are also called:
1. Long term liabilities
2. Medium term liabilities
3. Short term liabilities
Working capital is equal to:
1. Current assets - Current liabilities
2. Current liabilities - Current assets
3. Non current assets - Current liabilities
Working capital is equal to:
1. Long term resources - Non current assets
2. Long term resources - Current assets
3. Current assets - Long term resources
How would affect to the amount of the working capital the payment of a debt to a supplier?
1. It doesn't affect, the working capital maintains equal
2. Working capital increases
3. Working capital decreases
How would affect to the amount of the working capital the purchase of a vehicle with liquid assets?
1. It doesn't affect, the working capital maintains equal
2. Working capital increases
3. Working capital decreases
Internal financing is equal to:
1. Amortizations + Reserves
2. Capital + Liabilities
3. Amortizations + Reserves + Capital
External financing is equal to:
1. Amortizations + Reserves
2. Capital + Liabilities
3. Amortizations + Reserves + Capital
Equity is equal to:
1. Amortizations + Reserves
2. Capital + Liabilities
3. Amortizations + Reserves + Capital
Liabilities are equal to:
1. Capital + Liabilities
2. Liabilities
3. Amortizations + Reserves + Capital
Maintenance internal financing is equal to:
1. Provisions + Amortizations
2. Reserves
3. Provisions + Reserves
Running credits finance:
1. Current assets
2. Non current assets
3. Current liabilities
Amortization is:
1. Depreciation
2. Increasing
3. Decreasing
The depreciations due to the firm's assets wear:
1. Are entered in the books in the firm's assets with minus sign
2. Are entered in the books in the firm's liabilities with minus sign
3. Are entered in the books in the firm's liabilities with plus sign
They are a resource of financing:
1. Debtors
2. Creditors
3. Assets
Bonds are:
1. Constant income securities
2. Fixed income securities
3. Variable income securities
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
The issuing of bonds is a financing resource that we can call:
1. Internal resources
2. Shareholder's equity
3. Long term capitals
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. The average period to produce the goods, since the raw material go into the production process till the finished goods go out the warehouse
3. Only the goods in process conversion period + the finished goods conversion period
Which sub-period isn't one of subperiods of the cash conversion cycle of a commercial firm?:
1. Production
2. Profit
3. Supply
Cash conversion cycle is::
1. The time between a loan is applied until it is paid
2. The time that we last in renove the non-current assets
3. The average time that the operating cycle lasts
Firms want cash consversion cycle to be:
1. Firms don't mind that
2. The highest possible
3. The lower possible
A cost can be defined as:
1. Any outflow of the firm's money
2. The consumption monetary valued of productive factors
3. The acquisition of productive factors valued in monetary unities
When we acquire the production factors that we need to produce the goods that we are going to sell appears:
1. The expense
2. The cost
3. The income
How can we classify the costs according to their allocation to the product:
1. Direct and indirect costs
2. Transport and wharehousing costs
3. Fixed and variable costs
The consumption of a factor that incorporates quickly to the final product, is:
1. A direct cost
2. A fixed cost
3. An indirect cost
Fixed costs are:
1. Those that are equal to the variable costs at the break even point
2. Those than dont' depend on the variation of the output in a certain time period
3. Those costs proportional to the output
Variable costs are:
1. Those that are proportional to the output
2. Those that depend on the modifications in the supplier of the factors
3. Those that depend on variations in the factors' price
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. 285 €
3. 6.6 €
The cycle of the life of the products is:
1. The different phases of the product since its birth until its disapearance
2. The group of services that are added and that complement the product
3. The group of physical and visible characteristics of the good or service that the firm offers
The phases of the cycle of life of the product are:
1. Introduction, growth, and maturity
2. Introduction, maturity, and decline
3. Introduction, growth, maturity, and decline
In the cycle of life of the product, the phase of introduction is characterized by:
1. The slow increase of the volume of sales
2. The stability in the volume of sales
3. The decrease of the volume of sales
In the phase of maturity of the cycle of life of a product:
1. There is a stabiity of the sales and of the profits
2. Expenses in promotion and ads are very high and the income obtained is lower
3. Sales and profits decrease a lot
In the stage of decline, in the cycle of life of a product:
1. Sales decrease
2. Product isn't known yet
3. The firm gets the highest profitability
The main characteristics of an investment are:
1. Liquidity, profitability and security
2. Liquidity and security
3. Liquidity and profitability
What are the things that define an investment?
1. The cash-flows of the five first years and the interest rate
2. The number of fixed assets that we buy and the number of businessman's investments
3. The payment of the investment, the cash-flows and the useful life of the investment
What is the NPV?
1. The time to recover the investment
2. It's the interest rate that makes the Net Present Value equal to zero
3. The profit of an investment that is valued now
Net Present Value:
1. Takes into account the value of the money in the time
2. The other two answers are correct
3. Is a static capital budgeting method
In several investments projects, we would invest in the investment that:
1. Its NPV was higher
2. Its NPV was zero
3. Its NPV was lower
What is the IRR?
1. The time period to recover an investment
2. It's the profit of an investment and valued in the present time
3. It's the interest rate that makes the net present value equal to zero
The internal rate of return criteria accepts the investment if:
1. Always the outcome is positive
2. The interest rate is higher than the internal rate of return
3. The interest rate is lower than the internal rate of return
Payback is:
1. The time period to recover the first monetary unity invested in the project
2. The time period that we need to recover the initial investment of a project
3. The average time period to be paid from the customers
Payback:
1. Is a liquidity criteria
2. Is a profitability criteria
3. Is a productivity criteria
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 highest payback
2. With the lowest payback
3. With the highest NPV
Which of the following is a static method of investment selection?
1. Internal Rate of Return
2. Payback
3. Net Present Value
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
What is the nominal value of a share?
1. The value of the share in a share certificate or in account notations
2. The number of the share
3. The name that appears in the share
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 nominal value
3. The issuing value is higher than their theoretical value
We call book value of a share to:
1. Non-current assets divided by the number of shareholders
2. The assets of a Public Limited Company (PLC) minus the net worth divided by the number of shares
3. Net worth divided by the number of shares
We call book value of a share to:
1. Non-current assets divided by the number of shareholders
2. The assets of a Public Limited Company (PLC) minus the net worth divided by the number of shares
3. The capital of the firm plus the reserves divided by the number of shares
What are the elements of a market?
1. The buyers, the sellers, the product and the price
2. The place where the market is
3. The different physical components that are the framework to the realization of the transactions
A perfect competition market is:
1. That one with many suppliers and many demanders and with a homogeneous product
2. That one with a supplier and a demander
3. That one with many suppliers and only one demander
They are markets of imperfect competition:
1. Monopolistic competition
2. Monopoly
3. The other two answers are correct
An oligopoly has:
1. Many suppliers and many demanders
2. Many suppliers and only one demander
3. Many demanders and few suppliers
Marketing-mix is made up for:
1. Product, price, promotion and advertisement
2. Product, price, promotion and distribution
3. Product, price, promotion and quality
The group of physical and visible characteristics of the good or service that the firm offers is:
1. The generic product
2. The tangible product
3. The extended product
The promotion that is made in the point of sale is called:
1. Merchandising
2. Telemarketing
3. Direct Marketing
Sales promotion consists in:
1. A group of techniques to collect information from the market through surveys
2. A group of techniques to create certain relations and a good understanding inside and outside the firm
3. A group of techniques to get by means of a temporary and spacial campaign to stimule the demand and to increase the sales
The aim of the promotion is:
1. The other two answers are correct
2. to increase the sales
3. to get the product to be known in the market
In the selective distribution:
1. The firm chooses all the possible distributors
2. The firm chooses a limited group of middlemen
3. The firm chooses only one middleman
The firms which sell directly their product to the customer use:
1. Own channel
2. Short channel
3. Internal channel
Market segmentation involves:
1. To use only secondary data resources to the market research
2. To identify groups of competitors with similar productive processes
3. The creation of homogeneous groups of customers according to their own needs
If in a market segmentation the used variable is the level of education we are using a:
1. Socioeconomic variable
2. Geografic variable
3. Demographic variable
Which of the following doesn't belong to a short distribution channel?
1. Retailer
2. Manufacturer
3. Wholesaler
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
Wholesalers are:
1. Distributors that sell to other retailers
2. Middlemen that don't acquire the property of the products that they distribute
3. Distributor that sell directly to the consumer
What is the break even point?
1. The production level at which the revenues are equal to the total costs
2. The production level that is obtained in a working day
3. The production level that allow us to get the minimum cost
The difference between the collections and the payments is called:
1. Initial investment
2. NPV
3. Cash-flow
Current account credit:
1. Is the automatic financing that the firm gets when it make a debt for the purchases to its suppliers
2. 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
3. The firm borrow some money to a financial entity to cover its needs and after a time it repay it with its interest
The decisions in a Public Limited Company are taken by means of voting in the following way:
1. Each shareholder has a vote for each bond
2. Each shareholder has a vote
3. Each shareholder has a number of votes according to the number of shares
The dividend is:
1. The part of the capital that each shareholder has
2. The price of the share in the stock exchange
3. The part of the profit that belongs to each share
Factoring involves the sale of the firm to a financial middleman of:
1. Accounts receivable in exchange for part of the share capital of a company
2. Accounts receivable to obtain inmediate liquidity at a low cost
3. Accounts receivable to obtain inmediate liquidity at a high cost
The financing of assets by means of a renting contract with the option of buy it is called:
1. Leasing
2. Factoring
3. Bill of exchange discount
What is a financial asset?
1. A fixed asset, as the buildings and the lands
2. A worker of the bank or of the insurance sectors
3. A document issued by entities that need financing and that represents a debt or a property right
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
The aim of the market research is:
1. To provide information about the market and its environment
2. To market the goods that the firms manufacture
3. To improve the quality of the sold product
Multiple production consists on:
1. To obtain several products in differents productive processes
2. To obtain several products in only one productive process
3. To produce several product at the same time
In the called "new economy":
1. The information is lossing importance
2. The economic reality is characterized by big changes due to the utilisation of the new technologies
3. It appears a new age that is based in the high importance that the products quality acquires
Personal training is:
1. An investment in human capital
2. An expense in human capital
3. A theory of motivation of workers
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
Data collected specifically to a certain research are:
1. Primary data
2. Secondary data
3. Tertiary data
Productivity is the ratio between:
1. The obtained production and the factors that we have used
2. The profit and the capital
3. The forecasted production and the real production
Saving accounts of banks and saving banks are:
1. Mediation operations and services
2. Active operations
3. Passive operations
Firm's share market is:
1. A product's sales/Firm's total sales
2. Firm's sales value/Sector's sales value
3. Annual sales/Number of customers
What is the stock breaking?
1. The stock level to do a new order
2. To run out the stocks in the warehouse
3. None of the others is correct
The quality is:
1. A serie of characteristics that allow that the product to be easily different of the others
2. The product's characteristics than allow to satisfy the customer's expectations
3. None of the other answers is correct
A firm can change its output at short term:
1. By selling part of its installations
2. By changing the amount of variable factors Variando la cantidad de algunos factores variables
3. By changing the size of its plant
A patent:
1. is a characteristic of a product
2. gives an exclusive right to exploit it to the person who has a new invent which has an industrial application aplicación industrial
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

MULTIPLE CHOICE QUESTIONS - 3rd PART - SUMMARY