Business Finance MPQ
- Created by: mustafaali1838
- Created on: 13-01-20 19:02
Other questions in this quiz
2. The opportunity cost of capital:
- Is the minimum acceptable rate of return on a project
- Is always less than 10%
- Is the maximum acceptable rate of return on a project
- Is the interest rate that the firm pays on a loan from a financial institution
3. Compared to buying stocks and bonds directly, what are the advantages of investing in a mutual fund?
- Mutual funds are efficiently diversified and professionally managed
- Investment returns are never taxed until withdrawn from the fund
- You can buy additional shares in the fund or cash out at any time
- All of these
4. A tax shield is equal to the reduction in:
- Taxable income resulting from a decrease in long-term debt
- Net income caused by depreciation
- Total tax liability resulting from a tax-deductible expense
- Taxable income resulting from depreciation
5. Which of the following statements best distinguishes the difference between real and financial assets?
- Financial assets appreciate in value; real assets depreciate in value
- Real assets have less value than financial assets
- Financial assets represent claims to income that is generated by real assets
- Real assets are tangible; financial assets are not
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