NOUN E-Exam: SMS209 / BFN209 - Introduction to Finance, Past Questions

Use Past Questions to see how examiner asked questions in the past
Adele
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NOUN E-Exam: SMS209 / BFN209 - Introduction to Finance, Past Questions

Postby Adele » Thu Jul 12, 2018 8:37 am

NOUN E-Exam: SMS209 / BFN209 - Introduction to Finance, Past Questions


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__are entitled to fixed
dividend payment as
different from equity
shareholders which are
entitled to variable
dividend payments.
Ordinary
shareholders
eExam
FBQ
allow for dividend
payment to be deferred if a
firm does not make
adequate profit to pay
such dividend.
Cumulative
preference shares
eExam
FBQ
is a class of shareholders
entitled to participate in
the residual profit of a
firm in addition to the
cumulative fixed dividend
rate
Participating
Cumulative
Preference Shares
eExam
FBQ
do not have definite
maturity period (but it
could be sold at the
security market – an
artificial maturi
irredeemable
preference shares
eExam
FBQ are normally redeemed
after a fixed period of
time.
Redeemable
preference shares
eExam
FBQ
convey upon the holders
the right to convert these
shares into equity shares
in accordance with the
terms of issues.
Redeemable
preference shares
eExam
FBQ
The
__is very important to the
firm in the acquisition of
long-term funds.
Capital market eExam
FBQ
__or corporate bonds are
normally issued under a
firm’s seal. This represents
the legal evidence of a
firm’s indebtedness.
Debenture stocks eExam
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Question
Type Question A B C D Answer Remark
FBQ __helps to identify the
inputs required
Budgeting eExam
FBQ __helps to identify the
output desire
Planning eExam
FBQ
__involves graphing the
variables to identify the
pattern for a given number
of years
Model identification eExam
FBQ __relates to the financing
decisions and practices of
the entire economy.
Macro finance eExam
FBQ
__is a managerial activity
which is concerned with
planning, providing and
controlling the financial
resources at the disposal
of an organisation.
financial
management
eExam
FBQ
There are two kinds of
markets, Financial market
and Real assets market eExam
FBQ
is a dynamic and evolving
art of making daily
financial decisions and
control in households,
businesses, non-business
organisations and
government.
financial
management
eExam
FBQ
A legal relationship
between two or more
persons where each person
contributes something in
order to carry on a lawful
business with a view of
profit which is to be
shared in a proportion
agreed upon by them is
called
Partnership eExam
FBQ
The management of
current or short-term
assets and short-term
liabilities of a firm is
called
Working Capital eExam
FBQ
provides the means in
which the enterprise can
control its relationship
with its external
environment and at the
same time, it is controlling
its internal operations
accordingly (control-inthe-
small).
Pricing policy eExam
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Question
Type Question A B C D Answer Remark
FBQ _may be defined as the
provision of money at the
time it is required.
Finance eExam
FBQ
A firm/business can sell
shares to acquire equity funds eExam
FBQ
is called borrowed
fund/finance and is solely
owned/contributed by the
stakeholders within
External Finance eExam
FBQ
The
is determined by its
impact on the
shareholder’s value.
dividend policy eExam
FBQ
The
is the retained portion of
profits
retention ratio eExam
FBQ
A business concern owned
by one person who is
engaged actively in the
running of the business is
called
Sole proprietorship eExam
FBQ
Profit planning is related
to considering four main
factors: fixed
costs,variable costs,
selling price and
sales volume eExam
FBQ
is a tool to avoid excessive
and inadequate levels of
inventories and maintain
sufficient inventory for the
smooth operations of the
enterprise in terms of
production and sales
output.
Inventory
management
eExam
FBQ
The
__enables management to
explain the changes in
cash and cash equivalent
production.
cash statement eExam
FBQ
These three key financial
decisions are: anticipation
of financial needs of the
organisation ;acquisition
of financial resources for
the organisation; and
allocation of
financial resources
within the
organisation.
eExam
FBQ
__Activities consist of
cash flows relating to
liability and owners’
equity.
Financing eExam
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Question
Type Question A B C D Answer Remark
FBQ
The main components of
Working capital
management are Cash
management, Receivables
management and
Inventory
management
eExam
FBQ
_refers to the management
of current or short-term
assets and short-term
liabilities.
Working capital
management
eExam
FBQ
_consists of lending
money and collection of
these loans and acquiring
and selling investments
and productive long-term
assets.
Investing Activities: eExam
FBQ
_risks arise from the fact
that the producer’s skill or
that of the subordinates
may not be up to the
expected level for the
plan,hence it may fall
short of achieving the
intention.
Technical Risks and
Finance
eExam
FBQ
Shareholders can be of
two types
__and Preference
Ordinary eExam
FBQ
Investment decisions
involve capital
expenditures which are
referred to as
capital budgeting
decision
eExam
FBQ
__are risks that some
accident may destroy or
spoil some physical goods
created by the work
financed.
Physical Risks and
Finance
eExam
FBQ
are risks of losses as the
result of unforeseen
intervention by
governments.
Political Risk and
Finance
eExam
FBQ
The proportion of profits
distributed as dividend is
called
dividend-payout
ratio.
eExam
FBQ
Pandey (2005)
summarised profit
maximization limitations
as It is vague, It ignores
the timing of returns and
It ignores risk eExam
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Question
Type Question A B C D Answer Remark
FBQ
Profit planning is the
operating decisions in the
areas of
, costing of the volume of
output and the firm’s
product lines selection.
pricing eExam
FBQ
__consists of all
transactions plus othe
events that are not
investing or financing
activities.
Operating Activities eExam
FBQ
is the decision of
allocating capital to longterm
assets that will bring
in beneficial yield (cash
inflow) in the future
capital budgeting
decision
eExam
FBQ
are not owners of the
company. They provide
money to enterprises as
loan which are debt.
Creditors/Lenders eExam
FBQ
_shareholders receive
dividend at a fixed rate
and they enjoy a priority
over ordinary
shareholders.
Preference eExam
FBQ
Shareholders invest their
money in the shares of a
company in the
expectation of a return on
their invested capital. The
return consists of dividend
and
capital gain. eExam
FBQ
_shareholders receive
dividend at a fixed rate
and they enjoy a priority
over ordinary
shareholders.
Preference eExam
FBQ
Shareholders invest their
money in the shares of a
company in the
expectation of a return on
their invested capital. The
return consists of dividend
and
capital gain. eExam
FBQ
Finance decisions
influence Growth, Size
and Productivity eExam
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Question
Type Question A B C D Answer Remark
FBQ
A
_is a legal relationship
between two or more
persons where each person
contributes something in
order to carry on a lawful
business with a view of
profit which is to be
shared in a proportion
agreed upon by them.
Partnership eExam
FBQ
Finance decisions
influence Growth, Size
and Productivity eExam
FBQ
A
_is a legal relationship
between two or more
persons where each person
contributes something in
order to carry on a lawful
business with a view of
profit which is to be
shared in a proportion
agreed upon by them.
Partnership eExam
FBQ
The Financial Manager's
roles are Financial
management, Profit
planning and
Fund allocation eExam
FBQ
is the management of
current or short-term
assets and short-term
liabilities of a firm
Working Capital eExam
FBQ
The
__is the market that serves
as an intermediary
between fund-raisers and
suppliers of capital
NSE eExam
FBQ
The short-term liabilities
of a firm includes Trade
advances, Creditors and Lendings eExam
FBQ
_shareholders receive
dividend at a fixed rate
and they enjoy a priority
over ordinary
shareholders.
Preference eExam
FBQ
Shareholders invest their
money in the shares of a
company in the
expectation of a return on
their invested capital. The
return consists of dividend
and
capital gain eExam
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Question
Type Question A B C D Answer Remark
FBQ
Internal Finance which is
also known as equity
fund/finance is referred to
as
Equity eExam
FBQ
The dividend rate for
ordinary shareholders is
not fixed and can vary
from year to year
depending on the
board of directors. eExam
FBQ
Cash management is
concerned with the
managing of cashflows
into and out of the
enterprise,cash flows
within the enterprise and
Cash balances held
by the enterprise at a
point of time by
financing deficit or
investing surplus
cash.
eExam
FBQ
Some of the various types
of preference shares are
Participating noncumulative
shares,
Cumulative preference
shares and
Participating
Cumulative shares
eExam
FBQ
__shows the present
statement of a business
and the financial condition
of an accounting entity as
at a particular point in
time.
Balance sheet eExam
FBQ
The Financial Manager's
roles are all Financial
Management, Profit
planning and
Fund allocation eExam
FBQ
is the management of
current or short-term
assets and short-term
liabilities of a firm
Working Capital eExam
FBQ
The
__is the market that serves
as an intermediary
between fund-raisers and
suppliers of capital
NSE eExam
FBQ
Financial market and
are the two kinds of
markets
Real assets market eExam
FBQ
are physical or tangible
assets such as plant,
machinery wheat, office,
gold, and buildings etc.
Real markets eExam
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Question
Type Question A B C D Answer Remark
FBQ
defined finance as "to
lend, to settle debt, pay
ransom, furnish, and
procure, etc. --- the
management of money ---
the science of levying
revenue in a state,
corporation --- the
provision of capital.”
The Shorter Oxford
English Dictionary
eExam
FBQ
defined finance as the
system that includes the
circulation of money, the
granting of credit, the
making of investments and
the provision of banking
facilities.” This definition
gives an indication to the
fact that finance is a
system by itself and thus a
broad field of activities at
the centre of economic
operations or social
activities with economic
implication.
Webster’s third
International
Dictionary
eExam
FBQ
tried to narrow the
definition of finance by
defining it as the study of
the nature and use of the
means of payment.
Christy and Roden
(1973)
eExam
FBQ relates to the financing
decisions and practices of
the entire economy
Macro Finance eExam
FBQ is very important to the
firm in the acquisition of
long-term funds.
Capital Market eExam
FBQ defines finance as the art
and science of managing
money
Gitman (2000) eExam
FBQ
_relates to financing
decisions and practices of
individual households,
businesses and nonbusiness
organisations
Micro Finance eExam
FBQ
A
performs the traditional
function of managing a
firm’s cash position to
guarantee liquidity
Financial Manager eExam
MCQ
___________are entitled
to fixed dividend payment





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Adele
Posts: 435
Joined: Mon Nov 06, 2017 3:24 pm
Contact:

Re: NOUN E-Exam: SMS209 / BFN209 - Introduction to Finance, Past Questions

Postby Adele » Thu Jul 12, 2018 9:02 am

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Q76 ___________are entitled to fixed dividend payment as different from equity shareholders which are entitled to variable dividend payments.

Ordinary shareholders

Q77 ___________ allow for dividend payment to be deferred if a firm does not make adequate profit to pay such dividend.

Cumulative pref erence shares

Q78 ________ is a class of shareholders entitled to participate in the residual profit of a firm in addition to the cumulative fixed dividend rate

Participating Cumulative Prefe rence Shares

Q79 _________do not have definite maturity period (but it could be sold at the security market – an artificial maturi

irredeemable preference shares

Q80 ________ are normally redeemed after a fixed period of time.

Redeemable preference shares

Q81 _________convey upon the holders the right to convert these shares into equity shares in accordance with the terms of issues.

Redeemable preference shares

Q82 The________is very important to the firm in the acquisition of long-term funds.

Capital market

Q83 ___________or corporate bonds are normally issued under a firm’s seal. This represents the legal evidence of a firm’s indebtedness.

Debenture stocks

Q84 ________helps to identify the inputs required

Budgeting

Q85 ________helps to identify the output desire

Planning

Q86 involves graphing the variables to identify the pattern for a given number of years

Model identificatio n

Q87 ___________relates to the financing decisions and practices of the entire economy.

Macro finance

Q88 ___________is a managerial activity which is concerned with planning, providing and controlling the financial resources at the disposal of an organisation.

financial managem ent

Q89 The following are three keys in financial decisions except_____________

acceptance

Q90 _____________ is a dynamic and evolving art of making daily financial decisions and control in households, businesses, non-business organisations and government.

financial managem ent

Q91 The finance manager’s duties include all of the following except_________

Cost Evalu ation

Q92 ______consists of lending money and collection of these loans and acquiring and selling investments and productive long-term assets.

Investing Activi ties

Q93 The _______ is the market that serves as an intermediary between fund- raisers and supplier of capital

Nigeria Stock Exch ange (NSE)

Q94 ________are generally the cash effects of transactions and other events that are added to determine the net income

Cash flows from o perating activities

Q95 A promissory note is also known as _________

Bill finance

Q96 _____is the meeting point for investors(lenders) and firm's borrowers

Capital market

Q97 ______consists of cash flows relating to liability and owners’ equity.

Financing Activities

Q98 Finance decisions influence all of the following except__________

control

Q99 There following are three main components of financial statement used for financial analysis except________

Fund flow sta tement

Q100 __________helps management predict, compare and evaluate the enterprise’s activities and forecast the earning ability of the enterprise.

Financial statement analysis

Q101 The following are steps in forecasting process except_____

Factoring

Q102 _______allows for dividend payment to be deferred if a firm does not make adequate profit to pay such dividends

Cumulative preference shares

Q103 Finance is related to the following disciplines except ______

Geography

Q104 The following are various types of preference shares except______

Ordinary shares

Q105 _________is the operating decisions in the areas of pricing, costing of the volume of output and the firm’s product lines selection.

Profit plann ing

Q106 _______is a selection of objectives and the means of achieving them

Planning

Q107 The class of shares which ranks above equity shares are ______

Preference shares

Q108 The following are three types of leases except_____

Investing lease

Q109 Two major external sources of long-term funds are Financial Institutions and ________

Capital m arket

Q110 One of the following is not a function of the finance manager

Portfolio management

Q111 ______shares convey upon the holder the right to convert shares into equity shares in accordance with the terms of issues

Convertible preference shares

Q112 The following are the essential features of a partnership except________

Partnership involves one person coming into b usiness

Q113 The following are sources of short-term funds except______

Trade finance

Q114 ______consists of lending money and collection of these loans and acquiring and selling investments and productive long-term assets.

Investing Activi ties

Q115 The risk that threatens the complete or partial loss of the postponed fruits of effort can be classified under the following main headings except_______

Financial risk

Q116 The following are Pandey (2005)'s summary of profit maximization limitations except________

It ignores returns

Q117 The following are the main components of working capital management except______

Fixed income

Q118 The Memorandum of Association of a company must contain the following information except_____

address of the company and the reason why it is in existence

Q119 _______allows for dividend payment to be deferred if a firm does not make adequate profit to pay such dividend.

Cumulative preference shares

Q120 The following are the functions of finance manager except_______

Management and Control

Q121 ______is the amount a business can spend in a period and be as “well off” at the end of the period than as at the beginning

Profit

Q122 _____is the meeting point for investors(lenders) and firm's borrowers

Capital market

Q123 ______consists of cash flows relating to liability and owners’ equity.

Financing Activities

Q124 ______is a statement that records the financial activities of a particular business organisation

Financial statement

Q125 _________ are risks of losses as the result of unforeseen intervention by governments. These risks may affect the enterprise operating in or exporting to, a foreign country, where government laws discriminate.

Political Risk an d Finance

Q126 The following are the motives for holding cash except_______

Budgetary motive

Q127 Cash management is concerned with the managing of the following except________
Cash flows into and out of the enterprise
Cash flows within the enterprise
***None of the above
Cash balances held by the enterprise at a point of time by financing deficit or investing surplus cash.

Q128 The following are some of the various types of preference shares except_____

Non convertible preference shares

Q129 ________shows the present statement of a business and the financial condition of an accounting entity as at a particular point in time.

Balance sheet

Q130 One of the following is not one of the main kinds of risk

The risk from buying back a shortage of finance.

Q131 The Financial Manager's roles are all of the following except_____

Working Capital

Q132 _________is the management of current or short-term assets and short-term liabilities of a firm

Working Capital

Q133 The elements of income statement are all of the following except________

operating expenses

Q134 _______ is called borrowed fund and is also referred to as a debt

External Finance

Q135 The following are the fields of finance except ______

Production/Operation

Q136 Finance evolved from economics as its branch in the early part of the _____ century

21st

Q137 _______ is the pillar upon which all economic activities stand

Marketing

Q138 The following are some of the important routine finance functions except_________

Capital allocation for long-term assets

Q139 A __________is a legal relationship between two or more persons where each person contributes something in order to carry on a lawful business with a view of profit which is to be shared in a proportion agreed upon by them.

Partnership

Q140 The market value assessment of the appropriate prices of a business is considered as one of the following except______

Projected income

Q141 ________ is a business concern owned by one person who often is also engaged actively in the running of the business.

Sole proprie torship

Q142 _______risks are those that remain; even though the physical object created suffer no unexpected damage.

Economic Ris ks

Q143 The finance manager’s duties includes the following except______

Accounting

Q144 _______are risks that some accident may destroy or spoil some physical goods created by the work financed.

Physical risks

Q145 The risk that threatens the complete or partial loss of the postponed fruits of effort can be classified into the following except______

Financial risks

Q146 ______is when a company distributes all its earnings to shareholders and acquires new capital from same source by issuing new shares

Rights issue

Q147 The following are steps in forecasting process except_____

Factoring

Q148 _______allows for dividend payment to be deferred if a firm does not make adequate profit to pay such dividends

Cumulative preference shares

Q149 ________ consist of all transactions plus other events that are not investing or financing activities

Operating activities

Q150 The following are factors to consider in profit planning except______

Market costs




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