MODULE 1 Summative Business Finance
MODULE 1 Summative Business Finance
MODULE 1 Summative Business Finance
Department of Education
REGION IV– MIMAROPA
Division of Occidental Mindoro
MAGSAYSAY NATIONAL HIGH SCHOOL
Magsaysay, Occidental Mindoro
Strand:_____________________________ Date:___________
BUSINESS FINANCE
SUMMATIVE ASSESSMENT #1
______1. Financial markets are intermediaries that channel the savings of individuals,
businesses, and government into loans or investments.
______2. When considering each financial decision alternative or possible action in terms of its
impact on the share price of the firm's stock, financial managers should accept only
those actions that expected to maximize shareholder value.
______3. Credit unions are the largest type of financial intermediary handling individual savings.
______4. Stockholders expect to earn higher rates of return on investments of lower risk and
lower rates of return on investments of higher risk.
______5. A mutual fund is a type of financial intermediary that obtains funds through the sale of
shares and uses the proceeds to acquire bonds and stocks issued by various business
and governmental units.
______6. High cash flow is generally associated with a higher share price whereas higher risk
tends to result in a lower share price.
______7. Primary and secondary markets are markets for short-term and long-term securities,
respectively.
______8. The wealth of corporate owners has measured by the share price of the stock.
______9. Commercial banks obtain most of their funds from borrowing in the capital markets.
______10. The money market involves trading of securities with maturities of one year or less
while the capital market involves the buying and selling of securities with maturities for
more than one year.
Republic of the Philippines
Department of Education
REGION IV– MIMAROPA
Division of Occidental Mindoro
MAGSAYSAY NATIONAL HIGH SCHOOL
Magsaysay, Occidental Mindoro
Strand:_____________________________ Date:___________
BUSINESS FINANCE
SUMMATIVE ASSESSMENT #1
______1. Financial markets are intermediaries that channel the savings of individuals,
businesses, and government into loans or investments.
______2. When considering each financial decision alternative or possible action in terms of its
impact on the share price of the firm's stock, financial managers should accept only
those actions that expected to maximize shareholder value.
______3. Credit unions are the largest type of financial intermediary handling individual savings.
______4. Stockholders expect to earn higher rates of return on investments of lower risk and
lower rates of return on investments of higher risk.
______5. A mutual fund is a type of financial intermediary that obtains funds through the sale of
shares and uses the proceeds to acquire bonds and stocks issued by various business
and governmental units.
______6. High cash flow is generally associated with a higher share price whereas higher risk
tends to result in a lower share price.
______7. Primary and secondary markets are markets for short-term and long-term securities,
respectively.
______8. The wealth of corporate owners has measured by the share price of the stock.
______9. Commercial banks obtain most of their funds from borrowing in the capital markets.
______10. The money market involves trading of securities with maturities of one year or less
while the capital market involves the buying and selling of securities with maturities for
more than one year.