D761 – BEHAVIORAL
INTERVENTION STRATEGIES AND
APPLIED BEHAVIOR ANALYSIS
OA EXAM REVIEW LATEST GUIDE
.
,1. What are long-term financial forecasts used for?
A. Developing savings, income, and expense strategies
B. Determining short-term operating needs
C. Cash budgeting
D. Making investment and financing decisions CORRECT ANSWER D. Making investment and financ- ing decisions
Correct! Whatever growth a firm anticipates must eventually be financed one way or another. Any investment in capital
that exceeds what the firm retains from profit generates a discretionary financing need.
2. What does a net margin of 7% indicate?
A. For every dollar of revenue, 7 cents remain for the debt holders and equity holders after all other costs are
covered.
B. For every dollar of total assets, 7 cents are generated as sales.
C. For every dollar of fixed assets, 7 cents are generated in sales.
D. For every dollar of revenue, 7 cents remain for the equity holders after all other costs are covered.
CORRECT ANSWER D. For every dollar of revenue, 7 cents remain for the equity holders after all other costs are
covered.
Correct! Net margin tells us the percentage of sales that will become net income, which is the amount remaining for the
equity holders.
3. Which area of finance involves deciding which assets to invest in to create wealth in the future?
A. Financial management
B. Asset pricing
C. Financial institutions
D. Investments CORRECT ANSWER D. Investments
Correct! This area involves deciding which assets to invest in to create wealth in the future.
4. What is the main goal of a firm?
A. To make investment decisions
B. To circulate money in the economy
C. To maximize owner wealth
D. To make decisions on how to finance projects CORRECT ANSWER C. To maximize owner wealth
,Correct! The main goal of a firm is to maximize owner wealth, and the financial manager should make decisions based on
this goal.
5. What are financial managers doing if they evaluate whether it is worth spending money on research and
development for a new product?
A. Managing working capital
B. Making a financing decision
C. Making an investment decision
D. Implementing a financial policy CORRECT ANSWER C. Making an investment decision
Correct! The financial manager assesses the costs and benefits of potential invest- ments in order to wisely use the
investors' money.
6. Which type of financial market is where securities such as stocks and bonds are traded after their initial issuance?
A. The initial public offering
B. The secondary financial market
C. The primary financial market
D. The dealer market CORRECT ANSWER B. The secondary financial market
Correct! Financial securities are first sold in the primary financial market and then traded among investors in the
secondary financial market.
7. What type of financial institution is an insurance company?
A. Depository
B. Investment
C. Contractual
D. Circulatory CORRECT ANSWER C. Contractual
Correct! Insurance companies are contractual savings institutions.
8. Which financial institution invests funds contributed by a company to pro- vide retirement funds for the
company's employees?
A. Mutual fund
B. Insurance
, C. Pension fund
D. Central bank CORRECT ANSWER C. Pension fund
INTERVENTION STRATEGIES AND
APPLIED BEHAVIOR ANALYSIS
OA EXAM REVIEW LATEST GUIDE
.
,1. What are long-term financial forecasts used for?
A. Developing savings, income, and expense strategies
B. Determining short-term operating needs
C. Cash budgeting
D. Making investment and financing decisions CORRECT ANSWER D. Making investment and financ- ing decisions
Correct! Whatever growth a firm anticipates must eventually be financed one way or another. Any investment in capital
that exceeds what the firm retains from profit generates a discretionary financing need.
2. What does a net margin of 7% indicate?
A. For every dollar of revenue, 7 cents remain for the debt holders and equity holders after all other costs are
covered.
B. For every dollar of total assets, 7 cents are generated as sales.
C. For every dollar of fixed assets, 7 cents are generated in sales.
D. For every dollar of revenue, 7 cents remain for the equity holders after all other costs are covered.
CORRECT ANSWER D. For every dollar of revenue, 7 cents remain for the equity holders after all other costs are
covered.
Correct! Net margin tells us the percentage of sales that will become net income, which is the amount remaining for the
equity holders.
3. Which area of finance involves deciding which assets to invest in to create wealth in the future?
A. Financial management
B. Asset pricing
C. Financial institutions
D. Investments CORRECT ANSWER D. Investments
Correct! This area involves deciding which assets to invest in to create wealth in the future.
4. What is the main goal of a firm?
A. To make investment decisions
B. To circulate money in the economy
C. To maximize owner wealth
D. To make decisions on how to finance projects CORRECT ANSWER C. To maximize owner wealth
,Correct! The main goal of a firm is to maximize owner wealth, and the financial manager should make decisions based on
this goal.
5. What are financial managers doing if they evaluate whether it is worth spending money on research and
development for a new product?
A. Managing working capital
B. Making a financing decision
C. Making an investment decision
D. Implementing a financial policy CORRECT ANSWER C. Making an investment decision
Correct! The financial manager assesses the costs and benefits of potential invest- ments in order to wisely use the
investors' money.
6. Which type of financial market is where securities such as stocks and bonds are traded after their initial issuance?
A. The initial public offering
B. The secondary financial market
C. The primary financial market
D. The dealer market CORRECT ANSWER B. The secondary financial market
Correct! Financial securities are first sold in the primary financial market and then traded among investors in the
secondary financial market.
7. What type of financial institution is an insurance company?
A. Depository
B. Investment
C. Contractual
D. Circulatory CORRECT ANSWER C. Contractual
Correct! Insurance companies are contractual savings institutions.
8. Which financial institution invests funds contributed by a company to pro- vide retirement funds for the
company's employees?
A. Mutual fund
B. Insurance
, C. Pension fund
D. Central bank CORRECT ANSWER C. Pension fund
