FIN2603 EXAM PACK 2023

FIN2603
EXAM PACK
2023

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,The part of finance concerned with design and delivery of advice and financial products to
individuals, businesses and the government is called ...





A. managerial finance.



B. financial advice.



C. financial services.



D. financial planning.



Answer Key:C

Question 2 of 20
1.0 Points
What financial securities are likely to be traded on the JSE Limited?





A. Ordinary shares



B. Treasury bills



C. Commercial paper



D. Company bonds

,Answer Key:A

Question 3 of 20
1.0 Points
The primary goal of a publicly-owned firm interested in serving its shareholders should be to
...





A. minimise the debt used by the firm.



B. maximise the EPS.



C. maximise the share price.



D. maximise the expected net income.



Answer Key:B

Question 4 of 20
1.0 Points
Any organisation that is managed in accordance with business principles should be able to
ensure its survival because it will ...





A. maximise its revenue from sales and control its expenses.



B. plan its cash inflows and outflows by means of a cash budget.

, 

C. keep its cost of financing as low as possible.



D. undertake all the above-mentioned financial measures.



Answer Key:D

Question 5 of 20
1.0 Points
The primary short-term financial goal of the firm may be best achieved by ...





A. maximising revenue and minimising expenses.



B. minimising the cost of capital and maximising the internal rate of return (IRR).



C. increasing expenses in order to reduce the firm’s tax liability.



D. accelerating cash inflows and delaying cash outflows.



Answer Key:A

Part 2 of 3 - Section 2 10.0 Points

Question 6 of 20
1.0 Points
A firm’s cash inflow becomes more predictable as the ...