NR 706 EXAMINATION SET 2026 SOLVED
QUESTIONS GRADED A+
● Accounting. Answer: concerns the measurement, in financial (dollar)
terms, of events that reflect the resources, operations, and financing of
an organization
● Financial managment. Answer: provides the theory, concepts, and
tools necessary to help managers make better financial decisions
● Business characteristics. Answer: -obtains financing from the
marketplace
-uses the funds to buy assets
-operates the assets to provide goods or services
-sells the goods or services to create revenue
● Pure Charity. Answer: refers to an undertaking for a charitable purpose
only. The relief of poverty, advancement of education, advancement of
religion, promotion of health, the obtaining of good government, and the
accomplishment of that which is beneficial to the community in any
other respect are pure charities.
● Primary role of finance. Answer: is to plan for, acquire, and utilize
resources to maximize the efficiency (and hence value) of the enterprise.
, ● The Four C's. Answer: cost minimization
cash sufficiency
capital access
control of financial resources
● 3 categories of business organizations. Answer: proprietorship,
partnership, and corporation (there are also hybrid forms)
● Advantages of Proprietorships and Partnerships. Answer: ease of
formation, subject to few regulations, and no corporate income taxes.
● Disadvantages to proprietorships and partnerships. Answer: limited
life, difficult to transfer ownership, unlimited liability, difficult to raise
capital
● Advantages to corporations. Answer: unlimited life, easy transfer of
ownership, ease of raising capital
● Disadvantages of corporations. Answer: cost of formation and
reporting and double taxation for investor-owned corporations
QUESTIONS GRADED A+
● Accounting. Answer: concerns the measurement, in financial (dollar)
terms, of events that reflect the resources, operations, and financing of
an organization
● Financial managment. Answer: provides the theory, concepts, and
tools necessary to help managers make better financial decisions
● Business characteristics. Answer: -obtains financing from the
marketplace
-uses the funds to buy assets
-operates the assets to provide goods or services
-sells the goods or services to create revenue
● Pure Charity. Answer: refers to an undertaking for a charitable purpose
only. The relief of poverty, advancement of education, advancement of
religion, promotion of health, the obtaining of good government, and the
accomplishment of that which is beneficial to the community in any
other respect are pure charities.
● Primary role of finance. Answer: is to plan for, acquire, and utilize
resources to maximize the efficiency (and hence value) of the enterprise.
, ● The Four C's. Answer: cost minimization
cash sufficiency
capital access
control of financial resources
● 3 categories of business organizations. Answer: proprietorship,
partnership, and corporation (there are also hybrid forms)
● Advantages of Proprietorships and Partnerships. Answer: ease of
formation, subject to few regulations, and no corporate income taxes.
● Disadvantages to proprietorships and partnerships. Answer: limited
life, difficult to transfer ownership, unlimited liability, difficult to raise
capital
● Advantages to corporations. Answer: unlimited life, easy transfer of
ownership, ease of raising capital
● Disadvantages of corporations. Answer: cost of formation and
reporting and double taxation for investor-owned corporations
