Economic management

If you were running a business, what would be your main economic aim?

• To generate profits.

• To create value.

• To deliver a quality product or service to customers.

• None of the above.

How can you fund a company?

• Owners' contributions

• Borrowing money from banks

• Profits from their business activities.

• All of the above.

If you were a firm's shareholder, what would you think about increasing debt levels to fund a new investment?

• I think it's ok.

• I would prefer to fund it by shareholders' contributions.

When comparing different projects to invest in, what do you have to assess?

• Expected return on the money you are going to invest

• When you will get your money back

• It is not possible to forecast return or payback period before the project starts.

• Both return and time are relevant to make investment decisions.

Consider these two options:

A- Receiving €1,000 today

B- Receiving €1,000 in 1 year

Which of the above would you prefer?

• There are no differences between A and B

• Option A

• Option B

A firm's balance sheet displays:

• Assets, equity and liabilities

• The stream of incomes and expenses in 1 year

• Changes in assets and liabilities after 1 year

• The firm's owners

When calculating a professional football club's annual profits, which of the following items will NOT be considered as an income?

• Ticketing

• Broadcasting

• Venues built during the current year

• Commercial

Which of the following items will be excluded from the calculation of annual profits?

• Payment of debt interest

• Purchase of 10 new cars

• Payrolls

• All of the above will be considered.

Which of the following is the payment a shareholder can expect from a company?

• Profits

• Dividends

• Interest payment

Do you have any background in finance?

• Yes

• No