Progress check - Finance

The 3 key decisions related to finance and taken on a personal level focus on:

• savings

• spending

• capital

• investment

When we classify a company into partnership, sole proprietorship and corporation, our criterion is:

• ownership type

• governmental participation

• legal form

• market coverage

The activities that the companies carry out in order to fulfil their objectives integrate:

• operating cycle

• purchasing cycle

• cashflow cycle

• manufacturing cycle

The criterion of size establishes _______ types of companies.

• 3

• 4

• 6

• 2

A horizon of 1 to 3 years in Finance is considered:

• mid term

• short term

• long term

• infinite term

A return of merchandise to a supplier originates a:

• discount note

• credit note

• prompt payment note

• debit note

In a manufacturing business, the inventory is classified into ______ categories.

• 4

• 2

• 3

• 5

If we buy big quantities from a supplier, what type of discount could we expect to obtain?

• prompt payment discount

• trade discount

• return-driven discount

• volume discount

How is the following interpreted: 3/12, n/35?

• 3% of discount if we pay within 35 days

• 12% of discount if we pay within 3 days

• 3% of discount if we pay within 12 days

• 12% of discount if we pay within 35 days

This type of company implies limited responsability for its owners in cases of bankruptcy:

• corporation

• partnership

• sole proprietorship

• all of the mentioned types