business finance-2nd quarter week 1.pptx

quiz second quarter

1. BUSINESS FINANCE Quarter 2 Quiz 1

2. Test I. Read carefully the given sentences. Write TRUE if the idea is correct and FALSE if the idea is incorrect.

3. 1. Saving is generally safer than investing because it involves less risk.

4. 2. Investing guarantees that you will earn more money than saving.

5. 3. Both saving and investing are useful for building wealth over time.

6. 4. You should always invest your emergency fund to maximize returns.

7. 5. Saving is better for short-term goals, while investing is better for long-term goals.

8. 6. Inflation affects both savings and investments equally, reducing their future purchasing power at the same rate.

9. 7. A savings account can lose value over time even if the balance stays the same.

10. 8. Investing always requires more financial knowledge and risk tolerance than saving.

11. 9. You can access your money instantly from both savings and investment accounts without penalties or delays.

12. 10. Diversification is a strategy used in both saving and investing to reduce risk.

13. Test II. Identification Read each item carefully and identify the type of risk being described. Business Risk Market Risk Liquidity Risk Financial Risk Country Risk Currency Risk

14. 11. A company’s profits decline due to poor management decisions and weak product demand.

15. 12. An investor struggles to sell shares quickly without losing value due to low market demand.

16. 13. A country suddenly changes its tax laws and imposes restrictions on foreign investments.

17. 14. The value of an investor’s portfolio drops due to a widespread economic downturn.

18. 15. A firm is unable to meet its debt obligations because of excessive borrowing.

19. 16. An investor loses money because the foreign currency they invested in depreciates against their home currency.

20. 17. An investor in a foreign country loses money after the local government freezes foreign bank accounts.

21. 18. A Filipino investor earns less than expected from a U.S. stock due to a weakening dollar against the peso.

22. 19. A business borrows heavily to expand operations but struggles to repay its loans during a slow sales period.

23. 20. A company’s earnings fall because its main supplier went bankrupt, disrupting production.

24. Test III. Enumerations 21-23 Objectives for Investing 24-27 Categories of Country Risk 28-30 Give some Strategies to manage Investment Risk

25. 21. Source of Income 22. Money Growth 23. Safety of Money 24. Political 25. Social 26. Natural Disaster Risk 27. Economic 28-30 Diversification Asset Allocation Research and Analysis Risk Assessment Tool Stay Informed