Enhancement-Activity-Business-Finance-Q2-W1-2.pptx

Business Finance

1. ENHANCEMENT ACTIVITY Quarter 2, 1ST SEM- S.Y. 202 4 - 202 5 MARISSA C. ALMUETE Subject Teacher BUSINESS FINANCE

2. I. Multiple Choices: Carefully read every question below and choose the letter that corresponds to your answer. STATE 1. What is an investment? A . Spending money on luxuries B . Allocating resources for future profit C . Saving money in a piggy bank D . Paying off debt 2. What is the primary goal of investing? A . Quick money-making B . Preserving wealth C . Generating long-term returns D . Avoiding risk

3. STATE 3. Which of the following is a type of equity investment? A . Bonds B . Stocks C . Savings accounts D . Real estate 4. What is a bond? A . Ownership in a company B . A type of loan made to a government or corporation C . A high-risk stock D . A form of cryptocurrency 5. Which investment type is considered the least risky? A . Stocks B . Mutual funds C . Government bonds D . Real estate

4. STATE 6. What does "diversification" mean in investing? A . Putting all money into one asset B . Spreading investments across multiple assets C . Avoiding high-risk investments D . Investing only in foreign markets 7. What is a mutual fund? A . A company that manages real estate B . A pool of money from investors used to buy a diversified portfolio C . A fixed-income investment D . A retirement account

5. STATE 8. What does ROI stand for? A . Rate of Interest B . Return on Investment C . Real Ownership Index D . Revenue Output Indicator 9. What is the stock market? A . A physical market where stocks are sold B . A platform for buying and selling shares of companies C . A bank service for investors D . A type of insurance policy

6. STATE 10. What does "blue-chip stock" mean? A . High-risk stock B . Stock in a well-established, financially sound company C . A stock with very low value D . Stock related to technology 11. What is a dividend? A . A company's profit paid to shareholders B . A stock's selling price C . Interest paid on a loan D . An investment expense

7. STATE 1 2 . What is compounding in investments? A . Adding new investments yearly B . Earning returns on both initial investment and reinvested earnings C . Taking out loans to invest D . Reducing investment risks 13. Which of the following is a long-term investment? A . Day trading B . Savings accounts C . Real estate D . Options trading

8. STATE 1 4 . What is risk tolerance? A . Willingness to accept financial losses B . Preference for safe investments C . The ability to pay investment taxes D . Capacity to handle investment fees 15. What is an index fund? A . A mutual fund tracking a market index B . A company that loans money C . A tax-free account D . A short-term investment

9. STATE 1 6 . What is the purpose of a financial advisor? A . To sell stocks to investors B . To offer expert guidance on investments C . To calculate taxes D . To insure investments 17. Which of the following affects stock prices? A . Economic trends B . Company performance C . nvestor sentiment D . All of the above

10. STATE 1 8 . What is market capitalization? A . Total number of shares in the market B . Market value of a company's outstanding shares C . Stock price D . Annual profit of a company 19. What is a portfolio? A . A single investment B . A collection of investments C . A savings plan D . An investment loan

11. STATE 20. What does “bull market” mean? A . A declining market B . A stable market C . A rising market D . A volatile market

12. STATE True or False 1. Investing always guarantees a profit. 2. Real estate is a type of fixed-income investment. 3. Diversification can reduce investment risk. 4. A bear market refers to a rising market. 5. Stocks are less risky than government bonds. 6. Inflation reduces the purchasing power of money. 7. A high-risk investment always offers higher returns. 8. ETFs are similar to mutual funds but trade on stock exchanges. 9. Asset allocation involves dividing investments among different asset types. 10. Interest earned on investments is always tax-free.

13. STATE III. Short Essay 1. Define "liquidity" in the context of investments. 2. Name three types of alternative investments.

14. STATE Answer Key Multiple Choice Questions (1-20) B) Allocating resources for future profit C) Generating long-term returns B) Stocks B) A type of loan made to a government or corporation C) Government bonds B) Spreading investments across multiple assets B) A pool of money from investors used to buy a diversified portfolio B) Return on Investment B) A platform for buying and selling shares of companies B) Stock in a well-established, financially sound company A) A company's profit paid to shareholders B) Earning returns on both initial investment and reinvested earnings C) Real estate A) Willingness to accept financial losses A) A mutual fund tracking a market index B) To offer expert guidance on investments D) All of the above B) Market value of a company's outstanding shares B) A collection of investments C) A rising market True or False Questions (21-30) False – Investing involves risk and doesn't guarantee a profit. False – Real estate is considered an alternative investment, not fixed-income. True – Diversification spreads risk. False – A bear market refers to a declining market. False – Stocks are generally riskier than government bonds. True – Inflation erodes purchasing power over time. False – Higher risk can lead to higher returns but doesn't guarantee it. True – ETFs trade like stocks but function like mutual funds. True – Asset allocation balances risk and returns across assets. False – Interest earned is often subject to taxes.

15. Thank you !!!