FIN 370 Final Exam (5th Set) 40 Questions with ANSWERS


1.            Which of the following statements best represents what finance is about?

a.             How political, social, and economic forces affect corporations

b.            Maximizing profits

c.             Creation and maintenance of economic wealth

d.            Reducing risk


2.            Consider the timing of the profits of the following certain investment projects:


                          L             S

Year 1          $      0       $ 3000

Year 2          $ 3000      $       0

a.            Project S is preferred to Project L.

b.            Project L is preferred to Project S.

c.             Projects S and L are equally desirable.

d.            A goal of profit maximization would favor Project S only.

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