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Ashford
Principles of finance
week 1
BUS 401 Week 1 Quiz

BUS 401 Week 1 Quiz

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1.Question : The financial goal of a for-profit business is: 2.Question : Suppose two investments produce the same expected cash flows.  We would assign a higher value to the investment with: 3.Question : Opportunity costs can vary over time and: 4.Question : Time is a factor when determining the value of a possible investment.  As investors, all else being equal, we value investments: 5. Question : An investment, such as a bond, will have a higher expected return (or yield) if it: 6. Question : The value of an asset is based on four characteristics—cash flows, time, risk, and opportunity costs—but in many situations we can estimate an asset’s value by: 7. Question : Over the past 50 years, stocks listed on the NYSE (New York Stock Exchange) have: 8. Question : The accounting method you use in your checkbook is best described as: 9. Question : On the typical balance sheet, the right-hand side shows: 10. Question : To arrive at a more accurate estimate of cash flow we would add depreciation expense to net income. The next step would be to:

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