(M) Chapter 11: Financial Preparation for Entrepreneurial Ventures (Lec-based)

Question 1

Enumerate the simplest bank accounts

Answer 1

Savings & Current
Time Deposit
Money market
Foreign Currency
Credit Cards

Question 2

Enumerate the Securities Investing

Answer 2

STOCKS
BONDS
MUTUAL FUNDDDSSS!!!!!

Question 3

Enumerate the Financial Statement Analysis

Answer 3

Balance Sheet
Income Statement
Financial Rations

Question 4

Enumerate Insurance & Social Security

Answer 4

Principles
SSS, PHIC, HDMF

Question 5

Bank accounts are used for____ personal cash and earn (minimal) interest

Answer 5

safekeeping

Question 6

Instrument for banks to acquire business capital and/or for further
investment

Answer 6

Bank Accounts

Question 7

Which does not belong

• Savings Account
• Checking or Current Account
• Time Deposit
• Passbook
• ATM
• Balance Sheet
• Hybrid accounts

Answer 7

EDI BALANCE SHEET (financial statement analysis)

Question 8

Type of depositors that are eligible for personal loans, car loans, housing loans, mortgage, etc.

Answer 8

Premium

Question 9

T or F. The OTC Passbook is available for savings, checking and time depo

Answer 9

T

Question 10

T or F. The holding period of checking are:

Days: 30, 60, 90, 180
Years: 1, 5, 10
Pre-termination Fees

Answer 10

F (time depo)

Question 11

T or F. The cheque book feature is only available in checking.

Answer 11

T

Question 12

andAll-in-one savings, current, and time deposit

Answer 12

MMA (money market acc)

Question 13

T or F. The ADB for MMA starts at 200K

Answer 13

f (100k)

Question 14

• Minimum deposit amounts differ per currency
• Interest is tiered and depends on currency
• Cash access thru: OTC-passbook, chequebook, ATM, online.
• Subject to withholding tax.

Answer 14

Foreign Currency Accounts

Question 15

Stocks represent _____ of a (publicly traded) corporation — thus, stockholders become partial owners of the company

Answer 15

shares of ownership (equity)

Question 16

when a corporation goes public, i.e. starts selling stocks

Answer 16

IPO (Initial Public Offering)

Question 17

inviting potential shareholders or stockholders to buy your stocks

Answer 17

private PLACEMent

Question 18

high risk, high return depending on the stock market fluctuations

Answer 18

Common Stock

Question 19

usually fixed returns, thus, low risk and low return

Answer 19

Preferred Stock

Question 20

purchase and selling price of stocks

Answer 20

stock price

Question 21

number of shares of stock

Answer 21

stock volume

Question 22

earnings of the company shared to stock holders

Answer 22

dividends

Question 22

currency value of shares of stock

Answer 22

stock value

Question 23

T or F. In P/E ratio of stocks, high could mean stocks are not popular and Low could mean overvalued, and bought a lot.

Answer 23

F (baliktad)

Question 24

T or F. In the dividend yield, earnings are high and/or company pays low dividends but if the earnings are low or company pays high dividends

Answer 24

F (high pays = high dividends/ low pays = low dividends)

Question 25

Securities sold (issued) by corporations, financial institutions or the government to interested investors without ownership.

Answer 25

Bond

Question 26

T or F. When enterprises sell STOCKS to interested investors they are actually borrowing money from the bondholders.

Answer 26

F (bond)

Question 27

price of bond at initial purchase; amount to be returned upon maturity of the bond.

Answer 27

PAr/face Value

Question 28

interest paid once or several times a year until
maturity for bonds

Answer 28

Coupon

Question 29

Formula for bondholder to sell prior to maturity:

Answer 29

Returns = F + I − P

Question 30

Funds setup by investment companies or are investment companies themselves

Answer 30

Mutual funds

Question 31

Funds that invest on a strategic mix of stocks, bonds, and money market.

Answer 31

Mutual funds

Question 32

Mutual funds are maintained by _____ who are paid based on earnings of the fund — earnings are somehow guaranteed.

Answer 32

investment managers

Question 33

T or F. In. Mutual funds, large amount of investment is (usually) required

Answer 33

T

Question 33

What is NAVPS

Answer 33

net asset value per share

Question 34

withdrawing money from your creditlimit (interest:fixedsurcharges)

Answer 34

cash advance

Question 34

It is a payment network that allow customers to borrow funds within a pre-approved limit

Answer 34

Credit card