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BFN 203

Investment involves deploying funds to generate earnings and is recognized as enhancing future income. The fundamental purpose is to earn returns, though safety can only be guaranteed through government securities and high-net-worth firms. Liquidity refers to converting investments to cash, like marketable securities such as treasury bills. Derivatives derive value from underlying assets while real estate involves buying property for leasing. Venture creation involves opportunity recognition, planning, resource generation and management by entrepreneurs to start new businesses. Diversification across multiple assets reduces unsystematic risk specific to an industry, country or security.

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5K views4 pages

BFN 203

Investment involves deploying funds to generate earnings and is recognized as enhancing future income. The fundamental purpose is to earn returns, though safety can only be guaranteed through government securities and high-net-worth firms. Liquidity refers to converting investments to cash, like marketable securities such as treasury bills. Derivatives derive value from underlying assets while real estate involves buying property for leasing. Venture creation involves opportunity recognition, planning, resource generation and management by entrepreneurs to start new businesses. Diversification across multiple assets reduces unsystematic risk specific to an industry, country or security.

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Copyright
© © All Rights Reserved
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Question: Investment is also recognized as the of financial resources towards

enhancing a persons income or increasing the level of earnings from invesible


products in the future
Answer:Deployment

Question: An investment Involves of funds in acquisition of financial assets


Answer:Utilization

Question: The fundamental purpose of investment is to generate


Answer:Earning

Question: Safety of investment can only be guaranteed if is done in financial


products such as and with high networth
Answer:Government Secuirty Firms

Question: means the ease with which an investment can be converted into cash
Answer:Liquidity

Question: refer to money market financial instruments that are easily convertible
to physical cash
Answer:Marketable securities

Question: are obligations of the government


Answer:Treasury securities

Question: A refers to a financial product which has its value dependent on the
outcome of the original financial product as investment by the managers of the
funds
Answer:Derivative

Question: involves investment in buying or building houses apartments and other


landed property with the purpose of leasing them out
Answer:Real Estate

Question: refers to short term debt obligation that is taken by the government
through the apex bank
Answer:Treasury Bill

Question: Formulating business idea is very time consuming which goes through
Answer:Refinement

Question: is regarded as the key stage in the new venture process


Answer:Opportunity Recognition

Question: involves establishing the management structure of the venture with which
to steer the affairs and ensure success and profitable operations of the business
Answer:organization stage

Question: The constitutes the driving force for the recognition of a venture idea
Answer:entrepreneur

Question: Another important responsibility of the entrepreneur in venture creation


involves the packaging a detailed for the venture
Answer:Business plan

Question: A crucial responsibility of the entrepreneur in venture creation involves


generating the needed resources for the new venture
Answer:Financial material
Question: Another crucial responsibility of the entrepreneur in venture creation
involves theof the new venture
Answer:Management

Question: refers to an action initiated for starting business venture with the
intent of filling the gap between an initiative and a capitalized business
Answer:venture creation

Question: The initial or seed money as opined by is normally required for market
research product development and building management infrastructure
Answer:Swier 2007

Question: The has the onerous task of taking decisions on the future potentials of
the business which enables him to project the future growth and development
Answer:entrepreneur

Question: buys undervalued securities while he sells overvalued ones out of his
investment portfolio in the capital market In
Answer: value investor

Question: is regarded as one of the basic building blocks of a solid portfolio


Answer:Investment diversification

Question: In finance the major benefit from investment is the return on the
invested
Answer:funds

Question: A value investor buys undervalued securities while he sells overvalued


ones out of his investment in the capital market
Answer:portfolio

Question: Investment is regarded as one of the basic building blocks of a solid


portfolio
Answer:diversification

Question: These are risk and unsystematic risk


Answer:systemic

Question: The risk is specific to a company industry market economy or country


Answer:

Question: the aim of diversification is to invest in various so that they will not
all be affected the same way by market events
Answer: assets

Question: Portfolio is achieved by placing a larger percentage of high return


investments in a diversified portfolio
Answer:optimization

Question: Investment involves allocating your fund or money in securities


Answer:investible

Question: The risk is specific to a company industry market economy or country it


can be reduced through diversification
Answer:B: unsystematic

Question: is associated with the clich that you should not put all your eggs in one
basket
Answer:Diversification
Question: Which of the following is not a type of commodty for investment
Answer:None of the above

Question: There are mainly types of risk that are associated with investment in the
capital market
Answer:two

Question: Safety of investment can always be guaranteed


Answer:FALSE

Question: A popular valuation metric iswith application for example to valuing


unlisted companies and mergers and acquisition
Answer:EBITDA

Question: The essence of investment hinges on returns


Answer:expected

Question: refers to the process of converting a new idea or technology into a


business undertaking which can succeed and is invariably capable of attracting
investors
Answer:Venture creation

Question: investment involves buying undervalued securities while selling


overvalued ones out of the investment portfolio in the capital market
Answer:Value

Question: is a technique that reduces risk by allocating investments among various


financial instruments industries and other categories
Answer:Diversification

Question: According Gardon there is a remarked difference between capital gains


investing and the game of speculation
Answer:2014

Question: The is a document which sets broad parameters for taxation and ancillary
matters connected with taxation
Answer:National Tax Policy

Question: Owning a current and savings account have the same requirements
Answer:FALSE

Question: is an investment which is undertaking in order to reduce the risk of


adverse price movements in a financial asset
Answer:A hedge

Question: investing is the art of buying and selling an asset for a profit
Answer:Capital gains

Question: repays some or all of a loan when the borrower is insolvent


Answer:Credit insurance

Question: Is a type of tax


Answer:PAYE

Question: The steps involved in personal financial planning process Include all of
the following except
Answer:Goal division
Question: are options to purchase common stock at a specified price up to a
specified date
Answer:Warrants

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