Finance

FINC2011 Tutorial 1

BMA Ch.1 Problems 1, 2, 3, 4, 7, 9, 10, 11, 12

|1.| |Read the following passage: “Companies usually buy (a) assets. These include both tangible assets such as (b) and |
| | |intangible assets such as (c). To pay for these assets, they sell (d) assets such as (e). The decision about which |
| | |assets to buy is usually termed the (f) or (g) decision. The decision about how to raise the money is usually termed |
| | |the (h) decision.” Now fit each of the following terms into the most appropriate space: financing, real, bonds, |
| | |investment, executive airplanes, financial, capital budgeting, brand names. |
| | |Answer |
| | |. a. real |
| | |b. executive airplanes |
| | |c. brand names |
| | |d. financial |
| | |e. bonds |
| | |f. investment |
| | |g. capital budgeting |
| | |h. financing |
|2.| |Which of the following are real assets, and which are financial? |
| | |a.