Fundamentals of Finance & Economics for Businesses

Test your understanding of key finance and economics concepts covered in the video, including return on investment, time value of money, and net present value.

Business mixed 8 Questions Video Quiz

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Q1 Beginner 1 pts

What is the formula for calculating return on investment (ROI)? Video Reference:
"ROI is a tool that allows you to compare the efficiency of one investment to another investment, thu..."

Timestamp: 3:00

Current value of investment - Cost / Cost Current value of investment / Cost Cost / Current value of investment Current value of investment + Cost

Q2 Intermediate 2 pts

True or false: ROI is the only measure that should be used to evaluate the value of an investment. Video Reference:
"But when you look at the time considerations, you spend three times as much time to make that 40% RO..."

Timestamp: 4:00

True

False

Q3 Intermediate 2 pts

Which of the following best describes the time value of money concept? Video Reference:
"Time value of money. This concept says that money is worth more today than in the future because of ..."

Timestamp: 4:30

Money is worth more today than in the future due to inflation Money is worth more today than in the future due to the potential earning capacity Money is worth more in the future than today due to compound interest Money is worth the same today and in the future

Q4 Advanced 3 pts

Which of the following is NOT a key factor in calculating net present value (NPV)? Video Reference:
"So, how do we calculate the net present value? But before we can calculate it, we need to understand..."

Timestamp: 6:00

Cash inflows Cash outflows Discount rate Inflation rate

Q5 Intermediate 2 pts

Which of the following are benefits of using ROI as a metric? (Select all that apply) Video Reference:
"So, why is ROI important? Because it allows you to compare assets of different classes and express i..."

Timestamp: 3:30

Select all correct answers

Allows comparison of investments across different asset classes Provides a universal measure of profitability Accounts for the time value of money Gives a basic measure of an investment's efficiency

Q6 Intermediate 2 pts

True or false: If the net present value of an investment is greater than zero, it is always a good investment. Video Reference:
"If net present value is greater than zero, that means an investment was a positive investment genera..."

Timestamp: 6:30

True

False

Q7 Advanced 3 pts

Which of the following is NOT a key concept covered in the video? Video Reference:
"Our key concepts for today's class. Returnal investment and time value of money, and net present val..."

Timestamp: 2:30

Return on investment (ROI) Time value of money Net present value (NPV) Compound interest

Q8 Advanced 3 pts

Which of the following best describes the purpose of the discount rate in NPV calculations? Video Reference:
"Discount rate is the interest rate used to determine the present value of future cash flows in a dis..."

Timestamp: 6:30

To account for inflation To determine the present value of future cash flows To compare the value of investments over time To calculate the internal rate of return

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Fundamentals of Finance & Economics for Businesses

What is the formula for calculating return on investment (ROI)? Video Reference: "ROI is a tool that allows you to compare the efficiency of one investment to another investment, thu..." Timestamp: 3:00

True or false: ROI is the only measure that should be used to evaluate the value of an investment. Video Reference: "But when you look at the time considerations, you spend three times as much time to make that 40% RO..." Timestamp: 4:00

Which of the following best describes the time value of money concept? Video Reference: "Time value of money. This concept says that money is worth more today than in the future because of ..." Timestamp: 4:30

Which of the following is NOT a key factor in calculating net present value (NPV)? Video Reference: "So, how do we calculate the net present value? But before we can calculate it, we need to understand..." Timestamp: 6:00

Which of the following are benefits of using ROI as a metric? (Select all that apply) Video Reference: "So, why is ROI important? Because it allows you to compare assets of different classes and express i..." Timestamp: 3:30

True or false: If the net present value of an investment is greater than zero, it is always a good investment. Video Reference: "If net present value is greater than zero, that means an investment was a positive investment genera..." Timestamp: 6:30

Which of the following is NOT a key concept covered in the video? Video Reference: "Our key concepts for today's class. Returnal investment and time value of money, and net present val..." Timestamp: 2:30

Which of the following best describes the purpose of the discount rate in NPV calculations? Video Reference: "Discount rate is the interest rate used to determine the present value of future cash flows in a dis..." Timestamp: 6:30