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.Management Sciences
Category: Engineering Economy
A firm borrows P2,000 for 6 years at 8%. At the end of 6 years, it renews the loan for the amount due plus P2,000 more for 2 years at 8%. What is the lump sum due ?
A. P 3,260.34
B. P 3,280.34
C. P 3,270.34
D. P 3,250.34
What are the two classifications of goods and services ?
A. Local and imported
B. Raw and finished
C. Consumer and producer
D. Ready-made and made-to-order
What refers to the present worth of the probable future net earnings ?
A. Total fair value
B. Total market value
C. Going concern value
D. Earning value
A form of business organization in which a person conducts his business alone and entirely for his own profit, being solely responsible for all its activities and liabilities ?
A. Sole proprietorship
B. Entrepreneurship
C. Partnership
D. Corporation
What type of bond whose guaranty is in lien on railroad equipment, such as freight and passenger cars, locomotives, etc ?
A. Railroad bond
B. Equipment obligation bond
C. Equipment bond
D. Equipment trust bond
The unrecovered depreciation which results due to poor estimates as to the life of the equipment is called _____________________?
A. Sunk cost
B. Economic life
C. In-place value
D. Annuity
What refers to the cumulative effect of elapsed time on the money value of an event, based on the earning power of equivalent invested funds capital should or will earn ?
A. Present worth factor
B. Interest rate
C. Time value of money
D. Yield
Is an artificial being created by operation of law, having the right of succession and the process, attributes and properties expressly authorized by the law or incident to its existence ?
A. Corporation
B. Property
C. Partnership
D. Organization
What refers to the negotiable claim issued by a bank in lien of a term deposit ?
A. Time deposit
B. Bond
C. Capital gain certificate
D. Certificate of deposit
What is defined as the investment of loan or principal which is based not only on the original amount of the loan or principal but the amount of loaned or principal plus the previous accumulated interest ?
A. Effective rate of interest
B. Nominal rate of interest
C. Compound interest
D. Simple interest
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