Instruction: Choose the BEST answer.
1. It is the quantity of production when the income equals total cost.
a. Satiation point
b. Breakeven point
c. Optimal production point
d. Point of production
2. The length of time required to recover the first cost of an investment.
a. Break-even period
b. Payback period
c. Return of investment period
d. Payout period
3. Common term for the certificate of indebtedness
4. It represents ordinary share in ownership of the corporation’s capital without special guarantees of return.
a. Preferred stock
b. Special stock
c. Common stock
d. Stock option
5. A type of bond where the name of the owner is recorded in the books of the corporation. Interests are periodically sent to him without claim action.
a. Coupon bond
b. Registered bond
c. Bond paper
d. Corporate bond
6. A type of business organization where two or more persons associate to engage for a business.
a. Single proprietorship
7. A type of business organization which is a distinct legal entity capable of business transactions like a real person.
b. Single proprietorship
8. In a partnership type of business, what will happen if one of the owners dies?
a. The partnership will continue
b. The partnership will continue as long as the dead member has been replaced.
c. The partnership automatically dies
d. The partnership will become corporation.
9. It is the decrease in value of a property due to the passage of time.
10. It is the length of time during which a property may be used for profit.
a. Useful life
b. Physical life
c. Fiscal life
d. Economic life
Reference: Engineering Economy by H. Sta. Maria
Answers will be posted a fews days after. Keep on visiting www.tupmechanical.com or subscribe to our email subscription.