Question 1

Municipal bonds may be issued by federal, state, or local governments.

Accepted Answer

A) True 
 B)False  True

Question 2

Lito is working with a discount broker. Which service would Lito NOT be likely to receive?

Accepted Answer

A)  stock research 
B)  industry analysis 
C)  face-to-face consultations 
D)  screening for specific types of stocks 
E)  quality suggestions for investments 
A)  stock research 
B)  industry analysis 
C)  face-to-face consultations 
D)  screening for specific types of stocks 
E)  quality suggestions for investments C

Question 3

Because of the uncertainties involved in stock prices, investment professionals believe day-to-day prices to be a generally poor indicator of any stock's real value.

Accepted Answer

A) True 
 B)False  True

Question 4

Which of the following is a summary of price trends in a specific industry and/or the stock market as a whole?

Accepted Answer

A)  investment index 
B)  average index 
C)  market indicator 
D)  market index 
E)  prospectus 
A)  investment index 
B)  average index 
C)  market indicator 
D)  market index 
E)  prospectus

Question 5

Before Allied Corporation sells securities, it is required by law to offer future investors the opportunity to read through a document which contains complete information on both the new issue and the corporations. What is that required document called?

Accepted Answer

A)  book report 
B)  affidavit 
C)  prospectus 
D)  portfolio 
E)  balance sheet 
A)  book report 
B)  affidavit 
C)  prospectus 
D)  portfolio 
E)  balance sheet

Question 6

Which of the following assumptions does Ryerson have to make to support his statements?

Accepted Answer

A)  Some people make money by investing. 
B)  Interest is the only thing that changes the value of a savings account. 
C)  Most people want to save money instead of spending it. 
D)  Companies issue stock only if there is no other way to make money. 
E)  There are few companies whose stock always grows in value. 
A)  Some people make money by investing. 
B)  Interest is the only thing that changes the value of a savings account. 
C)  Most people want to save money instead of spending it. 
D)  Companies issue stock only if there is no other way to make money. 
E)  There are few companies whose stock always grows in value.

Question 7

What are low grade bonds usually called?

Accepted Answer

A)  bankruptcy 
B)  default bonds 
C)  junk bonds 
D)  corporate bonds 
E)  grade B bonds 
A)  bankruptcy 
B)  default bonds 
C)  junk bonds 
D)  corporate bonds 
E)  grade B bonds

Question 8

Aggressive growth funds are designed for investors who can accept the risk of loss inherent in common stock investing with severe price fluctuations, but also the potential for superior returns over time.

Accepted Answer

A) True 
 B)False

Question 9

Kim has investments in stocks, and wants to calculate her total return. What should she do?

Accepted Answer

A)  Divide the yearly dollar amount of dividend income by the investment's current market value. 
B)  Compare the dividend against current yields from other investments. 
C)  Subtract the cost of the stock from what she sold it for. 
D)  Divide the current dividend payment plus capital gain by the original investment. 
E)  Subtract current liabilities from current assets. 
A)  Divide the yearly dollar amount of dividend income by the investment's current market value. 
B)  Compare the dividend against current yields from other investments. 
C)  Subtract the cost of the stock from what she sold it for. 
D)  Divide the current dividend payment plus capital gain by the original investment. 
E)  Subtract current liabilities from current assets.

Question 10

Which of the following allows after-hours trading and protects traders' anonymity?

Accepted Answer

A)  National Association of Securities Dealers Automated Quotation (NASDAQ) 
B)  New York Stock Exchange (NYS
E)  
C)  Electronic Communication Networks (ECNs) 
D)  Standard & Poor's 500 
E)  mutual funds 
A)  National Association of Securities Dealers Automated Quotation (NASDAQ) 
B)  New York Stock Exchange (NYS
E)  
C)  Electronic Communication Networks (ECNs) 
D)  Standard & Poor's 500 
E)  mutual funds

Question 11

Which of the following, if True, might make the option more appealing to a prospect?

Accepted Answer

A)  In recent months, the stock market has become more bullish, making mutual funds a better bet. 
B)  The firm pays the maintenance fees for the investments. 
C)  Employees may choose the amount set aside each month, up to 10 percent of gross income, which is untaxed until the money is removed from the fund. 
D)  Over a ten-year period, the mutual funds included in the firm's option have accrued at a rate equal to the consumer price index. 
E)  The firm allows employees to select from and move funds around to a wide range of mutual fund options, some more conservative than others. 
A)  In recent months, the stock market has become more bullish, making mutual funds a better bet. 
B)  The firm pays the maintenance fees for the investments. 
C)  Employees may choose the amount set aside each month, up to 10 percent of gross income, which is untaxed until the money is removed from the fund. 
D)  Over a ten-year period, the mutual funds included in the firm's option have accrued at a rate equal to the consumer price index. 
E)  The firm allows employees to select from and move funds around to a wide range of mutual fund options, some more conservative than others.

Question 12

What is an angel investor?

Accepted Answer

Outside individuals who provide addition

Question 13

Aardvark needs some quickly obtainable funds to pay some overdue bills. It is considering using factoring-obtaining cash in exchange for outstanding accounts receivable funds. Which of the following, if True, would strengthen the case for using factoring?

Accepted Answer

A)  Factoring can be a costly way to obtain ready cash. 
B)  Aardvark would not have to liquidate any of its core assets to stay in business. 
C)  Customers may be annoyed if they think their account has been turned over to a collection agency. 
D)  Additional accounting practices are necessary to keep track of factored customer accounts. 
E)  Factoring companies usually won't take on receivables more than 90 days old. 
A)  Factoring can be a costly way to obtain ready cash. 
B)  Aardvark would not have to liquidate any of its core assets to stay in business. 
C)  Customers may be annoyed if they think their account has been turned over to a collection agency. 
D)  Additional accounting practices are necessary to keep track of factored customer accounts. 
E)  Factoring companies usually won't take on receivables more than 90 days old.

Question 14

Explain the difference between angel investors and venture capital.

Accepted Answer

Angel investors help many firms grow rap

Question 15

Aardvark is considering issuing corporate bonds in order to raise money. Which of the following, if True, would strengthen the case for doing this?

Accepted Answer

A)  The company's customer base has been declining. 
B)  The company has debts that need to be paid immediately. 
C)  The company's main interest is in long-term solvency. 
D)  The company is interested in cutting costs. 
E)  The company's assets are rapidly depreciating. 
A)  The company's customer base has been declining. 
B)  The company has debts that need to be paid immediately. 
C)  The company's main interest is in long-term solvency. 
D)  The company is interested in cutting costs. 
E)  The company's assets are rapidly depreciating.

Question 16

The investment industry categorizes firms according to size of capitalization.

Accepted Answer

A) True 
 B)False

Question 17

Explain the difference between debt financing and equity financing?

Accepted Answer

Firms can meet their capital needs throu

Question 18

The New York Stock Exchange is one of the smaller exchanges.

Accepted Answer

A) True 
 B)False

Question 19

Although advising and underwriting may be tasks of an investment bank, distribution of new securities is NOT one of their services.

Accepted Answer

A) True 
 B)False

Question 20

What is the formula for measuring a firm's working capital?

Accepted Answer

A)  current assets = working capital /current liabilities 
B)  working capital = current assets - current liabilities 
C)  current liabilities = current assets + working capital 
D)  working capital = current assets x current liabilities 
E)  current liabilities = current assets / working capital 
A)  current assets = working capital /current liabilities 
B)  working capital = current assets - current liabilities 
C)  current liabilities = current assets + working capital 
D)  working capital = current assets x current liabilities 
E)  current liabilities = current assets / working capital

Municipal bonds may be issued by federal, state, or local governments.

Lito is working with a discount broker. Which service would Lito NOT be likely to receive?

Because of the uncertainties involved in stock prices, investment professionals believe day-to-day prices to be a generally poor indicator of any stock's real value.

Which of the following is a summary of price trends in a specific industry and/or the stock market as a whole?

Before Allied Corporation sells securities, it is required by law to offer future investors the opportunity to read through a document which contains complete information on both the new issue and the corporations. What is that required document called?

Which of the following assumptions does Ryerson have to make to support his statements?

What are low grade bonds usually called?

Aggressive growth funds are designed for investors who can accept the risk of loss inherent in common stock investing with severe price fluctuations, but also the potential for superior returns over time.

Kim has investments in stocks, and wants to calculate her total return. What should she do?

Which of the following allows after-hours trading and protects traders' anonymity?

Which of the following, if True, might make the option more appealing to a prospect?

What is an angel investor?

Aardvark needs some quickly obtainable funds to pay some overdue bills. It is considering using factoring-obtaining cash in exchange for outstanding accounts receivable funds. Which of the following, if True, would strengthen the case for using factoring?

Explain the difference between angel investors and venture capital.

Aardvark is considering issuing corporate bonds in order to raise money. Which of the following, if True, would strengthen the case for doing this?

The investment industry categorizes firms according to size of capitalization.

Explain the difference between debt financing and equity financing?

The New York Stock Exchange is one of the smaller exchanges.

Although advising and underwriting may be tasks of an investment bank, distribution of new securities is NOT one of their services.

What is the formula for measuring a firm's working capital?

The Us Business Environment

Business Ethics and Social Responsibility

Entrepreneurship, New Ventures, and Business Ownership

The Global Context of Business

Business Management

Organizing the Business

Operations Management and Quality

Employee Behavior and Motivation

Leadership and Decision Making

Human Resource Management and Labor Relations

Marketing Processes and Consumer Behavior

Pricing, Distributing, and Promoting Products

Information Technology for Business

The Role of Accountants and Accounting Information

Money and Banking

Filters

Exam 16: Managing Finances

Municipal bonds may be issued by federal, state, or local governments.

Lito is working with a discount broker. Which service would Lito NOT be likely to receive?

Because of the uncertainties involved in stock prices, investment professionals believe day-to-day prices to be a generally poor indicator of any stock's real value.

Which of the following is a summary of price trends in a specific industry and/or the stock market as a whole?

Before Allied Corporation sells securities, it is required by law to offer future investors the opportunity to read through a document which contains complete information on both the new issue and the corporations. What is that required document called?

Which of the following assumptions does Ryerson have to make to support his statements?

What are low grade bonds usually called?

Aggressive growth funds are designed for investors who can accept the risk of loss inherent in common stock investing with severe price fluctuations, but also the potential for superior returns over time.

Kim has investments in stocks, and wants to calculate her total return. What should she do?

Which of the following allows after-hours trading and protects traders' anonymity?

Which of the following, if True, might make the option more appealing to a prospect?

What is an angel investor?

Aardvark needs some quickly obtainable funds to pay some overdue bills. It is considering using factoring-obtaining cash in exchange for outstanding accounts receivable funds. Which of the following, if True, would strengthen the case for using factoring?

Explain the difference between angel investors and venture capital.

Aardvark is considering issuing corporate bonds in order to raise money. Which of the following, if True, would strengthen the case for doing this?

The investment industry categorizes firms according to size of capitalization.

Explain the difference between debt financing and equity financing?

The New York Stock Exchange is one of the smaller exchanges.

Although advising and underwriting may be tasks of an investment bank, distribution of new securities is NOT one of their services.

What is the formula for measuring a firm's working capital?

The Us Business Environment

Business Ethics and Social Responsibility

Entrepreneurship, New Ventures, and Business Ownership

The Global Context of Business

Business Management

Organizing the Business

Operations Management and Quality

Employee Behavior and Motivation

Leadership and Decision Making

Human Resource Management and Labor Relations

Marketing Processes and Consumer Behavior

Pricing, Distributing, and Promoting Products

Information Technology for Business

The Role of Accountants and Accounting Information

Money and Banking

Filters