Question 1

Which of the following allows a company to generate long-term funding from within the organization?

Accepted Answer

A)  Long-term loans 
B)  Equity financing 
C)  Debt financing 
D)  Market capitalization 
E)  Stock splits 
A)  Long-term loans 
B)  Equity financing 
C)  Debt financing 
D)  Market capitalization 
E)  Stock splits B

Question 2

Where can an investor learn information about a firm's proposed security offering and the issuing company?

Accepted Answer

A)  The Russell 2000 Index 
B)  The annual report 
C)  The prospectus 
D)  The SEC 
E)  The retained earnings statement 
A)  The Russell 2000 Index 
B)  The annual report 
C)  The prospectus 
D)  The SEC 
E)  The retained earnings statement C

Question 3

Dividend payments are optional and variable.The corporation's CEO decides whether and when a dividend will be paid,as well as the amount that is best for the future of the company's employees.

Accepted Answer

A) True 
 B)False  False

Question 4

According to rating services such as Moody's,what type of rating would a bond have if it was one of the safest investments possible,but produced lower returns?

Accepted Answer

A)  AAA 
B)  BBB 
C)  Caa 
D)  CCC 
E)  D 
A)  AAA 
B)  BBB 
C)  Caa 
D)  CCC 
E)  D

Question 5

Which of the following is considered by many to be the BEST single indicator of the U.S.equities market?

Accepted Answer

A)  NASDAQ Composite 
B)  Russell 2000 
C)  Dow Jones Industrial Average 
D)  Standard & Poor's 500 
E)  New York Stock Exchange 
A)  NASDAQ Composite 
B)  Russell 2000 
C)  Dow Jones Industrial Average 
D)  Standard & Poor's 500 
E)  New York Stock Exchange

Question 6

Which of the following is figured by dividing the yearly dollar amount of dividend income by the investment's current market value?

Accepted Answer

A)  Bond yield 
B)  Current dividend yield 
C)  Debenture 
D)  Trading volume 
E)  Earnings per share 
A)  Bond yield 
B)  Current dividend yield 
C)  Debenture 
D)  Trading volume 
E)  Earnings per share

Question 7

A bond is said to be in default if the borrower fails to make payment when due to lenders.

Accepted Answer

A) True 
 B)False

Question 8

What type of investment offers low returns,but is insured by the U.S.government?

Accepted Answer

A)  Common stock 
B)  Mutual funds 
C)  Exchange-traded funds 
D)  Treasury bills 
E)  Securities 
A)  Common stock 
B)  Mutual funds 
C)  Exchange-traded funds 
D)  Treasury bills 
E)  Securities

Question 9

Which of the following terms refers to a bundling of stocks,bonds,and other securities?

Accepted Answer

A)  Blue-chips 
B)  Mutual funds 
C)  Exchanges 
D)  Commodities 
E)  Dividends 
A)  Blue-chips 
B)  Mutual funds 
C)  Exchanges 
D)  Commodities 
E)  Dividends

Question 10

Which of the following is the enforcement agency that oversees a market's activities and the way securities are issued within that market?

Accepted Answer

A)  SEC 
B)  FINRA 
C)  Galleon group 
D)  Prospectus 
E)  Attorney general 
A)  SEC 
B)  FINRA 
C)  Galleon group 
D)  Prospectus 
E)  Attorney general

Question 11

Explain the principle of compound growth.

Accepted Answer

Compound growth is the compounding of in

Question 12

In case of financial distress,the firm would pay its stockholders before paying its bondholders.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is the name for a portion of the ownership of a corporation?

Accepted Answer

A)  Schedule C 
B)  Stock 
C)  Partnership 
D)  LLC 
E)  Dividend 
A)  Schedule C 
B)  Stock 
C)  Partnership 
D)  LLC 
E)  Dividend

Question 14

How does an issuer of mortgage-backed security pay off debt obligations?

Accepted Answer

A)  Through the sale of mortgages to consumers 
B)  Through an increase in interest rates on mortgages 
C)  Through the assets of the lending institutions 
D)  Through the closing of a mortgage loan 
E)  Through the influx of cash from mortgage payments 
A)  Through the sale of mortgages to consumers 
B)  Through an increase in interest rates on mortgages 
C)  Through the assets of the lending institutions 
D)  Through the closing of a mortgage loan 
E)  Through the influx of cash from mortgage payments

Question 15

How is the market value of a stock determined?

Accepted Answer

A)  Interest rates 
B)  The firm's owners' equity 
C)  Number of shares available 
D)  Profit-seeking potential 
E)  How much buyers are willing to pay 
A)  Interest rates 
B)  The firm's owners' equity 
C)  Number of shares available 
D)  Profit-seeking potential 
E)  How much buyers are willing to pay

Question 16

What is the advantage to a small business when planning for shortfalls in cash flow?

Accepted Answer

A)  Financial resources can be saved in a savings account until needed. 
B)  Banks are more likely to offer loans if they know when the money will be needed. 
C)  Loans can be obtained in advance and minimize their costs. 
D)  Lower interest loans can be sought for the needed time frame. 
E)  Small businesses will appear more professional, resulting in favorable banking relationships. 
A)  Financial resources can be saved in a savings account until needed. 
B)  Banks are more likely to offer loans if they know when the money will be needed. 
C)  Loans can be obtained in advance and minimize their costs. 
D)  Lower interest loans can be sought for the needed time frame. 
E)  Small businesses will appear more professional, resulting in favorable banking relationships.

Question 17

Which of the following is a basis for a firm to be listed on the New York Stock Exchange?

Accepted Answer

A)  Headquarters in New York 
B)  Total value of outstanding stock 
C)  Industry in which the company operates 
D)  Type of stock 
E)  Global operations 
A)  Headquarters in New York 
B)  Total value of outstanding stock 
C)  Industry in which the company operates 
D)  Type of stock 
E)  Global operations

Question 18

Some employees have special knowledge about a future event an organization will experience that will affect the value of stock.Using this knowledge to buy or sell stock before the major event is called

Accepted Answer

A)  prospectus violations. 
B)  market capitalization. 
C)  insider trading. 
D)  retaining earnings. 
E)  underwriting. 
A)  prospectus violations. 
B)  market capitalization. 
C)  insider trading. 
D)  retaining earnings. 
E)  underwriting.

Question 19

An investment bank is a financial institution that specializes in issuing and reselling new securities.

Accepted Answer

A) True 
 B)False

Question 20

To avoid paying a commission on an investment,what type of fund might an investor choose?

Accepted Answer

A)  Blue-chip stock 
B)  Mutual funds 
C)  No-load funds 
D)  Common stock 
E)  Load funds 
A)  Blue-chip stock 
B)  Mutual funds 
C)  No-load funds 
D)  Common stock 
E)  Load funds

Which of the following allows a company to generate long-term funding from within the organization?

Where can an investor learn information about a firm's proposed security offering and the issuing company?

Dividend payments are optional and variable.The corporation's CEO decides whether and when a dividend will be paid,as well as the amount that is best for the future of the company's employees.

According to rating services such as Moody's,what type of rating would a bond have if it was one of the safest investments possible,but produced lower returns?

Which of the following is considered by many to be the BEST single indicator of the U.S.equities market?

Which of the following is figured by dividing the yearly dollar amount of dividend income by the investment's current market value?

A bond is said to be in default if the borrower fails to make payment when due to lenders.

What type of investment offers low returns,but is insured by the U.S.government?

Which of the following terms refers to a bundling of stocks,bonds,and other securities?

Which of the following is the enforcement agency that oversees a market's activities and the way securities are issued within that market?

Explain the principle of compound growth.

In case of financial distress,the firm would pay its stockholders before paying its bondholders.

Which of the following is the name for a portion of the ownership of a corporation?

How does an issuer of mortgage-backed security pay off debt obligations?

How is the market value of a stock determined?

What is the advantage to a small business when planning for shortfalls in cash flow?

Which of the following is a basis for a firm to be listed on the New York Stock Exchange?

Some employees have special knowledge about a future event an organization will experience that will affect the value of stock.Using this knowledge to buy or sell stock before the major event is called

An investment bank is a financial institution that specializes in issuing and reselling new securities.

To avoid paying a commission on an investment,what type of fund might an investor choose?

The US Business Environment

Understanding Business Ethics and Social Responsibility

Entrepreneurship, New Ventures, and Business Ownership

Understanding the Global Context of Business

Managing the Business

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

Developing and Pricing Products

Distributing and Promoting Products

Information Technology Itfor Business

The Role of Accountants and Accounting Information

Understanding Money and the Role of Banking

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Exam 17: Managing Business Finances

Which of the following allows a company to generate long-term funding from within the organization?

Where can an investor learn information about a firm's proposed security offering and the issuing company?

Dividend payments are optional and variable.The corporation's CEO decides whether and when a dividend will be paid,as well as the amount that is best for the future of the company's employees.

According to rating services such as Moody's,what type of rating would a bond have if it was one of the safest investments possible,but produced lower returns?

Which of the following is considered by many to be the BEST single indicator of the U.S.equities market?

Which of the following is figured by dividing the yearly dollar amount of dividend income by the investment's current market value?

A bond is said to be in default if the borrower fails to make payment when due to lenders.

What type of investment offers low returns,but is insured by the U.S.government?

Which of the following terms refers to a bundling of stocks,bonds,and other securities?

Which of the following is the enforcement agency that oversees a market's activities and the way securities are issued within that market?

Explain the principle of compound growth.

In case of financial distress,the firm would pay its stockholders before paying its bondholders.

Which of the following is the name for a portion of the ownership of a corporation?

How does an issuer of mortgage-backed security pay off debt obligations?

How is the market value of a stock determined?

What is the advantage to a small business when planning for shortfalls in cash flow?

Which of the following is a basis for a firm to be listed on the New York Stock Exchange?

Some employees have special knowledge about a future event an organization will experience that will affect the value of stock.Using this knowledge to buy or sell stock before the major event is called

An investment bank is a financial institution that specializes in issuing and reselling new securities.

To avoid paying a commission on an investment,what type of fund might an investor choose?

The US Business Environment

Understanding Business Ethics and Social Responsibility

Entrepreneurship, New Ventures, and Business Ownership

Understanding the Global Context of Business

Managing the Business

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

Developing and Pricing Products

Distributing and Promoting Products

Information Technology Itfor Business

The Role of Accountants and Accounting Information

Understanding Money and the Role of Banking

Filters