| Question 1 | 5 / 5 points |
Which of the following is an advantage of a sole proprietorship?
Question options:
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| The owner's unlimited liability | ||
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| The lack of continuity upon death of the owner | ||
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| The ease of start-up | ||
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| The ability to raise capital | ||
| Question 2 | 5 / 5 points | ||
Stocks are bought and sold in __________ markets.
Question options:
|
| equity | ||
|
| debt | ||
|
| derivatives | ||
|
| foreign exchange | ||
| Question 3 | 5 / 5 points | ||
The common objective of borrowing and lending is to:
Question options:
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| make all parties better off. | ||
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| gain a profit at the other's expense. | ||
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| make a firm or individual appear more liquid than is really the case. | ||
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| thwart regulatory authority. | ||
| Question 4 | 5 / 5 points | ||
__________ are the forums where buyers and sellers of financial assets and commodities meet.
Question options:
|
| Housing markets | ||
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| Federal Reserve banks | ||
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| Financial markets | ||
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| Automotive shows | ||
| Question 5 | 5 / 5 points | ||
Financial assets that will mature within a year are bought and sold in the __________ market.
Question options:
|
| debt | ||
|
| capital | ||
|
| stock | ||
|
| money | ||
| Question 6 | 5 / 5 points | ||
The set of financial activities that support the OPERATIONS of a business is best described by which main area of finance?
Question options:
|
| Corporate finance | ||
|
| Investments | ||
|
| Financial institutions and markets | ||
|
| International finance | ||
| Question 7 | 5 / 5 points | ||
At its most basic level, the function of financial intermediaries is to:
Question options:
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| track and report interest rates. | ||
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| move money from lenders to borrowers and back again. | ||
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| report all financial transactions to the federal government. | ||
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| effect a transfer of wealth in society. | ||
| Question 8 | 5 / 5 points | ||
__________ addresses the question of how to handle our day-to-day business needs.
Question options:
|
| Capital budgeting | ||
|
| Capital structure | ||
|
| Working capital management | ||
|
| Accounts receivable management | ||
| Question 9 | 5 / 5 points | ||
__________ is a major disadvantage of the corporate form of business.
Question options:
|
| Double taxation | ||
|
| Unlimited liability | ||
|
| Lack of ability to raise capital | ||
|
| Transfer of ownership | ||
| Question 10 | 5 / 5 points | ||
In agency theory, the owners of the business are referred to as __________, and the managers are referred to as __________.
Question options:
|
| bondholders, principals | ||
|
| stockholders, bondholders | ||
|
| agents, principals | ||
|
| principals, agents | ||
| Question 11 | 5 / 5 points | ||
Options are bought and sold in __________ markets.
Question options:
|
| equity | ||
|
| debt | ||
|
| derivatives | ||
|
| foreign exchange | ||
| Question 12 | 5 / 5 points | ||
Of the following, which is NOT one of the four main areas of finance?
Question options:
|
| International Finance | ||
|
| Corporate Finance | ||
|
| Investments | ||
|
| All are considered main areas of finance. | ||
| Question 13 | 5 / 5 points | ||
The problem of motivating one party to act in the best interest of another party is known as the:
Question options:
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| leadership directive. | ||
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| management priority. | ||
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| principal-agent problem. | ||
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| sigma six structure. | ||
| Question 14 | 5 / 5 points | ||
The means by which a company is financed refers to the firm's ________.
Question options:
|
| capital budgeting | ||
|
| capital structure | ||
|
| accounts receivable management | ||
|
| working capital management | ||
| Question 15 | 5 / 5 points | ||
Currencies are bought and sold in __________ markets.
Question options:
|
| equity | ||
|
| debt | ||
|
| derivatives | ||
|
| foreign exchange | ||
| Question 16 | 5 / 5 points | ||
__________ addresses the question of what business we should be in over the long run.
Question options:
|
| Capital budgeting | ||
|
| Capital structure | ||
|
| Working capital management | ||
|
| Accounts receivable management | ||
| Question 17 | 5 / 5 points | ||
The sale of "new" securities, where the financial asset is being traded for the very first time, is said to take place in the __________ market.
Question options:
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| primary | ||
|
| money | ||
|
| secondary | ||
|
| capital | ||
| Question 18 | 5 / 5 points | ||
__________ is the area of finance concerned with activities like borrowing funds to finance projects such as plant expansions or new product launches.
Question options:
|
| Working capital management | ||
|
| International finance | ||
|
| Investments | ||
|
| Corporate finance | ||
| Question 19 | 5 / 5 points | ||
A __________ is a business that is owned entirely by an individual.
Question options:
|
| sole proprietorship | ||
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| partnership | ||
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| subchapter S corporation | ||
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| corporation | ||
| Question 20 | 5 / 5 points | ||
__________ is the area of finance concerned with the activities of buying and selling financial assets such as stocks and bonds.
Question options:
|
| Investments |
|
| Corporate finance |
|
| International finance |
|
| Financial markets and institutions |
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