FINANCE 6100 SUU EXAM 3 2026 Exam UPDATED
EXAM ACTUAL LATEST VERSIONS 150
QUESTIONS AND CORRECT VERIFIED
ANSWERS WITH RATIONALES (100%
CORRECT) A+ GRADED ASSURED
Acquisition - CORRECT ANSWER: 1 party buy out other, semi voluntary
American - CORRECT ANSWER: Any time until maturity date
Asset Acquisition - CORRECT ANSWER: When one corporation agrees to purchase the assets,
such as property, buildings, and equipment, of a second corporation
Benefits - CORRECT ANSWER: Payments, interest and penalties put on hold
Collective bargaining agreement voided
Unfunded pension liabilities voided
Substantial incomplete projects voided
Forgiven debt is not taxed as income like private settlement
Tax loss carry forwards are not lost during bankruptcy
Call - exercise (strike) price - CORRECT ANSWER: Fixed price X
Call - expiration (maturity) date - CORRECT ANSWER: Certain date T
Call - option premium - CORRECT ANSWER: Price paid by buyer to seller to obtain right
,Carve out - CORRECT ANSWER: 10% of parent ownership transitions to 10% new company
ownership
Chapter 7 Bankruptcy - CORRECT ANSWER: Secured debt holders
Court costs and legal fees
Debtor in possession financing
Unpaid employees up to $11,000 wages
Unpaid employees up to $11,000 benefits
Customer deposits up to $2,600
Fisherman/Farmers
Unpaid tax claims
Unsecured debt claims
Preferred stock
Common stock
conglomerate merger - CORRECT ANSWER: the joining of firms in completely unrelated
industries
Corporate hedging process - CORRECT ANSWER: Identify risks
Difference of hedging and speculating
Cost of hedging with light of cost or not
Right measurement to evaluate hedge performance
Dont base on market view
Understand tools
System of controls
Define call - CORRECT ANSWER: Buy at prearranged price by set date, prices rises
, Define put - CORRECT ANSWER: Sell at prearranged price by set date, price falls
divestiture - CORRECT ANSWER: the transfer of total or partial ownership of some of a firm's
operations to investors or to another company
Equity Acquisition - CORRECT ANSWER: Gain control
European - CORRECT ANSWER: Only on maturity date
Forward - CORRECT ANSWER: Private contract
Not standardized
Specified delivery date
Settled at end of contract
Delivery or cash settlement at maturity
future - CORRECT ANSWER: Traded on exchange
Standardized
Range of delivery dates
Marked to market daily
Contract closed before maturity
Future price - CORRECT ANSWER: Contract call for delivery of commodity at specified
delivery or maturity date
horizontal merger - CORRECT ANSWER: the combination of two or more firms competing in
the same market with the same good or service
In the money - CORRECT ANSWER: Today for positive gain
EXAM ACTUAL LATEST VERSIONS 150
QUESTIONS AND CORRECT VERIFIED
ANSWERS WITH RATIONALES (100%
CORRECT) A+ GRADED ASSURED
Acquisition - CORRECT ANSWER: 1 party buy out other, semi voluntary
American - CORRECT ANSWER: Any time until maturity date
Asset Acquisition - CORRECT ANSWER: When one corporation agrees to purchase the assets,
such as property, buildings, and equipment, of a second corporation
Benefits - CORRECT ANSWER: Payments, interest and penalties put on hold
Collective bargaining agreement voided
Unfunded pension liabilities voided
Substantial incomplete projects voided
Forgiven debt is not taxed as income like private settlement
Tax loss carry forwards are not lost during bankruptcy
Call - exercise (strike) price - CORRECT ANSWER: Fixed price X
Call - expiration (maturity) date - CORRECT ANSWER: Certain date T
Call - option premium - CORRECT ANSWER: Price paid by buyer to seller to obtain right
,Carve out - CORRECT ANSWER: 10% of parent ownership transitions to 10% new company
ownership
Chapter 7 Bankruptcy - CORRECT ANSWER: Secured debt holders
Court costs and legal fees
Debtor in possession financing
Unpaid employees up to $11,000 wages
Unpaid employees up to $11,000 benefits
Customer deposits up to $2,600
Fisherman/Farmers
Unpaid tax claims
Unsecured debt claims
Preferred stock
Common stock
conglomerate merger - CORRECT ANSWER: the joining of firms in completely unrelated
industries
Corporate hedging process - CORRECT ANSWER: Identify risks
Difference of hedging and speculating
Cost of hedging with light of cost or not
Right measurement to evaluate hedge performance
Dont base on market view
Understand tools
System of controls
Define call - CORRECT ANSWER: Buy at prearranged price by set date, prices rises
, Define put - CORRECT ANSWER: Sell at prearranged price by set date, price falls
divestiture - CORRECT ANSWER: the transfer of total or partial ownership of some of a firm's
operations to investors or to another company
Equity Acquisition - CORRECT ANSWER: Gain control
European - CORRECT ANSWER: Only on maturity date
Forward - CORRECT ANSWER: Private contract
Not standardized
Specified delivery date
Settled at end of contract
Delivery or cash settlement at maturity
future - CORRECT ANSWER: Traded on exchange
Standardized
Range of delivery dates
Marked to market daily
Contract closed before maturity
Future price - CORRECT ANSWER: Contract call for delivery of commodity at specified
delivery or maturity date
horizontal merger - CORRECT ANSWER: the combination of two or more firms competing in
the same market with the same good or service
In the money - CORRECT ANSWER: Today for positive gain
