PART 1. MULTIPLE CHOICE (2 marks each; 60 marks).
Put your answer on the scantron which is on the last page. Fill in the box fully and solidly.
1. Which of the following would be considered a primary market transaction?
A. A buy order to an investment banker for a new public stock offering.
B. A buy order to a broker for shares of a company on the TSX.
C. A buy order to a broker for shares of a company on the Venture Exchange.
D. A buy order to a dealer for shares of a company OTC.
E. A sell order to a broker for a stock listed on the TSX.
2. An agency problem is said to exist when there is a conflict of interest between _____ and
_____.
A. An agent; his or her representative.
B. A broker; a dealer.
C. A principal; his or her agent.
D. One shareholder; another shareholder.
E. A shareholder; a stakeholder.
3. Which one of the following business types is best suited to raising large amounts of capital?
A. Sole proprietorship.
B. Limited liability company.
C. Corporation.
D. General partnership.
E. Limited partnership.
4. The original sale of securities by governments and corporations to the general public occurs in
the:
A. Primary market.
B. Secondary market.
C. Private placement market.
D. Proprietary market.
E. Liquidation market
, 5. The ultimate responsibility for a corporation rests with:
A. The Chairman of the Board.
B. The Board of Directors.
C. The Chief Operations Officer.
D. The stockholders.
E. The stakeholders.
6.
Nabors, Inc.
2017 and 2018 Statement of financial positions
($ in millions)
2017 2018 2017 2018
Cash $310 $405 Accounts payable $2,720 $2,570
Accounts rec. 2,640 3,055 Notes payable 100 0
Inventory 3,275 3,850 Total $2,820 $2,570
Total $6,225 $7,310 Long-term debt 7,875 8,100
Net fixed assets 10,960 10,670 Common stock 5,000 5,250
Retained earnings 1,490 2,060
Total assets $17,185 $17,980 Total liab. & equity $17,185 $17,980
What is the amount of net new borrowing for 2018 ($ in millions)?
A. -$225
B. -$25
C. $0
D. $25
E. $225
Put your answer on the scantron which is on the last page. Fill in the box fully and solidly.
1. Which of the following would be considered a primary market transaction?
A. A buy order to an investment banker for a new public stock offering.
B. A buy order to a broker for shares of a company on the TSX.
C. A buy order to a broker for shares of a company on the Venture Exchange.
D. A buy order to a dealer for shares of a company OTC.
E. A sell order to a broker for a stock listed on the TSX.
2. An agency problem is said to exist when there is a conflict of interest between _____ and
_____.
A. An agent; his or her representative.
B. A broker; a dealer.
C. A principal; his or her agent.
D. One shareholder; another shareholder.
E. A shareholder; a stakeholder.
3. Which one of the following business types is best suited to raising large amounts of capital?
A. Sole proprietorship.
B. Limited liability company.
C. Corporation.
D. General partnership.
E. Limited partnership.
4. The original sale of securities by governments and corporations to the general public occurs in
the:
A. Primary market.
B. Secondary market.
C. Private placement market.
D. Proprietary market.
E. Liquidation market
, 5. The ultimate responsibility for a corporation rests with:
A. The Chairman of the Board.
B. The Board of Directors.
C. The Chief Operations Officer.
D. The stockholders.
E. The stakeholders.
6.
Nabors, Inc.
2017 and 2018 Statement of financial positions
($ in millions)
2017 2018 2017 2018
Cash $310 $405 Accounts payable $2,720 $2,570
Accounts rec. 2,640 3,055 Notes payable 100 0
Inventory 3,275 3,850 Total $2,820 $2,570
Total $6,225 $7,310 Long-term debt 7,875 8,100
Net fixed assets 10,960 10,670 Common stock 5,000 5,250
Retained earnings 1,490 2,060
Total assets $17,185 $17,980 Total liab. & equity $17,185 $17,980
What is the amount of net new borrowing for 2018 ($ in millions)?
A. -$225
B. -$25
C. $0
D. $25
E. $225
