Bussiness
Bussiness
1. Shareholders welcome higher short-term profits even when they damage long-term profits.
True
False
2. Which of these duties are responsibilities of the corporate treasurer?
Financial statements and taxes
Cash management and tax reporting
Cash management and banking relationships
Raising capital and financial statements
3. Financial assets have value because they are claims on the firm's real assets and the cash that those
assets will produce.
True
False
4. A board of directors is elected as a representative of the corporation's:
top management.
stakeholders.
shareholders.
customers.
5. A corporation is considered to be closely held when:
only a few shareholders exist.
the market value of the shares is stable.
it operates in a small geographic area.
management also serves as the board of directors.
6. A firm's reputation:
has no value.
, is an important firm asset.
is irrelevant to shareholders.
can be easily restored once damaged.
7. Which form of organization provides limited liability for the firm but yet allows the professionals
working within that firm to be sued personally?
Limited liability
partnership Limited
liability company Sole
proprietorship Professional
corporation
8. Which one of these enterprises generally acts as an underwriter for an initial public offering?
Commercial bank
Government
Investment bank
Insurance company
9. How is the relationship between a bond's credit rating and its interest rate best defined?
Inverse relationship
Direct relationship
Unrelated
Logarithmic
10. A share of IBM stock is purchased by an individual investor for $75 and later sold to another investor for
$125. Who profits from this sale?
IBM
The first investor
The second investor
Bussiness
1. Shareholders welcome higher short-term profits even when they damage long-term profits.
True
False
2. Which of these duties are responsibilities of the corporate treasurer?
Financial statements and taxes
Cash management and tax reporting
Cash management and banking relationships
Raising capital and financial statements
3. Financial assets have value because they are claims on the firm's real assets and the cash that those
assets will produce.
True
False
4. A board of directors is elected as a representative of the corporation's:
top management.
stakeholders.
shareholders.
customers.
5. A corporation is considered to be closely held when:
only a few shareholders exist.
the market value of the shares is stable.
it operates in a small geographic area.
management also serves as the board of directors.
6. A firm's reputation:
has no value.
, is an important firm asset.
is irrelevant to shareholders.
can be easily restored once damaged.
7. Which form of organization provides limited liability for the firm but yet allows the professionals
working within that firm to be sued personally?
Limited liability
partnership Limited
liability company Sole
proprietorship Professional
corporation
8. Which one of these enterprises generally acts as an underwriter for an initial public offering?
Commercial bank
Government
Investment bank
Insurance company
9. How is the relationship between a bond's credit rating and its interest rate best defined?
Inverse relationship
Direct relationship
Unrelated
Logarithmic
10. A share of IBM stock is purchased by an individual investor for $75 and later sold to another investor for
$125. Who profits from this sale?
IBM
The first investor
The second investor
