FIN 534 Midterm Pt.1
false
Question 1
2 out of 2 points
Which of the following statements is CORRECT?
Selected Answer:
If expected inflation increases, interest rates are likely to increase.
Correct Answer:
If expected inflation increases, interest rates are likely to increase.
Question 2
2 out of 2 points
Which of the following statements is CORRECT?
Selected
Answer:
It is usually easier to transfer ownership in a corporation than it is to transfer
ownership in a sole proprietorship.
Correct
Answer:
It is usually easier to transfer ownership in a corporation than it is to transfer
ownership in a sole proprietorship.
Question 3
2 out of 2
points
Which of the following statements is CORRECT?
Selected
Answer:
Sole proprietorships and partnerships generally have a tax advantage over many
corporations, especially large ones.
, FIN 534 Midterm Pt.1
Correct
Answer:
Sole proprietorships and partnerships generally have a tax advantage over many
corporations, especially large ones.
Question 4
0 out of 2
points
Which of the following statements is CORRECT?
Selected
Answer:
Hedge funds have more in common with commercial banks than with any other type
of financial institution.
Correct
Answer:
The justification for the "light" regulation of hedge funds is that only "sophisticated"
investors with high net worths and high incomes are permitted to invest in these
funds, and such investors supposedly can do the necessary "due diligence" on their
own rather than have it done by the SEC or some other regulator.
Question 5
2 out of 2 points
You recently sold 100 shares of your new company, XYZ Corporation, to your brother at a family
reunion. At the reunion your brother gave you a check for the stock and you gave your brother the
stock certificates. Which of the following statements best describes this transaction?
Selected Answer:
This is an example of a direct transfer of capital.
Correct Answer:
This is an example of a direct transfer of capital.
Question 6
2 out of 2 points
false
Question 1
2 out of 2 points
Which of the following statements is CORRECT?
Selected Answer:
If expected inflation increases, interest rates are likely to increase.
Correct Answer:
If expected inflation increases, interest rates are likely to increase.
Question 2
2 out of 2 points
Which of the following statements is CORRECT?
Selected
Answer:
It is usually easier to transfer ownership in a corporation than it is to transfer
ownership in a sole proprietorship.
Correct
Answer:
It is usually easier to transfer ownership in a corporation than it is to transfer
ownership in a sole proprietorship.
Question 3
2 out of 2
points
Which of the following statements is CORRECT?
Selected
Answer:
Sole proprietorships and partnerships generally have a tax advantage over many
corporations, especially large ones.
, FIN 534 Midterm Pt.1
Correct
Answer:
Sole proprietorships and partnerships generally have a tax advantage over many
corporations, especially large ones.
Question 4
0 out of 2
points
Which of the following statements is CORRECT?
Selected
Answer:
Hedge funds have more in common with commercial banks than with any other type
of financial institution.
Correct
Answer:
The justification for the "light" regulation of hedge funds is that only "sophisticated"
investors with high net worths and high incomes are permitted to invest in these
funds, and such investors supposedly can do the necessary "due diligence" on their
own rather than have it done by the SEC or some other regulator.
Question 5
2 out of 2 points
You recently sold 100 shares of your new company, XYZ Corporation, to your brother at a family
reunion. At the reunion your brother gave you a check for the stock and you gave your brother the
stock certificates. Which of the following statements best describes this transaction?
Selected Answer:
This is an example of a direct transfer of capital.
Correct Answer:
This is an example of a direct transfer of capital.
Question 6
2 out of 2 points
