FNAN 522 - Exam I
Started on Monday, 18 November 2019, 7:12 PM
State Finished
Completed on Monday, 18 November 2019, 8:05 PM
Time taken 53 mins 50 secs
Marks 18.00/30.00
Grade 126.00 out of 210.00 (60%)
Question 1
A company needs to raise cash to cover its
Correct
operating expenses. The company will only
Mark 1.00 out need the funds for a short period of time.
of 1.00 Which financial market is the most
appropriate for the company use to raise
money (that is, likely the lowest cost and
best-matched maturity)?
Select one:
a. Capital market
b. All of these answers
c. Derivative market
d. Money market
The correct answer is: Money market
, What is the primary goal of the Sarbanes-Oxley act
according to the Module 1 video "The Goal of
Financial Management"?
Select one:
To help maintain a primary bull market.
To prevent a secular bear market.
Question 2
To protect corporate executives from frivolous
Correct
shareholder lawsuits.
Mark 1.00 out of 1.00 To protect investors from corporate abuse.
The correct answer is: To protect investors from corporate
abuse.
Question 3
Which of the following is an accurate characteristic
Correct of a sole proprietorship?
Mark 1.00 out of 1.00
Select one:
There is more than one owner.
The owner is personally liable for the business's debt
and obligations.
The owner must file a separate tax return for the
business.
A sole proprietorship typically elects board members
for staggered terms.
The correct answer is: The owner is personally liable for the
business's debt and obligations.
, Which of the following is a source of agency costs
in an organization?
Select one:
All of these answers.
Parties associated with the organization have
different risk preferences.
The managers of the organization have different
Question 4
objectives than the other shareholders.
Correct
The people who make the day-to-day decisions are
Mark 1.00 out of 1.00 not the owners.
The correct answer is: All of these answers.
Question 5
Which of the following occurred during the
Correct financial crisis of 2007-2008?
Mark 1.00 out of 1.00
Select one:
All of these answers
Several major institutions failed or were subject to
government takeover.
Significant declines in consumer wealth and prolonged
unemployment.
A currency crisis, with investors transferring their
wealth to countries with stronger currencies.
The correct answer is: All of these answers
Started on Monday, 18 November 2019, 7:12 PM
State Finished
Completed on Monday, 18 November 2019, 8:05 PM
Time taken 53 mins 50 secs
Marks 18.00/30.00
Grade 126.00 out of 210.00 (60%)
Question 1
A company needs to raise cash to cover its
Correct
operating expenses. The company will only
Mark 1.00 out need the funds for a short period of time.
of 1.00 Which financial market is the most
appropriate for the company use to raise
money (that is, likely the lowest cost and
best-matched maturity)?
Select one:
a. Capital market
b. All of these answers
c. Derivative market
d. Money market
The correct answer is: Money market
, What is the primary goal of the Sarbanes-Oxley act
according to the Module 1 video "The Goal of
Financial Management"?
Select one:
To help maintain a primary bull market.
To prevent a secular bear market.
Question 2
To protect corporate executives from frivolous
Correct
shareholder lawsuits.
Mark 1.00 out of 1.00 To protect investors from corporate abuse.
The correct answer is: To protect investors from corporate
abuse.
Question 3
Which of the following is an accurate characteristic
Correct of a sole proprietorship?
Mark 1.00 out of 1.00
Select one:
There is more than one owner.
The owner is personally liable for the business's debt
and obligations.
The owner must file a separate tax return for the
business.
A sole proprietorship typically elects board members
for staggered terms.
The correct answer is: The owner is personally liable for the
business's debt and obligations.
, Which of the following is a source of agency costs
in an organization?
Select one:
All of these answers.
Parties associated with the organization have
different risk preferences.
The managers of the organization have different
Question 4
objectives than the other shareholders.
Correct
The people who make the day-to-day decisions are
Mark 1.00 out of 1.00 not the owners.
The correct answer is: All of these answers.
Question 5
Which of the following occurred during the
Correct financial crisis of 2007-2008?
Mark 1.00 out of 1.00
Select one:
All of these answers
Several major institutions failed or were subject to
government takeover.
Significant declines in consumer wealth and prolonged
unemployment.
A currency crisis, with investors transferring their
wealth to countries with stronger currencies.
The correct answer is: All of these answers
