A company needs to raise cash to cover its operating expenses. The company will only need the
funds for a short period of time. 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. Derivative market
c. All of these answers
d. 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:
a. To protect corporate executives from frivolous shareholder lawsuits.
b. To protect investors from corporate abuse.
c. To help maintain a primary bull market.
d. To prevent a secular bear market.
Which of the following is an accurate characteristic of a sole proprietorship?
Select one:
a. The owner is personally liable for the business's debt and obligations.
b. The owner must file a separate tax return for the business.
c. There is more than one owner.
d. A sole proprietorship typically elects board members for staggered terms.
Which of the following is a source of agency costs in an organization?
Select one:
a. The managers of the organization have different objectives than the other shareholders.
b. The people who make the day-to-day decisions are not the owners.
c. All of these answers.
d. Parties associated with the organization have different risk preferences.
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, Which of the following occurred during the financial crisis of 2007-2008?
Select one:
a. Several major institutions failed or were subject to government takeover.
b. All of these answers
c. A currency crisis, with investors transferring their wealth to countries with stronger currencies.
d. Significant declines in consumer wealth and prolonged unemployment.
Which of the following terms describes the protection of personal assets stemming from the
corporate structure?
Select one:
a. limited liability
b. simple transference
c. double taxation
d. articles of incorporation
What will $250,000 grow to be in 11 years if it is invested today in an account with an annual interest
rate of 6%?
Select one:
a. $96,558.42
b. $637,365.32
c. $351,268.46
d. $474,574.64
Approximately how many years will it take for $36,000 to grow to be $68,000 if it is invested in an
account with an annual interest rate of 8%? Choose the closest answer.
Select one:
a. 6 years.
b. 12 years.
c. 8 years.
d. 10 years.
This study source was downloaded by 100000839495789 from CourseHero.com on 06-15-2022 05:48:34 GMT -05:00
https://www.coursehero.com/file/70678140/Exam-1-Questions-Answersdocx/
funds for a short period of time. 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. Derivative market
c. All of these answers
d. 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:
a. To protect corporate executives from frivolous shareholder lawsuits.
b. To protect investors from corporate abuse.
c. To help maintain a primary bull market.
d. To prevent a secular bear market.
Which of the following is an accurate characteristic of a sole proprietorship?
Select one:
a. The owner is personally liable for the business's debt and obligations.
b. The owner must file a separate tax return for the business.
c. There is more than one owner.
d. A sole proprietorship typically elects board members for staggered terms.
Which of the following is a source of agency costs in an organization?
Select one:
a. The managers of the organization have different objectives than the other shareholders.
b. The people who make the day-to-day decisions are not the owners.
c. All of these answers.
d. Parties associated with the organization have different risk preferences.
This study source was downloaded by 100000839495789 from CourseHero.com on 06-15-2022 05:48:34 GMT -05:00
https://www.coursehero.com/file/70678140/Exam-1-Questions-Answersdocx/
, Which of the following occurred during the financial crisis of 2007-2008?
Select one:
a. Several major institutions failed or were subject to government takeover.
b. All of these answers
c. A currency crisis, with investors transferring their wealth to countries with stronger currencies.
d. Significant declines in consumer wealth and prolonged unemployment.
Which of the following terms describes the protection of personal assets stemming from the
corporate structure?
Select one:
a. limited liability
b. simple transference
c. double taxation
d. articles of incorporation
What will $250,000 grow to be in 11 years if it is invested today in an account with an annual interest
rate of 6%?
Select one:
a. $96,558.42
b. $637,365.32
c. $351,268.46
d. $474,574.64
Approximately how many years will it take for $36,000 to grow to be $68,000 if it is invested in an
account with an annual interest rate of 8%? Choose the closest answer.
Select one:
a. 6 years.
b. 12 years.
c. 8 years.
d. 10 years.
This study source was downloaded by 100000839495789 from CourseHero.com on 06-15-2022 05:48:34 GMT -05:00
https://www.coursehero.com/file/70678140/Exam-1-Questions-Answersdocx/
