ETS Business Exam. A+ Graded End Term Exam
Included
Finance: The decision rule for net present value is to - ✔✔Accept all projects with positive net present
values
Finance: One comes reason for issuing 2 distinct classes of common stock is to - ✔✔restrict voting
privileges from some shareholders
Finance: Treasury bills have a beta of zero? - ✔✔True
Finance: As the coupon rate of a bond increases, the bonds' - ✔✔interest payments increase
Finance: If a stock's P/E ratio is 13.5 at a time when earning $3 per year, what is the stock's current
price? - ✔✔$40.50 (13.5 * 3)
Finance: What are the 3 service/ product provided to corporations by financial markets and institutions?
- ✔✔Valuation of the company, financing, and contracts to manage risk
Finance: Cost of capital is the return investors could expect - ✔✔True
Finance: A firm's mixture of long term financing and equity financing is called... - ✔✔Capital structure
Finance: The weighted average cost of capital is adjusted for tax savings - ✔✔True
Finance: If there is a total of $800 on the balance sheet and long term bonds account for $200, what is
the weighted percentage that the long term bonds hold? - ✔✔25% (200/800= .25 *100)
Finance: Financial statement analysis is assuming relationships between the items of the balance sheet
and the profit and loss account - ✔✔True
,Finance: You've been saving up to buy the Godot Company. The total cost will be $10 million. You
currently have about $2.3 million. If you can earn 5% on your money, how long will you wait? - ✔✔20
million
Finance: What is an example of perpetuity? - ✔✔$10,000 annual payments from a trust fund forever
Law: It requires proof of breach of a statutory or common-law duty. is an example of? - ✔✔Tort of
negligence
Law: What is not true when it regards a seller's rights to reduce legal liability in the sale on non-
comsusmer goods? - ✔✔The seller can disclaim all implied warranties by simply stating that there are no
implied warranties.
Law: The establishment clause holds that - ✔✔The government cannot pass laws that promote religion
or show preference for one religion over another.
Law: If an injured party entered into an activity with knowledge that it may be dangerous and voluntarily
assumed that risk, which defense to the tort of negligence might be asserted? - ✔✔Assumption of risk
Law: In order to assert a design defect, a plaintiff might be able to show that a reasonable alternative
design was available and that the defendant's failure to adopt the alternative design rendered the
product unreasonably dangerous. - ✔✔True
Law: The Sherman act protect consumers from? - ✔✔Trade and commerce against unlawful restraints
and monopolies
Law: Violations of OSHA can result in (3) - ✔✔criminal penalties, fines, and termination
Law: Fair debt collection practices protect consumers from - ✔✔being harassed
, Law: Violations of the clean water act can result in (3) - ✔✔Criminal charges, cleaning up the polluted
area, and fines
Law: What are the requirements of all contracts (4) - ✔✔Consideration, legality, capacity, and
agreement
Law: What is the type of damage that would be used to recognize wrong doing when no monetary loss is
shown? - ✔✔Punitive
Law: A partner in an LLC can be held liable for the debts of the LLC? - ✔✔False
Law: A plaintiff in a lawsuit is not responsible for minimizing the damages they suffer as a result of the
defendant's actions - ✔✔False
Law: An example of intangible personal property? - ✔✔Copyrights
Law: A stock certificate issued by a corporation that evidences ownership of a specified number of
shares in the corporation - ✔✔True
Law: A corporation is a legal entity created and recognized by state law. It can consist of only one
natural person identified under a common name. - ✔✔False
Law: What are the legal defenses of a criminal culpability (3) - ✔✔Mistake of fact, statue of limitations,
and duress
Law: Civil law deals with the rights and duties exiting between individual persons, and persons and the
government, and the relief available when rights are violated. - ✔✔True
Law: In an agency relationship, the principal owes a duty to the agent. - ✔✔True
Included
Finance: The decision rule for net present value is to - ✔✔Accept all projects with positive net present
values
Finance: One comes reason for issuing 2 distinct classes of common stock is to - ✔✔restrict voting
privileges from some shareholders
Finance: Treasury bills have a beta of zero? - ✔✔True
Finance: As the coupon rate of a bond increases, the bonds' - ✔✔interest payments increase
Finance: If a stock's P/E ratio is 13.5 at a time when earning $3 per year, what is the stock's current
price? - ✔✔$40.50 (13.5 * 3)
Finance: What are the 3 service/ product provided to corporations by financial markets and institutions?
- ✔✔Valuation of the company, financing, and contracts to manage risk
Finance: Cost of capital is the return investors could expect - ✔✔True
Finance: A firm's mixture of long term financing and equity financing is called... - ✔✔Capital structure
Finance: The weighted average cost of capital is adjusted for tax savings - ✔✔True
Finance: If there is a total of $800 on the balance sheet and long term bonds account for $200, what is
the weighted percentage that the long term bonds hold? - ✔✔25% (200/800= .25 *100)
Finance: Financial statement analysis is assuming relationships between the items of the balance sheet
and the profit and loss account - ✔✔True
,Finance: You've been saving up to buy the Godot Company. The total cost will be $10 million. You
currently have about $2.3 million. If you can earn 5% on your money, how long will you wait? - ✔✔20
million
Finance: What is an example of perpetuity? - ✔✔$10,000 annual payments from a trust fund forever
Law: It requires proof of breach of a statutory or common-law duty. is an example of? - ✔✔Tort of
negligence
Law: What is not true when it regards a seller's rights to reduce legal liability in the sale on non-
comsusmer goods? - ✔✔The seller can disclaim all implied warranties by simply stating that there are no
implied warranties.
Law: The establishment clause holds that - ✔✔The government cannot pass laws that promote religion
or show preference for one religion over another.
Law: If an injured party entered into an activity with knowledge that it may be dangerous and voluntarily
assumed that risk, which defense to the tort of negligence might be asserted? - ✔✔Assumption of risk
Law: In order to assert a design defect, a plaintiff might be able to show that a reasonable alternative
design was available and that the defendant's failure to adopt the alternative design rendered the
product unreasonably dangerous. - ✔✔True
Law: The Sherman act protect consumers from? - ✔✔Trade and commerce against unlawful restraints
and monopolies
Law: Violations of OSHA can result in (3) - ✔✔criminal penalties, fines, and termination
Law: Fair debt collection practices protect consumers from - ✔✔being harassed
, Law: Violations of the clean water act can result in (3) - ✔✔Criminal charges, cleaning up the polluted
area, and fines
Law: What are the requirements of all contracts (4) - ✔✔Consideration, legality, capacity, and
agreement
Law: What is the type of damage that would be used to recognize wrong doing when no monetary loss is
shown? - ✔✔Punitive
Law: A partner in an LLC can be held liable for the debts of the LLC? - ✔✔False
Law: A plaintiff in a lawsuit is not responsible for minimizing the damages they suffer as a result of the
defendant's actions - ✔✔False
Law: An example of intangible personal property? - ✔✔Copyrights
Law: A stock certificate issued by a corporation that evidences ownership of a specified number of
shares in the corporation - ✔✔True
Law: A corporation is a legal entity created and recognized by state law. It can consist of only one
natural person identified under a common name. - ✔✔False
Law: What are the legal defenses of a criminal culpability (3) - ✔✔Mistake of fact, statue of limitations,
and duress
Law: Civil law deals with the rights and duties exiting between individual persons, and persons and the
government, and the relief available when rights are violated. - ✔✔True
Law: In an agency relationship, the principal owes a duty to the agent. - ✔✔True
