ASSESSMENT LATEST EXAM REAL EXAM
QUESTIONS AND CORRECT ANSWERS
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Time - ANSWER ✓ Which concept describes the underlying driver behind all
finance
The study of fund management and asset allocation over time - ANSWER ✓
Which answer gives a definition of finance
Capital Market - ANSWER ✓ A company needs funds to expand its business by
purchasing new equipment. Which financial market should the company use to
raise money?
Money Market - ANSWER ✓ Used to finance short-term projets
Derivative market - ANSWER ✓ Are risky and used to finance short-term projects
Information asymmetry / financial markets provide additional informational to
management - ANSWER ✓ Financial markets can address which problem faced by
a company management
- ANSWER ✓ The U.S. Financial System is composed of financial institutions
and
markets that allow the exchange of funds between lenders, investors, and
borrowers.
The securities act of 1933 - ANSWER ✓ Which regulations primary purpose is to
ensure that buyers of securities received complete and accurate information before
they invest
, Federal law that set new or enhanced standards for all public company boards,
management, and public accounting firms in the US. BC of this act, top
management must now individually certify the accuracy of financial information.
Also know as the PUB Comp, ACCT, and Investor Protection Act and the
Corporate and Auditing Accountability and Responsibility Act. - ANSWER ✓
Which statement accurately describes the Sarbanes-Oxley Act of 2002
This act allows the SEC to order a penalty of up to three times the profit. -
ANSWER ✓ According to the Insider Trading Act of 1988, the SEC is allowed to
order a penalty of up to how much of the profit of the guilty parties.
- ANSWER ✓ Insider trading occurs when a member of an establishment uses
information readily available to the public in an attempt to increase his/her wealth
through buying or selling stock.
INSDIE TRADER - ANSWER ✓ According to the Example Case from the
Essential Reading section, a CEO was
charged with which crime from the Securities and Exchange Commission (SEC)?
The CEO was charged with providing his close friend with confidential
information
about his company's merger.
Ensuring that the financial statements accurately reflect the firm's performance. -
ANSWER ✓ Which answer option is not a job function associated with a corporate
finance department.
Valuing the profitability of multiple projects an choosing one in which to invest.
Determining whether to pay a dividend to the corporation's shareholders. Preparing
the corporations budget for the next fiscal quarter. - ANSWER ✓ Jobs associated
with a corporate finance department are
Personal, professional, and corporate - ANSWER ✓ What are the three central
components of business ethics.
to better understand the economic environment. to apply financial concepts to
business situations. To improve management of personal finances. - ANSWER ✓
Which answer is a reason why a person would study finance