1|Page
BUS 206 FINAL EXAM TESTBANK UPDATED
QUESTIONS AND 100% CORRECT ANSWERS
WITH A GUARANTEED A+|| 2025-2026 LATEST
AND COMPLETE UPDATE WITH VERIFIED
SOLUTIONS|| GUARANTEED PASS!!
Which of the following is not an example of a law which promotes order? -
ANSWER: disclosure statutes for securities sales
Terms of a consulting contract are an example of private law. - ANSWER: True
A personnel manual is an example of private law. - ANSWER: True
Spoilation is the destruction of evidence that is needed in a case. - ANSWER:
True
Tierra Smith has just opened her plumbing business in a small industrial park
located within the boundaries of the city of Tempe, Arizona. Upon opening her
plumbing business, Tierra receives a notice from the landlord that her largest
pieces of equipment (backhoes) may not be parked in the parking lot of the
industrial park overnight. Tierra asks why and the landlord explains that there is a
restriction in her lease. The restriction against parking equipment in the complex
is: - ANSWER: Enforceable as a private law
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globalization of stock markets, DIRECT PURCHASES - ANSWER: invest in
stocks of foreign companies that are listed on the local stock exchanges
globalization of stock markets, AMERICAN DEPOSITORY RECEIPTS -
ANSWER: certificates representing shares of non-US stock
the _____ allows investors to sell the stock they previously purchased, to other
investors - ANSWER: secondary market
how do investor decisions affect stock prices? - ANSWER: shift in the demand or
supply of shares for sale causes price changes
market price is determined by the aggregate participation of investors
Ownership of common stock entitles shareholders to a number of rights: -
ANSWER: can vote on KEY matters of the firm and the vote can be assigned to
management via a proxy.
why are dividends less desirable than bonds - ANSWER: dividends are not tax
deductible for the firm
why do dividends on preferred stock have less risk that when issuing bonds -
ANSWER: dividends on preferred stock can be omitted
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secondary stock offerings - ANSWER: new stock offering by a firm whose stock
is already publicly traded
preemptive rights - ANSWER: Rights that entitle shareholders to purchase newly
issued shares of a corporation's stock, equal in percentage to shares already held,
before the stock is offered to outside buyers.
shelf registration - ANSWER: publicly place securities without registering with
the SEC
what are the listing requirements for stock exchanges - ANSWER: minimum
number of shares outstanding, minimum level of earnings, cash flow, and revenue
over a recent period
the largest organized exchanged - ANSWER: NYSE
electronic quotation system - ANSWER: NASDAQ
lists stocks that have a price below $1 per share, also referred to as penny stocks. -
ANSWER: OTC bulletin board
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the OTC market where even smaller stocks are traded, and has very little trading
volume, traded seldom - ANSWER: pink sheets
price weighted average of stock prices of 30 largest U.S. firms - ANSWER: Dow
Jones Industrial Average (^DJI)
a value weighted average of stock prices of 500 large U.S. firms - ANSWER:
Standard & Poor's 500 (^GSPC)
the broadest index of the U.S. stock market - ANSWER: Wilshire 5000 Total
Market Index (^W5000)
the composite index is the average of all stocks traded on the NYSE - ANSWER:
New York Stock Exchange Index (^AMZI)
quotations on indexes of stocks traded on nasdaq - ANSWER: Nasdaq Stock
Index (^IXIC)
a specified symbol that is used to identify the firm - ANSWER: ticker
the stock's highest price and lowest price over the previous ___ weeks -
ANSWER: 52 week price range
BUS 206 FINAL EXAM TESTBANK UPDATED
QUESTIONS AND 100% CORRECT ANSWERS
WITH A GUARANTEED A+|| 2025-2026 LATEST
AND COMPLETE UPDATE WITH VERIFIED
SOLUTIONS|| GUARANTEED PASS!!
Which of the following is not an example of a law which promotes order? -
ANSWER: disclosure statutes for securities sales
Terms of a consulting contract are an example of private law. - ANSWER: True
A personnel manual is an example of private law. - ANSWER: True
Spoilation is the destruction of evidence that is needed in a case. - ANSWER:
True
Tierra Smith has just opened her plumbing business in a small industrial park
located within the boundaries of the city of Tempe, Arizona. Upon opening her
plumbing business, Tierra receives a notice from the landlord that her largest
pieces of equipment (backhoes) may not be parked in the parking lot of the
industrial park overnight. Tierra asks why and the landlord explains that there is a
restriction in her lease. The restriction against parking equipment in the complex
is: - ANSWER: Enforceable as a private law
,2|Page
globalization of stock markets, DIRECT PURCHASES - ANSWER: invest in
stocks of foreign companies that are listed on the local stock exchanges
globalization of stock markets, AMERICAN DEPOSITORY RECEIPTS -
ANSWER: certificates representing shares of non-US stock
the _____ allows investors to sell the stock they previously purchased, to other
investors - ANSWER: secondary market
how do investor decisions affect stock prices? - ANSWER: shift in the demand or
supply of shares for sale causes price changes
market price is determined by the aggregate participation of investors
Ownership of common stock entitles shareholders to a number of rights: -
ANSWER: can vote on KEY matters of the firm and the vote can be assigned to
management via a proxy.
why are dividends less desirable than bonds - ANSWER: dividends are not tax
deductible for the firm
why do dividends on preferred stock have less risk that when issuing bonds -
ANSWER: dividends on preferred stock can be omitted
,3|Page
secondary stock offerings - ANSWER: new stock offering by a firm whose stock
is already publicly traded
preemptive rights - ANSWER: Rights that entitle shareholders to purchase newly
issued shares of a corporation's stock, equal in percentage to shares already held,
before the stock is offered to outside buyers.
shelf registration - ANSWER: publicly place securities without registering with
the SEC
what are the listing requirements for stock exchanges - ANSWER: minimum
number of shares outstanding, minimum level of earnings, cash flow, and revenue
over a recent period
the largest organized exchanged - ANSWER: NYSE
electronic quotation system - ANSWER: NASDAQ
lists stocks that have a price below $1 per share, also referred to as penny stocks. -
ANSWER: OTC bulletin board
, 4|Page
the OTC market where even smaller stocks are traded, and has very little trading
volume, traded seldom - ANSWER: pink sheets
price weighted average of stock prices of 30 largest U.S. firms - ANSWER: Dow
Jones Industrial Average (^DJI)
a value weighted average of stock prices of 500 large U.S. firms - ANSWER:
Standard & Poor's 500 (^GSPC)
the broadest index of the U.S. stock market - ANSWER: Wilshire 5000 Total
Market Index (^W5000)
the composite index is the average of all stocks traded on the NYSE - ANSWER:
New York Stock Exchange Index (^AMZI)
quotations on indexes of stocks traded on nasdaq - ANSWER: Nasdaq Stock
Index (^IXIC)
a specified symbol that is used to identify the firm - ANSWER: ticker
the stock's highest price and lowest price over the previous ___ weeks -
ANSWER: 52 week price range
