1
Which of the following is not an advantage to incorporating a business?
A. Easier access to financial markets
B. Limited liability
C. Becoming a permanent legal entity
D. Profits taxed at the corporate level and the shareholder level
Give this one a try later!
, D. Profits taxed at the corporate level and the shareholder level
1
Options are important instruments in the financial marketplace, and have been traded
since at least:
A. 1800 B.C.
B. 1000 B.C.
C. 1929.
D. 1972
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B. 1000 B.C.
Which of the following characteristics applies to the amortization of a loan such as a
home mortgage?
A. The amortization decreases with each payment.
B. The amortization increases with each payment.
C. The amortization is constant throughout the loan.
D. The amortization fluctuates monthly with changes in interest rates.
Give this one a try later!
B. The amortization increases with each payment.
Cash flows occurring in different periods should not be compared unless:
A. interest rates are expected to be stable.
B. the flows occur no more than one year from each other.
, C. high rates of interest can be earned on the flows.
D. the flows have been discounted to a common date.
Give this one a try later!
D. the flows have been discounted to a common date.
1
The term "capital structure" refers to:
A. the manner in which a firm obtains its long-term sources of funding.
B. the length of time needed to repay debt.
C. whether the firm invests in capital budgeting projects.
D. which specific assets the firm should invest in.
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A. the manner in which a firm obtains its long-term sources of funding.
5
What happens over time to the real cost of purchasing a home if the mortgage
payments are fixed in nominal terms and inflation is in existence?
A. The real cost is constant.
B. The real cost is increasing.
C. The real cost is decreasing.
D. The price index must be known to answer this question.
Give this one a try later!
C. The real cost is decreasing.
Which of the following is not an advantage to incorporating a business?
A. Easier access to financial markets
B. Limited liability
C. Becoming a permanent legal entity
D. Profits taxed at the corporate level and the shareholder level
Give this one a try later!
, D. Profits taxed at the corporate level and the shareholder level
1
Options are important instruments in the financial marketplace, and have been traded
since at least:
A. 1800 B.C.
B. 1000 B.C.
C. 1929.
D. 1972
Give this one a try later!
B. 1000 B.C.
Which of the following characteristics applies to the amortization of a loan such as a
home mortgage?
A. The amortization decreases with each payment.
B. The amortization increases with each payment.
C. The amortization is constant throughout the loan.
D. The amortization fluctuates monthly with changes in interest rates.
Give this one a try later!
B. The amortization increases with each payment.
Cash flows occurring in different periods should not be compared unless:
A. interest rates are expected to be stable.
B. the flows occur no more than one year from each other.
, C. high rates of interest can be earned on the flows.
D. the flows have been discounted to a common date.
Give this one a try later!
D. the flows have been discounted to a common date.
1
The term "capital structure" refers to:
A. the manner in which a firm obtains its long-term sources of funding.
B. the length of time needed to repay debt.
C. whether the firm invests in capital budgeting projects.
D. which specific assets the firm should invest in.
Give this one a try later!
A. the manner in which a firm obtains its long-term sources of funding.
5
What happens over time to the real cost of purchasing a home if the mortgage
payments are fixed in nominal terms and inflation is in existence?
A. The real cost is constant.
B. The real cost is increasing.
C. The real cost is decreasing.
D. The price index must be known to answer this question.
Give this one a try later!
C. The real cost is decreasing.
