FNAN 522 midterm Exam|ALL
CORRECT ANSWERS
FNAN522-020_860-202020
Started on Friday, 29 November 2019, 1:05 PM
State Finished
Completed on Friday, 29 November 2019, 2:04 PM
Time taken 59 mins 19
secs
Marks 24.00/30.00
Grade 168.00 out of 210.00 (80%)
Question 1 A company needs to raise cash to cover its operating expenses. The company
Correct 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
Mark 1.00 out
cost and best-matched maturity)?
of 1.00
Select one:
a. Money market
b. Capital market
c. Derivative market
d. All of these answers
The correct answer is: Money market
Question 2
Correct What is the primary goal of the Sarbanes-Oxley act according to the Module 1
video "The Goal of Financial Management"?
Mark 1.00 out
of 1.00
Select one:
a. To protect investors from corporate abuse.
b. To help maintain a primary bull market.
c. To protect corporate executives from frivolous shareholder
lawsuits.
d. To prevent a secular bear market.
The correct answer is: To protect investors from corporate abuse.
,FNAN 522 midterm Exam|ALL
CORRECT ANSWERS
Question 3
Which of the following is an accurate characteristic of a sole proprietorship?
Correct
Mark 1.00 out Select one:
of 1.00
a. The owner is personally liable for the business's debt and
obligations.
b. There is more than one owner.
c. A sole proprietorship typically elects board members for
staggered terms.
d. The owner must file a separate tax return for the business.
The correct answer is: The owner is personally liable for the business's debt
and obligations.
Question 4
Which of the following is a source of agency costs in an organization?
Correct
Mark 1.00 out Select one:
of 1.00
a. Parties associated with the organization have
different risk preferences.
b. The people who make the day-to-day decisions are not the
owners.
c. All of these answers.
d. The managers of the organization have different objectives
than the other shareholders.
The correct answer is: All of these answers.
Question 5
Correct Which of the following occurred during the financial crisis of 2007-
Mark 1.00 out
of 1.00 2008? Select one:
a. All of these answers
b. Several major institutions failed or were subject to
government takeover.
c. A currency crisis, with investors transferring their wealth to
, FNAN 522 midterm Exam|ALL
CORRECT ANSWERS
c ment.
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CORRECT ANSWERS
FNAN522-020_860-202020
Started on Friday, 29 November 2019, 1:05 PM
State Finished
Completed on Friday, 29 November 2019, 2:04 PM
Time taken 59 mins 19
secs
Marks 24.00/30.00
Grade 168.00 out of 210.00 (80%)
Question 1 A company needs to raise cash to cover its operating expenses. The company
Correct 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
Mark 1.00 out
cost and best-matched maturity)?
of 1.00
Select one:
a. Money market
b. Capital market
c. Derivative market
d. All of these answers
The correct answer is: Money market
Question 2
Correct What is the primary goal of the Sarbanes-Oxley act according to the Module 1
video "The Goal of Financial Management"?
Mark 1.00 out
of 1.00
Select one:
a. To protect investors from corporate abuse.
b. To help maintain a primary bull market.
c. To protect corporate executives from frivolous shareholder
lawsuits.
d. To prevent a secular bear market.
The correct answer is: To protect investors from corporate abuse.
,FNAN 522 midterm Exam|ALL
CORRECT ANSWERS
Question 3
Which of the following is an accurate characteristic of a sole proprietorship?
Correct
Mark 1.00 out Select one:
of 1.00
a. The owner is personally liable for the business's debt and
obligations.
b. There is more than one owner.
c. A sole proprietorship typically elects board members for
staggered terms.
d. The owner must file a separate tax return for the business.
The correct answer is: The owner is personally liable for the business's debt
and obligations.
Question 4
Which of the following is a source of agency costs in an organization?
Correct
Mark 1.00 out Select one:
of 1.00
a. Parties associated with the organization have
different risk preferences.
b. The people who make the day-to-day decisions are not the
owners.
c. All of these answers.
d. The managers of the organization have different objectives
than the other shareholders.
The correct answer is: All of these answers.
Question 5
Correct Which of the following occurred during the financial crisis of 2007-
Mark 1.00 out
of 1.00 2008? Select one:
a. All of these answers
b. Several major institutions failed or were subject to
government takeover.
c. A currency crisis, with investors transferring their wealth to
, FNAN 522 midterm Exam|ALL
CORRECT ANSWERS
c ment.
o
u
n The correct answer is: All of these answers
tr
ie
s
w
it
h
st
r
o
n
g
e
r
c
u
rr
e
n
ci
e
s.
d. Sig
nifi
can
t
dec
line
s in
con
su
mer
wea
lth
and
prol
ong
ed
une
mpl
oy
