Question 1

How does a corporate raider attempt to take control of a company and its assets?

Accepted Answer

A)  Buying shares of stock on the open market 
B)  Joining the Board of Directors 
C)  Attend the annual shareholders' meeting to solicit support 
D)  Increase the value of shares on the market prompting a large sell off 
E)  Buying stock in competitor's companies 
A)  Buying shares of stock on the open market 
B)  Joining the Board of Directors 
C)  Attend the annual shareholders' meeting to solicit support 
D)  Increase the value of shares on the market prompting a large sell off 
E)  Buying stock in competitor's companies

Question 2

The time it takes to double an investment can be estimated by using which of the following?

Accepted Answer

A)  Book value 
B)  The Rule of 72 
C)  Blue-chips 
D)  Dividends 
E)  Market value 
A)  Book value 
B)  The Rule of 72 
C)  Blue-chips 
D)  Dividends 
E)  Market value

Question 3

New stocks and bonds are sold in what market?

Accepted Answer

A)  Private placement market 
B)  Secondary market 
C)  Primary market 
D)  Tertiary market 
E)  Open market 
A)  Private placement market 
B)  Secondary market 
C)  Primary market 
D)  Tertiary market 
E)  Open market

Question 4

Which of the following terms refers to a bundling of stocks, bonds, and other securities?

Accepted Answer

A)  Blue-chips 
B)  Mutual funds 
C)  Exchanges 
D)  Commodities 
E)  Dividends 
A)  Blue-chips 
B)  Mutual funds 
C)  Exchanges 
D)  Commodities 
E)  Dividends

Question 5

Unlike the Dow and the S&P 500, all NASDAQ-listed companies, not just a selected few, are included in the index for a total of some 3,400 firms across six continents.

Accepted Answer

A) True 
 B)False

Question 6

What is the legal document that identifies a borrower's obligation when issuing corporate bonds?

Accepted Answer

A)  Bondholder's claim 
B)  Risk claim analysis 
C)  Initial public offering 
D)  Mortgage-backed security 
E)  Bond indenture 
A)  Bondholder's claim 
B)  Risk claim analysis 
C)  Initial public offering 
D)  Mortgage-backed security 
E)  Bond indenture

Question 7

Explain the principle of compound growth.

Accepted Answer

Compound growth is the compounding of in

Question 8

How are federal and state projects, such as roads and schools, typically financed?

Accepted Answer

A)  Municipal bonds 
B)  Common stock 
C)  Angel investors 
D)  Corporate bonds 
E)  TARP loans 
A)  Municipal bonds 
B)  Common stock 
C)  Angel investors 
D)  Corporate bonds 
E)  TARP loans

Question 9

When do investors expect a higher rate of return on their investments?

Accepted Answer

A)  When there is greater uncertainty 
B)  When the investment requires more upfront capital 
C)  When the investment is stable 
D)  When there is a short time commitment 
E)  When the investment is for a larger share of the offering 
A)  When there is greater uncertainty 
B)  When the investment requires more upfront capital 
C)  When the investment is stable 
D)  When there is a short time commitment 
E)  When the investment is for a larger share of the offering

Question 10

Which stock exchange has the highest volume of shares traded?

Accepted Answer

A)  American Stock Exchange (AS
E)  
B)  New York Stock Exchange (NYS
E)  
C)  National Association of Securities Dealers Automated Quotation System (NASDAQ) 
D)  Philadelphia Stock Exchange (PS
E)  
E)  Securities and Exchange Commission (SE
C)  
A)  American Stock Exchange (AS
E)  
B)  New York Stock Exchange (NYS
E)  
C)  National Association of Securities Dealers Automated Quotation System (NASDAQ) 
D)  Philadelphia Stock Exchange (PS
E)  
E)  Securities and Exchange Commission (SE
C)

Question 11

Stock brokers earn commissions from the individuals and organizations for which they place orders.

Accepted Answer

A) True 
 B)False

Question 12

An investment bank is a financial institution that specializes in issuing and reselling new securities.

Accepted Answer

A) True 
 B)False

Question 13

When are corporate bonds attractive to a firm?

Accepted Answer

Bonds are attractive when firms need lar

Question 14

Which of the following offers the greatest indication of the value of a business?

Accepted Answer

A)  Value of the initial public offering of stock 
B)  Investors' opinions of past management and expectations for the future 
C)  Short-term financial returns 
D)  Likelihood of stock splits in the near future 
E)  Short-term stock prices 
A)  Value of the initial public offering of stock 
B)  Investors' opinions of past management and expectations for the future 
C)  Short-term financial returns 
D)  Likelihood of stock splits in the near future 
E)  Short-term stock prices

Question 15

What is the advantage to a small business when planning for shortfalls in cash flow?

Accepted Answer

A)  Financial resources can be saved in a savings account until needed. 
B)  Banks are more likely to offer loans if they know when the money will be needed. 
C)  Loans can be obtained in advanced and put in interest earning investments. 
D)  Lower interest loans can be sought for the needed time frame. 
E)  Small businesses will appear more professional, resulting in favorable banking relationships. 
A)  Financial resources can be saved in a savings account until needed. 
B)  Banks are more likely to offer loans if they know when the money will be needed. 
C)  Loans can be obtained in advanced and put in interest earning investments. 
D)  Lower interest loans can be sought for the needed time frame. 
E)  Small businesses will appear more professional, resulting in favorable banking relationships.

Question 16

Explain the Rule of 72.

Accepted Answer

The Rule of 72 is used to figure out how

Question 17

How can an investor request the courts to enforce a bond's terms of payment?

Accepted Answer

A)  File for bankruptcy 
B)  Ask for an improved risk rating on the bond 
C)  File a bondholders' claim 
D)  Have the bond converted to stock 
E)  Have the bond converted to a mortgage-backed security 
A)  File for bankruptcy 
B)  Ask for an improved risk rating on the bond 
C)  File a bondholders' claim 
D)  Have the bond converted to stock 
E)  Have the bond converted to a mortgage-backed security

Question 18

What is the result of a borrower who fails to make payments to the lender when due?

Accepted Answer

A)  Bankruptcy 
B)  Default 
C)  Risk ratings 
D)  Bondholder's claim 
E)  Bond indenture 
A)  Bankruptcy 
B)  Default 
C)  Risk ratings 
D)  Bondholder's claim 
E)  Bond indenture

Question 19

What is the outcome when a corporate raider takes over an organization?

Accepted Answer

A)  The value of assets decreases. 
B)  Assets are sold off at a profit. 
C)  The value of the stock increases. 
D)  The company can be reorganized into a stronger, more productive organization. 
E)  A hostile takeover is avoided. 
A)  The value of assets decreases. 
B)  Assets are sold off at a profit. 
C)  The value of the stock increases. 
D)  The company can be reorganized into a stronger, more productive organization. 
E)  A hostile takeover is avoided.

Question 20

Mutual funds are traded in securities markets.

Accepted Answer

A) True 
 B)False

How does a corporate raider attempt to take control of a company and its assets?

The time it takes to double an investment can be estimated by using which of the following?

New stocks and bonds are sold in what market?

Which of the following terms refers to a bundling of stocks, bonds, and other securities?

Unlike the Dow and the S&P 500, all NASDAQ-listed companies, not just a selected few, are included in the index for a total of some 3,400 firms across six continents.

What is the legal document that identifies a borrower's obligation when issuing corporate bonds?

Explain the principle of compound growth.

How are federal and state projects, such as roads and schools, typically financed?

When do investors expect a higher rate of return on their investments?

Which stock exchange has the highest volume of shares traded?

Stock brokers earn commissions from the individuals and organizations for which they place orders.

An investment bank is a financial institution that specializes in issuing and reselling new securities.

When are corporate bonds attractive to a firm?

Which of the following offers the greatest indication of the value of a business?

What is the advantage to a small business when planning for shortfalls in cash flow?

Explain the Rule of 72.

How can an investor request the courts to enforce a bond's terms of payment?

What is the result of a borrower who fails to make payments to the lender when due?

What is the outcome when a corporate raider takes over an organization?

Mutual funds are traded in securities markets.

The U.S. Business Environment

Understanding Business Ethics and Social Responsibility

Entrepreneurship, New Ventures, and Business Ownership

Understanding the Global Context of Business

Managing the Business

Organizing the Business

Operations Management and Quality

Employee Behavior and Motivation

Leadership and Decision Making

Human Resource Management and Labor Relations

Marketing Processes and Consumer Behavior

Developing and Pricing Products

Distributing and Promoting Products

Information Technology (IT)for Business

The Role of Accountants and Accounting Information

Understanding Money and the Role of Banking

Filters

Exam 17: Managing Business Finances

How does a corporate raider attempt to take control of a company and its assets?

The time it takes to double an investment can be estimated by using which of the following?

New stocks and bonds are sold in what market?

Which of the following terms refers to a bundling of stocks, bonds, and other securities?

Unlike the Dow and the S&P 500, all NASDAQ-listed companies, not just a selected few, are included in the index for a total of some 3,400 firms across six continents.

What is the legal document that identifies a borrower's obligation when issuing corporate bonds?

Explain the principle of compound growth.

How are federal and state projects, such as roads and schools, typically financed?

When do investors expect a higher rate of return on their investments?

Which stock exchange has the highest volume of shares traded?

Stock brokers earn commissions from the individuals and organizations for which they place orders.

An investment bank is a financial institution that specializes in issuing and reselling new securities.

When are corporate bonds attractive to a firm?

Which of the following offers the greatest indication of the value of a business?

What is the advantage to a small business when planning for shortfalls in cash flow?

Explain the Rule of 72.

How can an investor request the courts to enforce a bond's terms of payment?

What is the result of a borrower who fails to make payments to the lender when due?

What is the outcome when a corporate raider takes over an organization?

Mutual funds are traded in securities markets.

The U.S. Business Environment

Understanding Business Ethics and Social Responsibility

Entrepreneurship, New Ventures, and Business Ownership

Understanding the Global Context of Business

Managing the Business

Organizing the Business

Operations Management and Quality

Employee Behavior and Motivation

Leadership and Decision Making

Human Resource Management and Labor Relations

Marketing Processes and Consumer Behavior

Developing and Pricing Products

Distributing and Promoting Products

Information Technology (IT)for Business

The Role of Accountants and Accounting Information

Understanding Money and the Role of Banking

Filters