Question 1

What is the cumulative growth of money from interest paid over a given period of time known as?

Accepted Answer

A)  Compound growth 
B)  Rule of 72 
C)  Time value of money 
D)  Interest 
E)  Market value 
A)  Compound growth 
B)  Rule of 72 
C)  Time value of money 
D)  Interest 
E)  Market value

Question 2

What are low grade bonds usually called?

Accepted Answer

A)  Bankruptcy 
B)  Default bonds 
C)  Junk bonds 
D)  Corporate bonds 
E)  Grade B bonds 
A)  Bankruptcy 
B)  Default bonds 
C)  Junk bonds 
D)  Corporate bonds 
E)  Grade B bonds

Question 3

Partial ownership of a firm that is considered to be the strongest and financially sound is done through what method?

Accepted Answer

A)  Buying of mutual funds 
B)  Buying of blue-chip stocks 
C)  Dividend reinvestment 
D)  Funding of aggressive growth opportunities 
E)  Buying of load funds 
A)  Buying of mutual funds 
B)  Buying of blue-chip stocks 
C)  Dividend reinvestment 
D)  Funding of aggressive growth opportunities 
E)  Buying of load funds

Question 4

Which of the following is a summary of price trends in a specific industry and/or the stock market as a whole?

Accepted Answer

A)  Investment index 
B)  Average index 
C)  Market indicator 
D)  Market index 
E)  Prospectus 
A)  Investment index 
B)  Average index 
C)  Market indicator 
D)  Market index 
E)  Prospectus

Question 5

What value of a stock is calculated by dividing total shareholders' equity by the total number of shares of stock issued?

Accepted Answer

A)  Par value 
B)  Market value 
C)  Book value 
D)  Dividend value 
E)  Total value 
A)  Par value 
B)  Market value 
C)  Book value 
D)  Dividend value 
E)  Total value

Question 6

When a firm needs a large amount of capital for an extended period of time, what type of financing, even with stiff annual or semi-annual interest payments, might be best?

Accepted Answer

A)  Retained earnings 
B)  Corporate bonds 
C)  Common stock 
D)  Stock split 
E)  IPO 
A)  Retained earnings 
B)  Corporate bonds 
C)  Common stock 
D)  Stock split 
E)  IPO

Question 7

An investment bank operates in the secondary securities market.

Accepted Answer

A) True 
 B)False

Question 8

Describe the services provided by investment banks.

Accepted Answer

Investment banks provide three important

Question 9

A portfolio represents the proportion of funds invested in each of the investment alternatives.

Accepted Answer

A) True 
 B)False

Question 10

Stocks are known as securities because they represent a secured interest in a company.

Accepted Answer

A) True 
 B)False

Question 11

A bond is said to be in default if the borrower fails to make payment when due to lenders.

Accepted Answer

A) True 
 B)False

Question 12

Municipal bonds may be issued by federal, state, or local governments.

Accepted Answer

A) True 
 B)False

Question 13

What can a company do to attract investors when the value of their stock becomes too high?

Accepted Answer

A)  Use the increased value for equity financing 
B)  Institute a market cap 
C)  Increase earnings per share 
D)  Buy back some shares 
E)  Issue a stock split 
A)  Use the increased value for equity financing 
B)  Institute a market cap 
C)  Increase earnings per share 
D)  Buy back some shares 
E)  Issue a stock split

Question 14

Explain the difference between angel investors and venture capital.

Accepted Answer

Angel investors help many firms grow rap

Question 15

A bear market can be revealed by tracking ________, which is a summary of overall price trends.

Accepted Answer

A)  the Dow Jones Industrial Average 
B)  market indexes 
C)  the value of blue-chip stocks 
D)  technology-based economies 
E)  exchange-traded funds 
A)  the Dow Jones Industrial Average 
B)  market indexes 
C)  the value of blue-chip stocks 
D)  technology-based economies 
E)  exchange-traded funds

Question 16

Explain the difference between debt financing and equity financing.

Accepted Answer

Firms can meet their capital needs throu

Question 17

When an investor wants to enter the market with a minimum amount of investment, what type of opportunities would offer them ease of entry and low operating expenses?

Accepted Answer

A)  Securities 
B)  Common stock 
C)  Blue-chip stock 
D)  Exchange-traded funds 
E)  Mutual funds 
A)  Securities 
B)  Common stock 
C)  Blue-chip stock 
D)  Exchange-traded funds 
E)  Mutual funds

Question 18

Which of the following is a function performed by an investment bank?

Accepted Answer

A)  Handling a client's portfolio in the secondary market 
B)  Establishing relationships for a client with a commercial bank 
C)  Underwriting purchases of stocks and bonds 
D)  Arranging travel abroad for purchasers of foreign currencies 
E)  Providing insurance services for clients 
A)  Handling a client's portfolio in the secondary market 
B)  Establishing relationships for a client with a commercial bank 
C)  Underwriting purchases of stocks and bonds 
D)  Arranging travel abroad for purchasers of foreign currencies 
E)  Providing insurance services for clients

What is the cumulative growth of money from interest paid over a given period of time known as?

What are low grade bonds usually called?

Partial ownership of a firm that is considered to be the strongest and financially sound is done through what method?

Which of the following is a summary of price trends in a specific industry and/or the stock market as a whole?

What value of a stock is calculated by dividing total shareholders' equity by the total number of shares of stock issued?

When a firm needs a large amount of capital for an extended period of time, what type of financing, even with stiff annual or semi-annual interest payments, might be best?

An investment bank operates in the secondary securities market.

Describe the services provided by investment banks.

A portfolio represents the proportion of funds invested in each of the investment alternatives.

Stocks are known as securities because they represent a secured interest in a company.

A bond is said to be in default if the borrower fails to make payment when due to lenders.

Municipal bonds may be issued by federal, state, or local governments.

What can a company do to attract investors when the value of their stock becomes too high?

Explain the difference between angel investors and venture capital.

A bear market can be revealed by tracking ________, which is a summary of overall price trends.

Explain the difference between debt financing and equity financing.

When an investor wants to enter the market with a minimum amount of investment, what type of opportunities would offer them ease of entry and low operating expenses?

Which of the following is a function performed by an investment bank?

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

What is the cumulative growth of money from interest paid over a given period of time known as?

What are low grade bonds usually called?

Partial ownership of a firm that is considered to be the strongest and financially sound is done through what method?

Which of the following is a summary of price trends in a specific industry and/or the stock market as a whole?

What value of a stock is calculated by dividing total shareholders' equity by the total number of shares of stock issued?

When a firm needs a large amount of capital for an extended period of time, what type of financing, even with stiff annual or semi-annual interest payments, might be best?

An investment bank operates in the secondary securities market.

Describe the services provided by investment banks.

A portfolio represents the proportion of funds invested in each of the investment alternatives.

Stocks are known as securities because they represent a secured interest in a company.

A bond is said to be in default if the borrower fails to make payment when due to lenders.

Municipal bonds may be issued by federal, state, or local governments.

What can a company do to attract investors when the value of their stock becomes too high?

Explain the difference between angel investors and venture capital.

A bear market can be revealed by tracking ________, which is a summary of overall price trends.

Explain the difference between debt financing and equity financing.

When an investor wants to enter the market with a minimum amount of investment, what type of opportunities would offer them ease of entry and low operating expenses?

Which of the following is a function performed by an investment bank?

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