Exam 6: Firms, the Stock Market, and Corporate Governance

What is the Congressional act,enacted in 1933 and repealed in 1999,which prevented financial firms from being both commercial banks and investment banks?

Indirect finance includes the sale by a corporation of stocks or bonds,but does not include borrowing money from a bank.

A corporation is

How does a firm raise external funds through direct finance?

What type of business has the potential for double taxation of profits and why?

Stockholders

The three most widely followed stock indexes in the United States include all of the following except

Some corporate governance experts believe that serving on a company's board of directors for an extended length of time diminishes that member's independence from the company's CEO.If this is true,it would tend to

In August 2011,Standard & Poor's (S&P)changed its rating on U.S.Treasury bonds from ________ based on the state of the federal government's budget deficit.

Which of the following would explain why accounting profit might be greater than economic profit?

The Sarbanes-Oxley Act of 2002 was passed in response to what event?

What are earnings per share equal to?

Dividing the dividend payment by the stock's closing market price determines the

Direct finance includes the sale by a corporation of stocks or bonds,but does not include borrowing money from a bank.

The existence of ________ increases the risk of buying stock in a corporation.

The Sarbanes-Oxley Act of 2002 requires that CEOs personally certify the accuracy of financial reports.

Which type of businesses earns the majority of profits in the United States?

When an investor buys a corporate bond

Members of management serving on the board of directors of a corporation are referred to as outside directors.

An asset is