Question 1

Which is the most widely cited U.S. stock market index?

Accepted Answer

A)  Standard & Poor's Composite Index of 500 Stocks 
B)  the NYSE index 
C)  Dow Jones Industrial Average 
D)  Moody's Stock List 
E)  the NASDAQ 
A)  Standard & Poor's Composite Index of 500 Stocks 
B)  the NYSE index 
C)  Dow Jones Industrial Average 
D)  Moody's Stock List 
E)  the NASDAQ

Question 2

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 3,800 firms across six continents.

Accepted Answer

A) True 
 B)False

Question 3

The stock of Simonsen, Inc. is being bought up by an individual who intends to take over Simonsen and sell off its assets for a profit. What is the individual in this scenario called?

Accepted Answer

A)  angel investor 
B)  corporate raider 
C)  inside trader 
D)  stock broker 
E)  bondholder 
A)  angel investor 
B)  corporate raider 
C)  inside trader 
D)  stock broker 
E)  bondholder

Question 4

Diamond Electronics has ascertained that it is has positive working capital. Which of the following must be True of Diamond Electronics?

Accepted Answer

A)  The firm's current liabilities are large enough to pay off current assets. 
B)  The firm may need to borrow money from a commercial bank. 
C)  The firm's current assets are large enough to pay off current liabilities. 
D)  The firm does not need to issue stock. 
E)  The firm would be a bad risk for any investor to consider. 
A)  The firm's current liabilities are large enough to pay off current assets. 
B)  The firm may need to borrow money from a commercial bank. 
C)  The firm's current assets are large enough to pay off current liabilities. 
D)  The firm does not need to issue stock. 
E)  The firm would be a bad risk for any investor to consider.

Question 5

In 2008, each share of GE stock was receiving annual dividends payments of $1.24. If on a particular day, the share price was $33.82, what would the current yield be?

Accepted Answer

Current dividend yield and interest divi

Question 6

Shawna has gotten into investing and is interested in aggressive growth funds. Which of the following must be True about Shawna?

Accepted Answer

A)  She is interested in the best possible returns over time. 
B)  She is interested in making money as quickly as possible. 
C)  She has comparatively little money to invest. 
D)  She wants to make as secure an investment as possible. 
E)  She is investing for a financial thrill ride. 
A)  She is interested in the best possible returns over time. 
B)  She is interested in making money as quickly as possible. 
C)  She has comparatively little money to invest. 
D)  She wants to make as secure an investment as possible. 
E)  She is investing for a financial thrill ride.

Question 7

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)  chime value 
E)  total value 
A)  par value 
B)  market value 
C)  book value 
D)  chime value 
E)  total value

Question 8

Initial public offerings (IPOs) are the first sale of a company's stock to the general public and are a major source of funds that fuel continued growth for many firms.

Accepted Answer

A) True 
 B)False

Question 9

Dividend payments are optional and variable-the corporation's CEO decides whether and when a dividend will be paid, as well as the amount that is best for the future of the company and its employees.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is a requirement for a firm to be listed on the New York Stock Exchange?

Accepted Answer

A)  capital value of at least $35 million 
B)  total value of outstanding stock 
C)  number of shareholders must exceed 100 
D)  number of shares of stock must exceed 1 million 
E)  company must be headquartered in North America 
A)  capital value of at least $35 million 
B)  total value of outstanding stock 
C)  number of shareholders must exceed 100 
D)  number of shares of stock must exceed 1 million 
E)  company must be headquartered in North America

Question 11

Javier wants to invest, but wants to reduce his risk of loss by spreading the total investment across more stocks. Javier would be most interested in which of the following?

Accepted Answer

A)  spreading 
B)  shorting 
C)  margin buying 
D)  diversification 
E)  asset allocation 
A)  spreading 
B)  shorting 
C)  margin buying 
D)  diversification 
E)  asset allocation

Question 12

What is a stock's book value?

Accepted Answer

A)  the current price of a share of stock in the stock market 
B)  the average price of one share of stock over the past year 
C)  the face value of a share of stock, set by the issuing company's board of directors 
D)  the value of a common stock expressed as total stockholders' equity divided by the total number of shares of stock issued 
E)  the value of a preferred stock as expressed by the number of stock shares issued by the board of directors 
A)  the current price of a share of stock in the stock market 
B)  the average price of one share of stock over the past year 
C)  the face value of a share of stock, set by the issuing company's board of directors 
D)  the value of a common stock expressed as total stockholders' equity divided by the total number of shares of stock issued 
E)  the value of a preferred stock as expressed by the number of stock shares issued by the board of directors

Question 13

Which of the following is the name for a portion of the ownership of a corporation?

Accepted Answer

A)  Schedule C 
B)  stock 
C)  partnership 
D)  LLC 
E)  dividend 
A)  Schedule C 
B)  stock 
C)  partnership 
D)  LLC 
E)  dividend

Question 14

Omar Ansari, a relatively conservative investor, received a prospectus from his stockbroker providing details about XYXY Biotech Company and its planned IPO. XYXY was developing a new and promising type of anti-cancer drug. After studying the prospectus, Omar decided not to invest in the IPO. Which one of the following items of information in the prospectus was most likely NOT a factor in Omar's decision?

Accepted Answer

A)  XYXY was competing with many other biotech companies. 
B)  XYXY's CEO, although not a famous scientist, had a solid background in cancer research. 
C)  XYXY's drug might not be approved by the FDA. 
D)  XYXY would not be profitable for many years, even if its new drug was approved by the FDA. 
E)  XYXY would soon have to return to the capital market for additional financing. 
A)  XYXY was competing with many other biotech companies. 
B)  XYXY's CEO, although not a famous scientist, had a solid background in cancer research. 
C)  XYXY's drug might not be approved by the FDA. 
D)  XYXY would not be profitable for many years, even if its new drug was approved by the FDA. 
E)  XYXY would soon have to return to the capital market for additional financing.

Question 15

Jessica Jenkins, a 30-year-old history teacher, planned to invest $10,000 in an equity mutual fund. She wanted a fund with maximum geographical diversification. Jessica was seeking high capital gains from her investment and was comfortable with a fair amount of risk. Which one of the following types of mutual fund would Jessica most likely choose?

Accepted Answer

A)  large-cap technology fund 
B)  global large-cap value fund 
C)  global small-cap growth fund 
D)  Asian large-cap growth fund 
E)  foreign medium-cap growth fund 
A)  large-cap technology fund 
B)  global large-cap value fund 
C)  global small-cap growth fund 
D)  Asian large-cap growth fund 
E)  foreign medium-cap growth fund

Question 16

The profit realized when the market value of an investment increases is known as which of the following?

Accepted Answer

A)  capital gains 
B)  asset allocation 
C)  diversification 
D)  price appreciation 
E)  profiteering 
A)  capital gains 
B)  asset allocation 
C)  diversification 
D)  price appreciation 
E)  profiteering

Question 17

Bankruptcy is the court-granted permission not to pay some or all debts.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is an advantage of ETFs over mutual funds?

Accepted Answer

A)  ETFs can be traded throughout the day like a stock. 
B)  ETFs have high operating expenses. 
C)  ETFs do not require high initial investments. 
D)  ETFs are not regulated by the government. 
E)  ETFs are difficult to sell in a timely manner. 
A)  ETFs can be traded throughout the day like a stock. 
B)  ETFs have high operating expenses. 
C)  ETFs do not require high initial investments. 
D)  ETFs are not regulated by the government. 
E)  ETFs are difficult to sell in a timely manner.

Question 19

When giving an unsecured loan, what might a bank require?

Accepted Answer

The bank requires the borrower to mainta

Question 20

The market in which mutual funds are sold are called securities markets.

Accepted Answer

A) True 
 B)False

Which is the most widely cited U.S. stock market index?

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 3,800 firms across six continents.

The stock of Simonsen, Inc. is being bought up by an individual who intends to take over Simonsen and sell off its assets for a profit. What is the individual in this scenario called?

Diamond Electronics has ascertained that it is has positive working capital. Which of the following must be True of Diamond Electronics?

In 2008, each share of GE stock was receiving annual dividends payments of $1.24. If on a particular day, the share price was $33.82, what would the current yield be?

Shawna has gotten into investing and is interested in aggressive growth funds. Which of the following must be True about Shawna?

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

Initial public offerings (IPOs) are the first sale of a company's stock to the general public and are a major source of funds that fuel continued growth for many firms.

Dividend payments are optional and variable-the corporation's CEO decides whether and when a dividend will be paid, as well as the amount that is best for the future of the company and its employees.

Which of the following is a requirement for a firm to be listed on the New York Stock Exchange?

Javier wants to invest, but wants to reduce his risk of loss by spreading the total investment across more stocks. Javier would be most interested in which of the following?

What is a stock's book value?

Which of the following is the name for a portion of the ownership of a corporation?

The profit realized when the market value of an investment increases is known as which of the following?

Bankruptcy is the court-granted permission not to pay some or all debts.

Which of the following is an advantage of ETFs over mutual funds?

When giving an unsecured loan, what might a bank require?

The market in which mutual funds are sold are called securities markets.

The Us Business Environment

Business Ethics and Social Responsibility

Entrepreneurship, New Ventures, and Business Ownership

The Global Context of Business

Business Management

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

Pricing, Distributing, and Promoting Products

Information Technology for Business

The Role of Accountants and Accounting Information

Money and Banking

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Exam 16: Managing Finances

Which is the most widely cited U.S. stock market index?

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 3,800 firms across six continents.

The stock of Simonsen, Inc. is being bought up by an individual who intends to take over Simonsen and sell off its assets for a profit. What is the individual in this scenario called?

Diamond Electronics has ascertained that it is has positive working capital. Which of the following must be True of Diamond Electronics?

In 2008, each share of GE stock was receiving annual dividends payments of $1.24. If on a particular day, the share price was $33.82, what would the current yield be?

Shawna has gotten into investing and is interested in aggressive growth funds. Which of the following must be True about Shawna?

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

Initial public offerings (IPOs) are the first sale of a company's stock to the general public and are a major source of funds that fuel continued growth for many firms.

Dividend payments are optional and variable-the corporation's CEO decides whether and when a dividend will be paid, as well as the amount that is best for the future of the company and its employees.

Which of the following is a requirement for a firm to be listed on the New York Stock Exchange?

Javier wants to invest, but wants to reduce his risk of loss by spreading the total investment across more stocks. Javier would be most interested in which of the following?

What is a stock's book value?

Which of the following is the name for a portion of the ownership of a corporation?

The profit realized when the market value of an investment increases is known as which of the following?

Bankruptcy is the court-granted permission not to pay some or all debts.

Which of the following is an advantage of ETFs over mutual funds?

When giving an unsecured loan, what might a bank require?

The market in which mutual funds are sold are called securities markets.

The Us Business Environment

Business Ethics and Social Responsibility

Entrepreneurship, New Ventures, and Business Ownership

The Global Context of Business

Business Management

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

Pricing, Distributing, and Promoting Products

Information Technology for Business

The Role of Accountants and Accounting Information

Money and Banking

Filters