Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

Before the Securities and Exchange Commission allows a firm to issue a public offering of new securities,what must be filed?

Accepted Answer

A)  Incidents of insider trading 
B)  A prospectus 
C)  The firm's history of reinvesting retained earning 
D)  A statement of equity financing to be used 
E)  The firm's corporate bond rating 
A)  Incidents of insider trading 
B)  A prospectus 
C)  The firm's history of reinvesting retained earning 
D)  A statement of equity financing to be used 
E)  The firm's corporate bond rating

Question 3

How is the risk involved in purchasing bonds affected by the bond's maturity date?

Accepted Answer

A)  The sooner the maturity date, the greater the rate of return is on the bond. 
B)  The further the maturity date, the less likely a bondholders' claim will be filed. 
C)  The sooner the maturity date, the lower the initial offering price of the bond. 
D)  The further the maturity date, the greater the chance for unforeseen circumstances that affect the bond. 
E)  The sooner the maturity date, the greater the chance for significant market changes that affect the bond. 
A)  The sooner the maturity date, the greater the rate of return is on the bond. 
B)  The further the maturity date, the less likely a bondholders' claim will be filed. 
C)  The sooner the maturity date, the lower the initial offering price of the bond. 
D)  The further the maturity date, the greater the chance for unforeseen circumstances that affect the bond. 
E)  The sooner the maturity date, the greater the chance for significant market changes that affect the bond.

Question 4

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 5

Which of the following is an organization of individuals coordinated to provide an institutional setting in which stock can be bought and sold?

Accepted Answer

A)  Stock exchange 
B)  Brokerage 
C)  Server 
D)  Over-the-counter market 
E)  Mutual fund 
A)  Stock exchange 
B)  Brokerage 
C)  Server 
D)  Over-the-counter market 
E)  Mutual fund

Question 6

An exchange-traded fund (ETF)is a bundle of stocks (or bonds)that are in an index that tracks the overall movement of a market.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

What type of investment would preserve capital investment but seek capital appreciation?

Accepted Answer

A)  Blue-chip stock 
B)  Balanced funds 
C)  Aggressive growth funds 
D)  No-load funds 
E)  Mutual funds 
A)  Blue-chip stock 
B)  Balanced funds 
C)  Aggressive growth funds 
D)  No-load funds 
E)  Mutual funds

Question 9

Explain the difference between angel investors and venture capital.

Accepted Answer

Angel investors help many firms grow rap

Question 10

Explain the difference between debt financing and equity financing.

Accepted Answer

Firms can meet their capital needs throu

Question 11

More Americans are investing in the stock market through online trading.Explain the value of online trading.

Accepted Answer

The popularity of online trading stems f

Question 12

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 13

Which of the following is indicative of a bull market?

Accepted Answer

A)  Stock prices that are averaging 20 percent off peak 
B)  Rising stock prices for 12 months or more 
C)  Falling stock prices for 6 months or more 
D)  A spike in the value of the Dow Jones Industrial Average 
E)  Investors who are motivated to sell stocks based on current value 
A)  Stock prices that are averaging 20 percent off peak 
B)  Rising stock prices for 12 months or more 
C)  Falling stock prices for 6 months or more 
D)  A spike in the value of the Dow Jones Industrial Average 
E)  Investors who are motivated to sell stocks based on current value

Question 14

Which of the following is a formal pledge (an IOU)obligating the issuer to pay interest periodically and repay the principal at maturity (a preset future date)to the lender?

Accepted Answer

A)  Commercial bank loan 
B)  Corporate bond 
C)  Mutual fund 
D)  Bond indenture 
E)  Prospectus 
A)  Commercial bank loan 
B)  Corporate bond 
C)  Mutual fund 
D)  Bond indenture 
E)  Prospectus

Question 15

While it's invested,money grows by earning interest.What is the cumulative growth from interest paid over given time periods referred to as?

Accepted Answer

A)  Compound growth 
B)  Dividend 
C)  Capital gains 
D)  Security 
E)  Diversity 
A)  Compound growth 
B)  Dividend 
C)  Capital gains 
D)  Security 
E)  Diversity

Question 16

Discuss how a stock split works if a company has 100,000 common shares outstanding that are trading at $100 per share.

Accepted Answer

If a company has 100,000 common shares o

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

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 19

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 expressed as total stockholders' equity divided by the total number of shares of stock issued 
E)  The value 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 expressed as total stockholders' equity divided by the total number of shares of stock issued 
E)  The value expressed by the number of stock shares issued by the board of directors

Question 20

What is the term for buying several different kinds of investments rather than just one?

Accepted Answer

A)  Spreading 
B)  Shorting 
C)  Margin buying 
D)  Diversification 
E)  Management 
A)  Spreading 
B)  Shorting 
C)  Margin buying 
D)  Diversification 
E)  Management

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

Before the Securities and Exchange Commission allows a firm to issue a public offering of new securities,what must be filed?

How is the risk involved in purchasing bonds affected by the bond's maturity date?

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

Which of the following is an organization of individuals coordinated to provide an institutional setting in which stock can be bought and sold?

An exchange-traded fund (ETF)is a bundle of stocks (or bonds)that are in an index that tracks the overall movement of a market.

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

What type of investment would preserve capital investment but seek capital appreciation?

Explain the difference between angel investors and venture capital.

Explain the difference between debt financing and equity financing.

More Americans are investing in the stock market through online trading.Explain the value of online trading.

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

Which of the following is indicative of a bull market?

Which of the following is a formal pledge (an IOU)obligating the issuer to pay interest periodically and repay the principal at maturity (a preset future date)to the lender?

While it's invested,money grows by earning interest.What is the cumulative growth from interest paid over given time periods referred to as?

Discuss how a stock split works if a company has 100,000 common shares outstanding that are trading at $100 per share.

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?

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

What is a stock's book value?

What is the term for buying several different kinds of investments rather than just one?

The US 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 Itfor Business

The Role of Accountants and Accounting Information

Understanding Money and the Role of Banking

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Exam 17: Managing Business Finances

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

Before the Securities and Exchange Commission allows a firm to issue a public offering of new securities,what must be filed?

How is the risk involved in purchasing bonds affected by the bond's maturity date?

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

Which of the following is an organization of individuals coordinated to provide an institutional setting in which stock can be bought and sold?

An exchange-traded fund (ETF)is a bundle of stocks (or bonds)that are in an index that tracks the overall movement of a market.

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

What type of investment would preserve capital investment but seek capital appreciation?

Explain the difference between angel investors and venture capital.

Explain the difference between debt financing and equity financing.

More Americans are investing in the stock market through online trading.Explain the value of online trading.

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

Which of the following is indicative of a bull market?

Which of the following is a formal pledge (an IOU)obligating the issuer to pay interest periodically and repay the principal at maturity (a preset future date)to the lender?

While it's invested,money grows by earning interest.What is the cumulative growth from interest paid over given time periods referred to as?

Discuss how a stock split works if a company has 100,000 common shares outstanding that are trading at $100 per share.

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?

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

What is a stock's book value?

What is the term for buying several different kinds of investments rather than just one?

The US 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 Itfor Business

The Role of Accountants and Accounting Information

Understanding Money and the Role of Banking

Filters