Question 1

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

Accepted Answer

The bank requires the borrower to mainta

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

Explain what exchange-traded funds are and how they are tracked.

Accepted Answer

As with an index mutual fund,an exchange

Question 4

What is the increase in the dollar value of an investment known as?

Accepted Answer

A)  Dividend payout 
B)  Total return 
C)  Interest yield 
D)  Capital gain 
E)  Price appreciation 
A)  Dividend payout 
B)  Total return 
C)  Interest yield 
D)  Capital gain 
E)  Price appreciation

Question 5

What type of loan is guaranteed by collateral?

Accepted Answer

A)  Unsecured loan 
B)  Venture capital loan 
C)  Angel investor loan 
D)  Secured loan 
E)  Corporate bond 
A)  Unsecured loan 
B)  Venture capital loan 
C)  Angel investor loan 
D)  Secured loan 
E)  Corporate bond

Question 6

Explain the Rule of 72.

Accepted Answer

The Rule of 72 is used to figure out how

Question 7

What is the legal document that identifies a borrower's obligation and the financial returns to lenders 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 8

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

Question 9

What is the first sale of a company's stock to the general public called?

Accepted Answer

A)  IPO 
B)  Common offering 
C)  Par value 
D)  Venture capital 
E)  Portfolio 
A)  IPO 
B)  Common offering 
C)  Par value 
D)  Venture capital 
E)  Portfolio

Question 10

Which of the following multiplies the earning capacity on an initial investment as interest payments accumulate and earn even more interest?

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 11

An investment bank operates in the secondary securities market.

Accepted Answer

A) True 
 B)False

Question 12

When is a company susceptible to a hostile takeover?

Accepted Answer

A)  When a bull market is in effect 
B)  When stock prices are high, but assets are decreasing 
C)  When stocks are low priced, but assets have high value 
D)  When the international market is in recession 
E)  When angel investors demand repayment of their venture capital 
A)  When a bull market is in effect 
B)  When stock prices are high, but assets are decreasing 
C)  When stocks are low priced, but assets have high value 
D)  When the international market is in recession 
E)  When angel investors demand repayment of their venture capital

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

What is the term for a division of stock that gives stockholders a greater number of shares but does not change each individual's proportionate share of ownership?

Accepted Answer

A)  Stock dividend 
B)  Stock split 
C)  Stock yield 
D)  Stock warrant 
E)  Stock exchange 
A)  Stock dividend 
B)  Stock split 
C)  Stock yield 
D)  Stock warrant 
E)  Stock exchange

Question 15

When an investment bank engages in underwriting,that investment bank is taking on risk in the process of launching new securities.

Accepted Answer

A) True 
 B)False

Question 16

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 17

Which of the following allows after-hours trading and protects traders' anonymity?

Accepted Answer

A)  National Association of Securities Dealers Automated Quotation (NASDAQ) 
B)  New York Stock Exchange (NYS
E)  
C)  Electronic Communication Networks (ECNs) 
D)  Standard & Poor's 500 
E)  Mutual funds 
A)  National Association of Securities Dealers Automated Quotation (NASDAQ) 
B)  New York Stock Exchange (NYS
E)  
C)  Electronic Communication Networks (ECNs) 
D)  Standard & Poor's 500 
E)  Mutual funds

Question 18

What can an angel investor offer to small businesses when the small business doesn't have enough history to get a loan from a commercial bank?

Accepted Answer

A)  A credit history 
B)  Venture capital 
C)  Stock options 
D)  Financial oversight 
E)  Bonds 
A)  A credit history 
B)  Venture capital 
C)  Stock options 
D)  Financial oversight 
E)  Bonds

Question 19

What is the term for the proportion of funds invested in each of several investment alternatives?

Accepted Answer

A)  Spreading 
B)  Shorting 
C)  Margin buying 
D)  Asset allocation 
E)  Diversification 
A)  Spreading 
B)  Shorting 
C)  Margin buying 
D)  Asset allocation 
E)  Diversification

Question 20

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

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

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

Explain what exchange-traded funds are and how they are tracked.

What is the increase in the dollar value of an investment known as?

What type of loan is guaranteed by collateral?

Explain the Rule of 72.

What is the legal document that identifies a borrower's obligation and the financial returns to lenders when issuing corporate bonds?

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

What is the first sale of a company's stock to the general public called?

Which of the following multiplies the earning capacity on an initial investment as interest payments accumulate and earn even more interest?

An investment bank operates in the secondary securities market.

When is a company susceptible to a hostile takeover?

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

What is the term for a division of stock that gives stockholders a greater number of shares but does not change each individual's proportionate share of ownership?

When an investment bank engages in underwriting,that investment bank is taking on risk in the process of launching new securities.

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?

Which of the following allows after-hours trading and protects traders' anonymity?

What can an angel investor offer to small businesses when the small business doesn't have enough history to get a loan from a commercial bank?

What is the term for the proportion of funds invested in each of several investment alternatives?

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

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

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

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

Explain what exchange-traded funds are and how they are tracked.

What is the increase in the dollar value of an investment known as?

What type of loan is guaranteed by collateral?

Explain the Rule of 72.

What is the legal document that identifies a borrower's obligation and the financial returns to lenders when issuing corporate bonds?

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

What is the first sale of a company's stock to the general public called?

Which of the following multiplies the earning capacity on an initial investment as interest payments accumulate and earn even more interest?

An investment bank operates in the secondary securities market.

When is a company susceptible to a hostile takeover?

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

What is the term for a division of stock that gives stockholders a greater number of shares but does not change each individual's proportionate share of ownership?

When an investment bank engages in underwriting,that investment bank is taking on risk in the process of launching new securities.

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?

Which of the following allows after-hours trading and protects traders' anonymity?

What can an angel investor offer to small businesses when the small business doesn't have enough history to get a loan from a commercial bank?

What is the term for the proportion of funds invested in each of several investment alternatives?

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

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