Question 1

The decline in new business startups

Accepted Answer

A) is not concentrated in one industry. 
B) is concentrated primarily in high-tech industries. 
C) is concentrated primarily in health care industries. 
D) is concentrated primarily in public service industries. 
A) is not concentrated in one industry. 
B) is concentrated primarily in high-tech industries. 
C) is concentrated primarily in health care industries. 
D) is concentrated primarily in public service industries.

Question 2

How much is a bond that pays $80 in coupon payments for 4 years and $1,000 at the end of the fourth year worth today if the interest rate is 6%?

Accepted Answer

A) $855.46 
B) $1,045.56 
C) $1,069.30 
D) $1,140.00 
A) $855.46 
B) $1,045.56 
C) $1,069.30 
D) $1,140.00

Question 3

On a balance sheet,stockholders' equity is listed as an asset.

Accepted Answer

A) True 
 B)False

Question 4

Tying salaries of top managers to the profits of the firm is a way to reduce the effect of the principal-agent problem.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is one of the most widely followed stock indexes in the United States?

Accepted Answer

A) the Dow Jones Industrial Average 
B) the Chicago Mercantile Exchange 
C) the Fortune 500 
D) the Securities and Exchange Commission 
A) the Dow Jones Industrial Average 
B) the Chicago Mercantile Exchange 
C) the Fortune 500 
D) the Securities and Exchange Commission

Question 6

Georgia's great uncle gave her a $5,000 savings bond as a wedding gift.The bond pays $5,000 at maturity,which is in 10 years.If the interest rate is 4%,the bond has a present value of $ 3,377.82

Accepted Answer

A) True 
 B)False

Question 7

Shontae wants to start a pet hotel and is thinking of setting it up as a partnership with her sister Victoria.What are the advantages and disadvantages she will face by setting up the business as a partnership as opposed to a sole proprietorship or a corporation?

Accepted Answer

As a partnership,Shontae has the advanta

Question 8

Public companies ________ and private companies ________.

Accepted Answer

A) sell stock in financial markets; also sell stock in financial markets 
B) sell stock in financial markets; do not sell stock in financial markets 
C) do not sell stock in financial markets; also do not sell stock in financial markets 
D) do not sell stock in financial markets; sell stock in financial markets 
A) sell stock in financial markets; also sell stock in financial markets 
B) sell stock in financial markets; do not sell stock in financial markets 
C) do not sell stock in financial markets; also do not sell stock in financial markets 
D) do not sell stock in financial markets; sell stock in financial markets

Question 9

Both stocks and bonds have maturity dates.

Accepted Answer

A) True 
 B)False

Question 10

Raising funds through ________ is called indirect finance.

Accepted Answer

A) issuing stock 
B) issuing bonds 
C) financial intermediaries 
D) retaining earnings 
A) issuing stock 
B) issuing bonds 
C) financial intermediaries 
D) retaining earnings

Question 11

Explain the difference between a sole proprietorship and a partnership.

Accepted Answer

A sole proprietorship is a fir

Question 12

Garrison is the chief financial officer (CFO)of the Colorado Drone manufacturing company and is also on the company's board of directors.Garrison is considered ________ of the company.

Accepted Answer

A) a bondholder 
B) an inside director 
C) a financier 
D) an outside director 
A) a bondholder 
B) an inside director 
C) a financier 
D) an outside director

Question 13

When Snap sells newly issued shares of stock this is an example of

Accepted Answer

A) direct finance in a primary market. 
B) direct finance in a secondary market. 
C) indirect finance in a primary market. 
D) indirect finance in a secondary market. 
A) direct finance in a primary market. 
B) direct finance in a secondary market. 
C) indirect finance in a primary market. 
D) indirect finance in a secondary market.

Question 14

Walmart wants to raise $250 million to finance the renovation of their retail stores,and the company wishes to raise the funds through indirect finance.Which of the following methods could it use?

Accepted Answer

A) It could issue $250 million in stock. 
B) It could sell $250 million in bonds. 
C) It could borrow $250 million from a bank. 
D) It could choose either A or B. 
A) It could issue $250 million in stock. 
B) It could sell $250 million in bonds. 
C) It could borrow $250 million from a bank. 
D) It could choose either A or B.

Question 15

The possible double taxation of income is a disadvantage for

Accepted Answer

A) sole proprietorships and partnerships. 
B) partnerships and corporations. 
C) sole proprietorships and corporations 
D) corporations. 
A) sole proprietorships and partnerships. 
B) partnerships and corporations. 
C) sole proprietorships and corporations 
D) corporations.

Question 16

The difference between a firm's revenue and its operating expenses is the firm's operating income.

Accepted Answer

A) True 
 B)False

Question 17

Would a business be expected to survive in the long run if it earned a positive accounting profit but a negative economic profit? Explain.

Accepted Answer

Regardless of its accounting profit,a fi

Question 18

In the United States,________ percent of all firms are sole proprietorships.

Accepted Answer

A) 4 
B) 14 
C) 72 
D) 82 
A) 4 
B) 14 
C) 72 
D) 82

Question 19

If a stock's dividend is expected to grow at a constant rate of 6 percent in the future and it has just paid a dividend of $2.50 a share,and you have an alternative investment of equal risk that will earn a 8 percent rate of return,what would you be willing to pay per share for this stock today?

Accepted Answer

A) $2.86 
B) $33.13 
C) $132.50 
D) $200.00 
A) $2.86 
B) $33.13 
C) $132.50 
D) $200.00

Question 20

A partnership is limited to how many owners?

Accepted Answer

A) 2 
B) 5 
C) less than 10 
D) There is no limit to the number of owners. 
A) 2 
B) 5 
C) less than 10 
D) There is no limit to the number of owners.

The decline in new business startups

How much is a bond that pays $80 in coupon payments for 4 years and $1,000 at the end of the fourth year worth today if the interest rate is 6%?

On a balance sheet,stockholders' equity is listed as an asset.

Tying salaries of top managers to the profits of the firm is a way to reduce the effect of the principal-agent problem.

Which of the following is one of the most widely followed stock indexes in the United States?

Georgia's great uncle gave her a $5,000 savings bond as a wedding gift.The bond pays $5,000 at maturity,which is in 10 years.If the interest rate is 4%,the bond has a present value of $ 3,377.82

Shontae wants to start a pet hotel and is thinking of setting it up as a partnership with her sister Victoria.What are the advantages and disadvantages she will face by setting up the business as a partnership as opposed to a sole proprietorship or a corporation?

Public companies and private companies .

Both stocks and bonds have maturity dates.

Raising funds through ________ is called indirect finance.

Explain the difference between a sole proprietorship and a partnership.

Garrison is the chief financial officer (CFO)of the Colorado Drone manufacturing company and is also on the company's board of directors.Garrison is considered ________ of the company.

When Snap sells newly issued shares of stock this is an example of

Walmart wants to raise $250 million to finance the renovation of their retail stores,and the company wishes to raise the funds through indirect finance.Which of the following methods could it use?

The possible double taxation of income is a disadvantage for

The difference between a firm's revenue and its operating expenses is the firm's operating income.

Would a business be expected to survive in the long run if it earned a positive accounting profit but a negative economic profit? Explain.

In the United States,________ percent of all firms are sole proprietorships.

If a stock's dividend is expected to grow at a constant rate of 6 percent in the future and it has just paid a dividend of $2.50 a share,and you have an alternative investment of equal risk that will earn a 8 percent rate of return,what would you be willing to pay per share for this stock today?

A partnership is limited to how many owners?

Economics: Foundations and Models

Trade-Offs, Comparative Advantage, and the Market System

Where Prices Come From: The Interaction of Demand and Supply

Economic Efficiency, Government Price Setting, and Taxes

The Economics of Health Care

Comparative Advantage and the Gains From International Trade

GDP: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, the Financial System, and Business Cycles

Long-Run Economic Growth: Sources and Policies

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money,Banks,and the Federal Reserve System

Monetary Policy

Fiscal Policy

Inflation, Unemployment, and Federal Reserve Policy

Macroeconomics in an Open Economy

The International Financial System

Filters

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

The decline in new business startups

How much is a bond that pays $80 in coupon payments for 4 years and $1,000 at the end of the fourth year worth today if the interest rate is 6%?

On a balance sheet,stockholders' equity is listed as an asset.

Tying salaries of top managers to the profits of the firm is a way to reduce the effect of the principal-agent problem.

Which of the following is one of the most widely followed stock indexes in the United States?

Georgia's great uncle gave her a $5,000 savings bond as a wedding gift.The bond pays $5,000 at maturity,which is in 10 years.If the interest rate is 4%,the bond has a present value of $ 3,377.82

Shontae wants to start a pet hotel and is thinking of setting it up as a partnership with her sister Victoria.What are the advantages and disadvantages she will face by setting up the business as a partnership as opposed to a sole proprietorship or a corporation?

Public companies ________ and private companies ________.

Both stocks and bonds have maturity dates.

Raising funds through ________ is called indirect finance.

Explain the difference between a sole proprietorship and a partnership.

Garrison is the chief financial officer (CFO)of the Colorado Drone manufacturing company and is also on the company's board of directors.Garrison is considered ________ of the company.

When Snap sells newly issued shares of stock this is an example of

Walmart wants to raise $250 million to finance the renovation of their retail stores,and the company wishes to raise the funds through indirect finance.Which of the following methods could it use?

The possible double taxation of income is a disadvantage for

The difference between a firm's revenue and its operating expenses is the firm's operating income.

Would a business be expected to survive in the long run if it earned a positive accounting profit but a negative economic profit? Explain.

In the United States,________ percent of all firms are sole proprietorships.

If a stock's dividend is expected to grow at a constant rate of 6 percent in the future and it has just paid a dividend of $2.50 a share,and you have an alternative investment of equal risk that will earn a 8 percent rate of return,what would you be willing to pay per share for this stock today?

A partnership is limited to how many owners?

Economics: Foundations and Models

Trade-Offs, Comparative Advantage, and the Market System

Where Prices Come From: The Interaction of Demand and Supply

Economic Efficiency, Government Price Setting, and Taxes

The Economics of Health Care

Comparative Advantage and the Gains From International Trade

GDP: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, the Financial System, and Business Cycles

Long-Run Economic Growth: Sources and Policies

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money,Banks,and the Federal Reserve System

Monetary Policy

Fiscal Policy

Inflation, Unemployment, and Federal Reserve Policy

Macroeconomics in an Open Economy

The International Financial System

Filters

Public companies and private companies .