Question 1

Explain the difference between a sole proprietorship and a partnership.

Accepted Answer

A sole proprietorship is a fir

Question 2

Most app developers have adopted the business model of

Accepted Answer

A) charging a small fee for their apps to be downloaded. 
B) allowing their apps to be downloaded and used for free,while trying to still earn money from users. 
C) charging a between $1.99 and $2.99 for their apps to be downloaded. 
D) allowing their apps to be downloaded to one device for free,but charging a high price for the apps to be downloaded to additional devices. 
A) charging a small fee for their apps to be downloaded. 
B) allowing their apps to be downloaded and used for free,while trying to still earn money from users. 
C) charging a between $1.99 and $2.99 for their apps to be downloaded. 
D) allowing their apps to be downloaded to one device for free,but charging a high price for the apps to be downloaded to additional devices.

Question 3

Direct finance refers to the flow of funds from savers to borrowers through financial markets.

Accepted Answer

A) True 
 B)False

Question 4

Alt-A mortgages are

Accepted Answer

A) mortgages issued to borrowers who fail to document that their incomes are high enough to afford their mortgages. 
B) mortgages which are bundled together by financial institutions and sold to investors. 
C) mortgages issued to borrowers with flawed credit histories. 
D) government-backed mortgages issued by Fannie Mae and Freddie Mac. 
A) mortgages issued to borrowers who fail to document that their incomes are high enough to afford their mortgages. 
B) mortgages which are bundled together by financial institutions and sold to investors. 
C) mortgages issued to borrowers with flawed credit histories. 
D) government-backed mortgages issued by Fannie Mae and Freddie Mac.

Question 5

Arturo wants to start a business where he is the chief executive officer and the company does issue stock.The type of business Arturo wants to start is a

Accepted Answer

A) sole proprietorship. 
B) partnership. 
C) corporation. 
D) Any of the above could be correct. 
A) sole proprietorship. 
B) partnership. 
C) corporation. 
D) Any of the above could be correct.

Question 6

Dividends are

Accepted Answer

A) the interest payments on bonds. 
B) the principal payments on bonds. 
C) fixed payments to bondholders. 
D) payments by a corporation to its shareholders. 
A) the interest payments on bonds. 
B) the principal payments on bonds. 
C) fixed payments to bondholders. 
D) payments by a corporation to its shareholders.

Question 7

By the percentage of each type of business organization in the United States,rank sole proprietorships,partnerships,and corporations in terms of the number of firms,revenue,and profits.

Accepted Answer

In terms of the number of firms,sole pro

Question 8

A bond is a financial security that represents a promise to repay

Accepted Answer

A) a yearly interest payment only. 
B) a yearly principal payment only. 
C) a yearly interest payment and a principal payment. 
D) Bonds are investments that do not promise any kind of repayment. 
A) a yearly interest payment only. 
B) a yearly principal payment only. 
C) a yearly interest payment and a principal payment. 
D) Bonds are investments that do not promise any kind of repayment.

Question 9

In the early 1800s,many state legislatures began to pass general incorporation laws,which

Accepted Answer

A) allowed firms to more easily be organized as corporations. 
B) made it harder for firms to organize as corporations. 
C) granted sole proprietorships and partnerships limited personal liability. 
D) allowed sole proprietorships and partnerships to issue stock. 
A) allowed firms to more easily be organized as corporations. 
B) made it harder for firms to organize as corporations. 
C) granted sole proprietorships and partnerships limited personal liability. 
D) allowed sole proprietorships and partnerships to issue stock.

Question 10

When an investor buys a corporate bond,the face value of the bond is

Accepted Answer

A) a measure of ownership in the corporation. 
B) a loan to the corporation. 
C) the coupon rate of the bond. 
D) a dividend payment on the bond. 
A) a measure of ownership in the corporation. 
B) a loan to the corporation. 
C) the coupon rate of the bond. 
D) a dividend payment on the bond.

Question 11

If you own a $1,000 face value bond with one year remaining to maturity and a 3 percent coupon rate and new bonds are paying 9 percent,what is the most you can get for your old bond?

Accepted Answer

A) $917.43 
B) $944.95 
C) $970.87 
D) $1,000 
A) $917.43 
B) $944.95 
C) $970.87 
D) $1,000

Question 12

Julie is the chief executive officer (CEO)of the Black Gold Corporation and is also on the company's board of directors.Julie is considered ________ of the corporation.

Accepted Answer

A) a stockholder 
B) an inside director 
C) an owner 
D) an outside director 
A) a stockholder 
B) an inside director 
C) an owner 
D) an outside director

Question 13

If Walmart issues $250 million in new stock to finance the renovation of their retail stores,this is an example of

Accepted Answer

A) a bond market transaction. 
B) indirect finance. 
C) a stock market transaction. 
D) direct finance. 
A) a bond market transaction. 
B) indirect finance. 
C) a stock market transaction. 
D) direct finance.

Question 14

Generally with bond ratings,the ________ the rating,the lower the interest rate an investor will receive and the ________ the risk that the issuer of the bond will default.

Accepted Answer

A) higher;higher 
B) higher;lower 
C) lower;higher 
D) lower;lower 
A) higher;higher 
B) higher;lower 
C) lower;higher 
D) lower;lower

Question 15

Small savers who only have enough money to buy a few individual financial assets can use ________ to diversify.

Accepted Answer

A) one company's stock 
B) one company's bonds 
C) Treasury securities 
D) mutual funds 
A) one company's stock 
B) one company's bonds 
C) Treasury securities 
D) mutual funds

Question 16

When an investor buys a corporate bond,the ________ is a loan to the corporation.

Accepted Answer

A) interest on the bond 
B) principal of the bond 
C) bond's dividend payments 
D) coupon payment 
A) interest on the bond 
B) principal of the bond 
C) bond's dividend payments 
D) coupon payment

Question 17

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?

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 18

If the personal assets of the owners can be claimed if the business is bankrupt,the owners are said to have

Accepted Answer

A) unlimited liability. 
B) a corporation type of business. 
C) limited liability. 
D) separation of ownership from control. 
A) unlimited liability. 
B) a corporation type of business. 
C) limited liability. 
D) separation of ownership from control.

Question 19

If Urban Outfitters borrows $25 million from a bank to finance the construction of a new store,this is an example of

Accepted Answer

A) a stock market transaction. 
B) direct finance. 
C) a bond market transaction. 
D) indirect finance. 
A) a stock market transaction. 
B) direct finance. 
C) a bond market transaction. 
D) indirect finance.

Question 20

It is the role of ________ to transfer funds from savers to borrowers.

Accepted Answer

A) the Federal Reserve 
B) the federal government 
C) an economy's financial system 
D) corporate governance 
A) the Federal Reserve 
B) the federal government 
C) an economy's financial system 
D) corporate governance

Explain the difference between a sole proprietorship and a partnership.

Most app developers have adopted the business model of

Direct finance refers to the flow of funds from savers to borrowers through financial markets.

Alt-A mortgages are

Arturo wants to start a business where he is the chief executive officer and the company does issue stock.The type of business Arturo wants to start is a

Dividends are

By the percentage of each type of business organization in the United States,rank sole proprietorships,partnerships,and corporations in terms of the number of firms,revenue,and profits.

A bond is a financial security that represents a promise to repay

In the early 1800s,many state legislatures began to pass general incorporation laws,which

When an investor buys a corporate bond,the face value of the bond is

If you own a $1,000 face value bond with one year remaining to maturity and a 3 percent coupon rate and new bonds are paying 9 percent,what is the most you can get for your old bond?

Julie is the chief executive officer (CEO)of the Black Gold Corporation and is also on the company's board of directors.Julie is considered ________ of the corporation.

If Walmart issues $250 million in new stock to finance the renovation of their retail stores,this is an example of

Generally with bond ratings,the the rating,the lower the interest rate an investor will receive and the the risk that the issuer of the bond will default.

Small savers who only have enough money to buy a few individual financial assets can use ________ to diversify.

When an investor buys a corporate bond,the ________ is a loan to the corporation.

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?

If the personal assets of the owners can be claimed if the business is bankrupt,the owners are said to have

If Urban Outfitters borrows $25 million from a bank to finance the construction of a new store,this is an example of

It is the role of ________ to transfer funds from savers to borrowers.

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

Explain the difference between a sole proprietorship and a partnership.

Most app developers have adopted the business model of

Direct finance refers to the flow of funds from savers to borrowers through financial markets.

Alt-A mortgages are

Arturo wants to start a business where he is the chief executive officer and the company does issue stock.The type of business Arturo wants to start is a

Dividends are

By the percentage of each type of business organization in the United States,rank sole proprietorships,partnerships,and corporations in terms of the number of firms,revenue,and profits.

A bond is a financial security that represents a promise to repay

In the early 1800s,many state legislatures began to pass general incorporation laws,which

When an investor buys a corporate bond,the face value of the bond is

If you own a $1,000 face value bond with one year remaining to maturity and a 3 percent coupon rate and new bonds are paying 9 percent,what is the most you can get for your old bond?

Julie is the chief executive officer (CEO)of the Black Gold Corporation and is also on the company's board of directors.Julie is considered ________ of the corporation.

If Walmart issues $250 million in new stock to finance the renovation of their retail stores,this is an example of

Generally with bond ratings,the ________ the rating,the lower the interest rate an investor will receive and the ________ the risk that the issuer of the bond will default.

Small savers who only have enough money to buy a few individual financial assets can use ________ to diversify.

When an investor buys a corporate bond,the ________ is a loan to the corporation.

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?

If the personal assets of the owners can be claimed if the business is bankrupt,the owners are said to have

If Urban Outfitters borrows $25 million from a bank to finance the construction of a new store,this is an example of

It is the role of ________ to transfer funds from savers to borrowers.

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

Generally with bond ratings,the the rating,the lower the interest rate an investor will receive and the the risk that the issuer of the bond will default.