Question 1 5 / 5 points
Which of the following is an advantage of a sole proprietorship?
Question options:
The owner's unlimited liability
The lack of continuity upon death of the owner
The ease of start-up
The ability to raise capital
Question 2 5 / 5 points
Stocks are bought and sold in __________ markets.
Question options:
equity
debt
derivatives
foreign exchange
Question 3 5 / 5 points
The common objective of borrowing and lending is to:
Question options:
make all parties better off.
gain a profit at the other's expense.
make a firm or individual appear more liquid than is really the case.
thwart regulatory authority.
Question 4 5 / 5 points
__________ are the forums where buyers and sellers of financial assets and commodities meet.
Question options:
Housing markets
Federal Reserve banks
Financial markets
Automotive shows
Question 5 5 / 5 points
Financial assets that will mature within a year are bought and sold in the __________ market.
Question options:
debt
capital
stock
money
Question 6 5 / 5 points
The set of financial activities that support the OPERATIONS of a business is best described by which main area of finance?
Question options:
Corporate finance
Investments
Financial institutions and markets
International finance
Question 7 5 / 5 points
At its most basic level, the function of financial intermediaries is to:
Question options:
track and report interest rates.
move money from lenders to borrowers and back again.
report all financial transactions to the federal government.
effect a transfer of wealth in society.
Question 8 5 / 5 points
__________ addresses the question of how to handle our day-to-day business needs.
Question options:
Capital budgeting
Capital structure
Working capital management
Accounts receivable management
Question 9 5 / 5 points
__________ is a major disadvantage of the corporate form of business.
Question options:
Double taxation
Unlimited liability
Lack of ability to raise capital
Transfer of ownership
Question 10 5 / 5 points
In agency theory, the owners of the business are referred to as __________, and the managers are referred to as __________.
Question options:
bondholders, principals
stockholders, bondholders
agents, principals
principals, agents
Question 11 5 / 5 points
Options are bought and sold in __________ markets.
Question options:
equity
debt
derivatives
foreign exchange
Question 12 5 / 5 points
Of the following, which is NOT one of the four main areas of finance?
Question options:
International Finance
Corporate Finance
Investments
All are considered main areas of finance.
Question 13 5 / 5 points
The problem of motivating one party to act in the best interest of another party is known as the:
Question options:
leadership directive.
management priority.
principal-agent problem.
sigma six structure.
Question 14 5 / 5 points
The means by which a company is financed refers to the firm's ________.
Question options:
capital budgeting
capital structure
accounts receivable management
working capital management
Question 15 5 / 5 points
Currencies are bought and sold in __________ markets.
Question options:
equity
debt
derivatives
foreign exchange
Question 16 5 / 5 points
__________ addresses the question of what business we should be in over the long run.
Question options:
Capital budgeting
Capital structure
Working capital management
Accounts receivable management
Question 17 5 / 5 points
The sale of "new" securities, where the financial asset is being traded for the very first time, is said to take place in the __________ market.
Question options:
primary
money
secondary
capital
Question 18 5 / 5 points
__________ is the area of finance concerned with activities like borrowing funds to finance projects such as plant expansions or new product launches.
Question options:
Working capital management
International finance
Investments
Corporate finance
Question 19 5 / 5 points
A __________ is a business that is owned entirely by an individual.
Question options:
sole proprietorship
partnership
subchapter S corporation
corporation
Question 20 5 / 5 points
__________ is the area of finance concerned with the activities of buying and selling financial assets such as stocks and bonds.
Question options:
Investments
Corporate finance
International finance
Financial markets and institutions
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