1 . В The liability of sole entrepreneurs is limited for the amount of their investment inside the company. В FALSE
four. В A main disadvantage of partnerships is that they include " double taxation" of profits. В FALSE
6. В Capital budgeting decisions are used to determine how to make the cash necessary for investments. В FALSE
37. В A table of directors is elected as a representative from the corporation's: В A. В top management.
W. В stakeholders.
C. В shareholders.
M. В customers.
twenty two. В Shareholders everyone should be open higher short-term profits even though they damage long-term profits. В FALSE
38. В The legal " life" of any corporation is: В
A. В coincident recover of their CEO.
M. В equal towards the life of the Board of Directors.
C. В permanent, provided that shareholders no longer change.
D. В permanent, in spite of current possession.
26. В The stockholders within a sole proprietorship are represented by: В A. В the owner in the firm.
B. В the general partner of the firm.
C. В the Table of Administrators of the firm.
D. В no one; only proprietorships have no stockholders.
ninety six. В Which with the following happen to be real possessions?
My spouse and i. A obvious.
II. A share of stock given by Bank of New York.
III. A great time furnace in a steel-making factory.
IV. A mortgage loan applied for to help purchase a new home.
V. After a successful marketing campaign, potential customers' belief that FedEx is going to deliver packages promptly and reliably. NI. An IOU (" I owe you" ) from the brother-in-law. В
A. В I only
N. В III simply
C. В I and 3 only
D. В I, 3 & V
Chapter a couple of:
31. В Corporate auto financing comes finally from: В
A. В savings by homes and overseas investors.
N. В cash generated from the firm's operations.
C. В the economic markets and intermediaries.
Deb. В the concern of stocks in the organization.
35. В When corporations need to raise money through share issues, that they rely upon the: В A. В primary industry.
B. В secondary market.
C. В over-the-counter marketplace.
D. В centralized NASDAQ exchange.
46. В Short-term financing decisions commonly occur in the: В A. В primary markets.
B. В secondary market segments.
C. В capital markets.
D. В money markets.
48. В You can buy sterling silver in the: В
A. В capital markets.
W. В foreign-exchange market segments.
C. В commodities markets.
Deb. В option markets.
50. В A financial intermediary provides financing for: В
A. В individuals.
B. В companies.
C. В other organizations.
M. В All of the.
52. В Compared to buying stocks and bonds directly, precisely what are the advantages of investing in a common fund? В A. В Efficient diversification and professional management.
B. В Investment returns are certainly not taxed till withdrawn from your fund. C. В You can find additional stocks in the pay for or cash-out at any time. D. В All of those.
72. В Liquidity is important to a mutual fund because: В
A. В a fund that may be more liquid will attract even more investors.
N. В the fund's shareholders may wish to redeem their particular shares whenever you want. C. В the fund's managers need liquidity to transact actively.
G. В the fund needs to deliver payouts to its shareholders and managers periodically. Section 5
Quiz 5-2 Future Principles (LO1)
Compute the future value of a hundred buck cash flow pertaining to the following combos of savings and instances. (Round the answers to 2 fraccion places. Leave out the " $" sign in your response. ) | a. l = 8%, t = 10 years. FV = money b. r = 8%, t sama dengan 20 years. FV = bucks c. ur = 4%, t = 10 years. FV = dollar d. l = 4%, t sama dengan 20 years. FV = $ | Difficulty 17
Quiz 5-5 Present Principles (LO2)
You will need $700 in 5 years. If you earn 5% interest on your money, how much will you be needing to invest today in order to reach your savings goal? (Round your answer to 2 quebrado places. ) | В
PV В bucks
Quiz 5-6 Calculating Interest Rate (LO4)
Find the eye rate implied by the subsequent combinations of present and future values:
Present Value | Years | Future Benefit
$400 | eleven | $684
183 | some | 249
300 | 7 | 300
(Leave no cells blank - be certain to enter " 0" wherever needed. Input your...