Finance Quiz Essay

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

Difficulty 16

Problem:

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

Problem:

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

Trouble 18

Question:

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...

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