ashworth college BU340 Online Exam 1 latest 2016 march

Part 1 of 1 – Lesson 1 Questions 100.0/ 100.0 Points

Question 1 of 20
5.0/ 5.0 Points
__________ is the area of finance concerned with activities
like borrowing funds to finance projects such as plant expansions or new
product launches.
A. Working capital
management
B. International
finance
C. Investments
D. Corporate finance

Question 2 of 20
5.0/ 5.0 Points
At its most basic level, the function of financial
intermediaries is to:
A. track and report
interest rates.
B. move money from
lenders to borrowers and back again.
C. report all
financial transactions to the federal government.
D. effect a transfer
of wealth in society.

Question 3 of 20
5.0/ 5.0 Points
Capital structure is best defined by which of the following
questions?
A. How will we fund
our product and service choices?
B. What business are
we in?
C. How will we
manage our day-to-day financial needs?
D. What is our
firm’s best choice for corporate governance?

Question 4 of 20
5.0/ 5.0 Points
Which of the following is an advantage of a sole
proprietorship?
A. The owner’s
unlimited liability
B. The lack of
continuity upon death of the owner
C. The ease of
start-up
D. The ability to
raise capital

Question 5 of 20
5.0/ 5.0 Points
“Concern with the multinational elements of financial
activities” best describes which of the four main areas of finance?
A. Investments
B. International
finance
C. Corporate finance

D. Financial
institutions and markets

Question 6 of 20
5.0/ 5.0 Points
The process of planning, evaluating, selecting, and managing
the long-term operating projects of the company is termed:
A. capital
budgeting.
B. capital
structure.
C. accounts
receivable management.
D. working capital
management.

Question 7 of 20
5.0/ 5.0 Points
Which of the following compensation packages is likely to
work best for executive managers?
A. Piece-meal
B. Stock options
C. Quarterly bonuses

D. Commission

Question 8 of 20
5.0/ 5.0 Points
Financial assets that will mature within a year are bought
and sold in the __________ market.
A. debt
B. capital
C. stock
D. money

Question 9 of 20
5.0/ 5.0 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.
A. primary
B. money
C. secondary
D. capital

Question 10 of 20
5.0/ 5.0 Points
__________ is a major disadvantage of the corporate form of
business.
A. Double taxation
B. Unlimited
liability
C. Lack of ability
to raise capital
D. Transfer of
ownership

Question 11 of 20
5.0/ 5.0 Points
__________ is the area of finance concerned with the
activities of buying and selling financial assets such as stocks and bonds.
A. Investments
B. Corporate finance

C. International
finance
D. Financial markets
and institutions

Question 12 of 20
5.0/ 5.0 Points
In agency theory, the owners of the business are referred to
as __________, and the managers are referred to as __________.
A. bondholders,
principals
B. stockholders,
bondholders
C. agents,
principals
D. principals,
agents

Question 13 of 20
5.0/ 5.0 Points
A __________ is a business that is jointly owned by two or
more individuals.
A. partnership
B. sole
proprietorship
C. subchapter S
corporation
D. corporation

Question 14 of 20
5.0/ 5.0 Points
The form of business organization in the United States that
has the greatest amount of capital is:
A. the sole
proprietorship.
B. the partnership.
C. the subchapter
corporation.
D. the publicly
traded corporation.

Question 15 of 20
5.0/ 5.0 Points
Currencies are bought and sold in __________ markets.
A. equity
B. debt
C. derivatives
D. foreign exchange

Question 16 of 20
5.0/ 5.0 Points
Options are bought and sold in __________ markets.
A. equity
B. debt
C. derivatives
D. foreign exchange

Question 17 of 20
5.0/ 5.0 Points
Capital budgeting is best defined by which of the following
questions?
A. How will we fund
our product and service choices?
B. What business are
we in?
C. How will we
manage our day-to-day financial needs?
D. What is our
firm’s best choice for corporate governance?

Question 18 of 20
5.0/ 5.0 Points
Of the following, which is NOT one of the four main areas of
finance?
A. International
Finance
B. Corporate Finance

C. Investments
D. All are considered
main areas of finance.

Question 19 of 20
5.0/ 5.0 Points
The problem of motivating one party to act in the best
interest of another party is known as the:
A. leadership
directive.
B. management
priority.
C. principal-agent
problem.
D. sigma six
structure.

Question 20 of 20
5.0/ 5.0 Points
__________ addresses the question of what business we should
be in over the long run.
A. Capital budgeting

B. Capital structure

C. Working capital
management
D. Accounts
receivable management