Wall Street Test Questions with Correct Answers
How are funds allocated efficiently in a market economy - Answer-the economic unit that is will to pay the highest expected return
A corp in which you are a shareholder has just gone bankrupt - Answer-an amount that could at most equal
Sharehol...
Wall Street Test Questions
with Correct Answers
How are funds allocated efficiently in a market economy - Answer-the economic unit
that is will to pay the highest expected return
A corp in which you are a shareholder has just gone bankrupt - Answer-an amount that
could at most equal
Shareholder wealth in a firm is represented by - Answer-the market price per share of
the firms common stock
Long run objective of financial management is to - Answer-maximize the value of the
firms common stock
What are the earnings per share (EPS) - Answer-.50
A ____ would be an example of a principal while a ____ would be an example of an
agent - Answer-Shareholder, manager
The market price of a share of common stock is determined by - Answer-individuals
buying and selling the stock
The focal point of financial management in a firm is - Answer-creation of value for
shareholders
Decision function of financial management can be broken down into the decisions -
Answer-financing and investment
A companys ____ is potentially the most effective - Answer-board of directors
Sarbanes-Oxley Act - Answer-a series of cop orate scandals involving Enron
Trade between two countries - Answer-can make both countries better off
Scarcity arises because of - Answer-a finite amount of resources
In a market economy, economic activity is guided by - Answer-prices as incentives to
both buyers and sellers
Benefits from trade would NOT include - Answer-reduced competition
, Inflation is an increase in the overall level of prices - Answer-True
How are funds allocated efficiently in a market economy? - Answer-the economic unit
that is willing to pay the highest expected return receives the funds
which of the following enjoys limited liability - Answer-a corporation
michael cohn - Answer-general partnership
A corporatio in which you are a shareholder has just gone bankrupt. its liabilities are far
in excess of its assets - Answer-an amount that could at equal
3o year bond - Answer-secondary capital market
A major advantage of the corporate form of organization is - Answer-limited owner
liability
money market mutual funds - Answer-enable individiuals and small businesses to invest
indirectly
purpose of financial markets - Answer-allocate savings efficiently
which is not an example of financial intermediary - Answer-IBm
this book is mainly about - Answer-financial decisions made by corporations
finance, deals with - Answer-all of the above
the following are examples of the US bases corps except - Answer-Unilever
the following are examples of foreign based corps except - Answer-general electric
businesses can be organizing as - Answer-any of the above
A corp is owned by the - Answer-shareholders
limited liability is an important feature of - Answer-corps
corps, potentially have infinite life because - Answer-legal entity
Main disadvantage of organizing a business as a corp in the US - Answer-Double
taxation
Larger number of US corps are incorporated in - Answer-Delaware
Following are examples of real assets except - Answer-common stock
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