corporate finance Questions and Correct Answers & Latest Update
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Module
Corporate Finance
Institution
Corporate Finance
Which of the following statements is CORRECT?
A. If you purchase 100 shares of Disney stock from your brother-in-law, this is an example
of a primary market transaction.
B. As they are generally defined, money market transactions involve debt securities with
maturities of less than one year.
...
corporate finance Questions and Correct
Answers & Latest Updated
Which of the following statements is CORRECT?
A. If you purchase 100 shares of Disney stock from your brother-in-law, this is an example
of a primary market transaction.
B. As they are generally defined, money market transactions involve debt securities with
maturities of less than one year.
C. Only institutions, and not individuals, can engage in derivative market transactions.
D. The NYSE is an example of an over-the-counter market.
E. If Disney issues additional shares of common stock through an investment banker, this
would be a secondary market transaction
o :## B
You recently sold 200 shares of Disney stock, and the transfer was made through a broker.
This is an example of:
A. An over-the-counter market transaction.
B. A secondary market transaction.
C. A primary market transaction.
D. A futures market transaction.
Master01: DO NOT COPY AND PASTE!! August 25, 2024 Latest Update
,2|Page: 2024/2025 Grade A+
E. A money market transaction
o :## B
Money markets are markets for
A. Common stocks.
B. Long-term bonds.
C. Foreign currencies.
D. Short-term debt securities such as Treasury bills and commercial paper.
E. Consumer automobile loans
o :## D
Which of the following statements is CORRECT?
A. One of the advantages of a corporation from a social standpoint is that every stockholder
has equal voting rights, i.e., "one person, one vote."
B. It is easier to transfer one's ownership interest in a partnership than in a corporation.
C. Corporations of all types are subject to the corporate income tax.
D. One of the disadvantages of a proprietorship is that the proprietor is exposed to
unlimited liability.
Master01: DO NOT COPY AND PASTE!! August 25, 2024 Latest Update
, 3|Page: 2024/2025 Grade A+
E. One of the advantages of the corporate form of organization is that it avoids double
taxation
o :## D
Which of the following statements is CORRECT?
A. Hedge funds are legal in the United States, but they are not permitted to operate in
Europe or Asia.
B. Hedge funds are legal in Europe and Asia, but they are not permitted to operate in the
United States.
C. Hedge funds have more in common with investment banks than with any other type of
financial institution.
D. Hedge funds are not as highly regulated as most other types of financial institutions. The
justification for this light regulation is that only "sophisticated" investors (i.e., those with
high net worths and high incomes) are permitted to invest in these funds, and these
investors supposedly can do any necessary "due diligence" on their own rather than have it
done by the SEC or some other regulator.
E. Hedge funds have more in common with commercial banks than with any other type of
financial institution
o :## D
Master01: DO NOT COPY AND PASTE!! August 25, 2024 Latest Update
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