T/F - Sole Proprietorship is the most T
common form of business ownership
T/F - A Sole Proprietor may have to sell T
personal assets to pay off company debts
T/F - Sole Proprietorship has unlimited T
liability
When you the words Capital Market in a Long Term
MCQ question should you think Long Term
or Short Term?
T/F - Does this describe a Capital Market - A T
financial relationship created by institutions
and arrangements that allows suppliers and
demanders of long-term funds to make
transactions
T/F - Does this describe a Capital Market - A F
market that allocates funds to their most
productive uses as result of competition
among wealthy investors
T/F - Does this describe a Money Market - A T
financial relationship created by institutions
and arrangements that allows suppliers and
demanders of short-term funds to make
transactions
1/5
, 8/29/24, 5:27 PM
If all things being equal, in which of the
following forms of business would the
possibility of an agency problem be the
greatest? 1) A sole proprietorship 2) A foreign
corporation that is publicly traded 3) A
foreign corp with concentrated ownership
(relatively few owners) 4) A partnership in
which all partners share management and
decision making responsibilities equally
Which problem does this describe - Agency problem
managers not acting in the interest of the
shareholders
Is the agency problem more likely to occur Public company
in a public company or partnership or sole
proprietorship?
Is the agency problem more likely to occur Public company
in a public company or public company with
few shareholders?
Which of the following should be the 4) Maximize the current share price value of existing shares
primary goal of a financial manager? 1)
Maximize steady growth in sales and profit
2) Maximize company efficiency and
minimize operational costs 3) Maximize the
current dividend per share of existing shares
4) Maximize the current share price value of
existing shares
FV or PV - Theo purchases new furniture by PV
borrowing R15000 using the stores credit
plan.
Exam Question - "Theo purchases new The fact that they are looking for interest means that this is a Amortization question.
furniture by borrowing R15000 using the Write Amort next to the question.
stores credit plan. The credit plan charges
18% interest, compounded monthly, and the
loan is to be repaid within 3 years. How
much of the first payment goes towards
interest?" - What type of question is and
what do you write on the exam paper next
to the question as a reminder.
Exam Question - "Theo purchases new PMT=542.29 Amort Interest = 225
furniture by borrowing R15000 using the
stores credit plan. The credit plan charges
18% interest, compounded monthly, and the
loan is to be repaid within 3 years. How
much of the first payment goes towards
interest?" - Solve for PMT and then solve for
Amort interest
2/5
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