10/16/24, 10:18 AM FNAN 522 Midterm/FNAN 522 MIDTERM Exam 1_FNAN522 Exam I MIDTERM Questions and Answers./2024/2025 latest u…
FNAN 522 Midterm/FNAN 522 MIDTERM Exam
1_FNAN522 Exam I MIDTERM Questions and
Answers./2024/2025 latest update
Terms in this set (30)
A company needs to A. Money market.
raise cash to cover its B. Capital Market
operating expenses. The C. Derivative market
company will only need D. All of the above
the funds for a short Answer: A MONEY MARKET
period of time. What
financial market is the
most appropriate for the
company to use to raise
money (that is, likely the
lowest cost and best-
matched maturity)?
a. To protect investors from corporate abuse.
What is the primary goal
b. To help maintain a primary bull market.
of the Sarbanes-Oxley
c. To protect corporate executives from frivolous
act according to the
shareholder lawsuits.
Module 1 video-"The
d. To prevent a secular bear market.
Goal of Financial
ANSWER: a. To protect investors from corporate
Management"?
abuse.
, 10/16/24, 10:18 AM FNAN 522 Midterm/FNAN 522 MIDTERM Exam 1_FNAN522 Exam I MIDTERM Questions and Answers./2024/2025 latest u…
a. The owner is personally liable for the business's
debt and obligations.
b. There is more than one answer.
Which of the following is c. A sole proprietorship typically elects board
an accurate characteristic members for staggered terms.
of a sole proprietorship? d. The owner must file for a separate tax return for
the business.
ANSWER: a. The owner is personally liable for the
business's debt and obligations.
a. Parties associates with the organization have
different risk preferences.
b. The people who make the day-to-day decisions
Which of the following is
are not the owners.
a source of agency costs
c. All of these answers.
in an organization?
d. The managers of the organization have different
objectives than the other shareholders.
ANSWER: c. All of these answers.
a. All of these answers.
b. Several major institutions failed or were subject to
Which of the following government takeover.
occurred during the c. A currency crisis, with investors transferring their
financial crisis of 2007- wealth to countries with stronger currencies.
2008? d. Significant declines in consumer wealth and
prolonged unemployment.
ANSWER: A. All of these answers.
Which of the following a. simple transference
terms describes the b. double taxation
protection of personal c. articles of incorporation
assets stemming from the d. limited liability
corporate structure? ANSWER: D. Limited Liability
What will $250,000 grow $474,574.64
to be in 11 years if it is
invested today in an
account with an annual
interest rate of 6%?
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