FIN 3200

Which one of the following parties can sell shares of ABC stock in the primary market?

ABC company

Which of the following is not a basic area of finance as described by the text?

Accounting

Which of the following statements is false? Acorns is a creative crowdfunding app, allowing smaller investors to join together to fund design ventures. Apps allow small investors to participate in the stock market much more easily. Robo-advisors provide investment advice based on mathematical rules or algorithms. Budgeting apps allow people to keep track of income, monthly payments, expenditures, and more, right on a mobile phone. Stock trading apps allow investors to trade stocks commission-free.

Acorns is a creative crowdfunding app, allowing smaller investors to join together to fund design ventures.

The potential conflict of interest between a firm's owners and its managers is referred to as which type of conflict?

Agency

Which one of the following applies to a general partnership?

Any one of the partners can be held solely liable for all of the partnership's debt.

Any one of the partners can be held solely liable for all of the partnership's debt.

the total debts of the partnership, even if he or she was unaware of those debts.

An employee has a claim on the cash flows of Westlake Machines. This claim is defined as a claim by one of the firm's:

stakeholders.

Which one of the following situations is most apt to create an agency conflict?

Basing management bonuses on the length of employment

Which one of the following occupations best fits into the corporate area of finance?

Chief financial officer

Jordan and Carmen created a firm that is a separate legal entity and will share ownership of that firm on a 75/25 basis. Which type of entity did they create if they have no personal liability for the firm's debts?

Corporation

Which one of the following is a capital structure decision?

Establishing the preferred debt-equity level

Which one of the following is a working capital decision?

How much cash should the firm keep in reserve?

Which one of the following is an advantage of being a limited partner? Losses limited to capital invested Active market for ownership interest Unlimited profits without risk of incurring a loss Control over the daily operations of the firm Nontaxable share of any profits

Losses limited to capital invested

Which one of the following statements is correct?

Nasdaq has more listed stocks than does the NYSE.

Which one of the following statements correctly applies to a sole proprietorship?

Obtaining additional equity is dependent on the owner's personal finances.

What is the primary purpose of the NYSE Which one of the following statements is correct?

The primary purpose of the NYSE is to match buyers with sellers.

Probably the least effective means of aligning management goals with shareholder interests is:

automatically increasing management salaries on an annual basis.

Security dealers

buy and sell from their own inventory

Uptown Markets is financed with 45 percent debt and 55 percent equity. This mixture of debt and equity is referred to as the firm's:

capital structure: The mixture of debt and equity maintained by a firm.

The goal of financial management is to increase the

current market value per share.

Corporate shareholders:

have the ability to change the corporation's bylaws.

If you accept a job as a domestic security analyst for a brokerage firm, you are most likely working in which one of the following financial areas?

investments

A corporation:

is a legal entity separate from its owners.

A private placement is most apt to involve

life insurance company

The primary goal of financial management is most associated with increasing the:

market value of the firm.

A limited liability company (LLC):

prefers its profits be taxed as personal income to its owners.

Limited liability companies are primarily designed to:

provide limited liability while avoiding double taxation.