Finance 302 Comprehensive Final

Financial markets can be classified by which of the following?

All of the above can be classified as financial markets.

_____________ is a major disadvantage of the corporate form of business

Double taxation

The organized financial intermediaries and the forums that promote the cycle of money is a good definition of which of the following main areas of finance?

Financial institutions and markets

Which of the following is NOT an example of ordinary annuity cash flows?

Insurance payments due at the start of the period (ordinary annuity = due at end or period) (annuity due = due at beginning of period)

A _______________ has limited liability, is a legal entity, and has the greatest potential to raise capital.

corporation

At its most basic level, the function of financial intermediaries is to

move money from lenders to borrowers and back again

The sale of "new" securities,where the financial asset is being traded for the very first time, is said to take place in the ________ market

primary

In agency theory, the owners of the business are referred to as ________, and the managers are referred to as ________.

principals, agents