bus 25 final

Which of the following federal government agencies has responsibility for regulating the various stock exchanges in the U.S.? A. SEC B. NASDAQ C. FCC D. ICC

A. SEC

Which of the following is a primary area of concern for financial managers? A. Undercapitalization B. Inability to recruit qualified workers C. Poor advertising messages D. Inadequate market control

A. Undercapitalization

Mort is seriously considering a major expansion in the size of his funeral home. The money spent on this type of project would be classified as a(n): A. capital expenditure. B. equity expenditure. C. off-budget expense. D. depreciation charge.

A. capital expendiutre

Which of the following securities provides the owner the right to vote for the corporate board of directors? A. Common stock B. Bonds C. Preferred stock D. Callable bonds

A. common stock

Which of the following would be classified as an institutional investor? A. Pension funds B. Federal Reserve banks C. Stock exchanges D. Commodity brokers

A. pension funds

Penny is impressed with contemporary high tech companies that have listed their stock on an electronic telecommunications network of securities dealers who trade the stock. She is referring to firms such as Microsoft [MSFT], Google [GOOG], and Apple [AAPL]. Penny ideally would like her company's stock listed on the ____________. A. AMEX B. NASDAQ C. OTC D. NYSE Euronext

B. NASDAQ

Penny is concerned about the interest rate risk if the company decides to issue bonds. Penny would like protection from interest rate fluctuation. Therefore, the bond issue's features should include a(n): A. equity proposition. B. call provision. C. convertibility clause. D. collateral agreement.

B. call provision

A ________ group consists of a small group of people who meet under the direction of a discussion leader to discuss opinions about an organization, its products, or other issues. A. concept B. focus C. peer D. consumer interest

B. focus

When investors purchase ________ stock, they receive a priority claim in the payment of dividends, as well as assets, if the business is liquidated. However, these investors do not have voting rights. A. common B. preferred C. secured D. debenture

B. preferred

__________ consists of information that has already been researched by others and is published in journals or books, or has been made available online. A. Primary data B. Secondary data C. Pre - coded information D. Technical data

B. secondary data

The trading of previously issued securities from one investor to another takes place in the: A. primary market. B. secondary market. C. initial offerings market. D. corporate trading market.

B. secondary market.

Mort Tishian feels it's necessary to predict revenues, costs, and expenses on a six month basis. "Its the only way you get an idea of what to expect" explains mort. In order to obtain these predictions, mort need to develop a(n): A. cash basis accounting system. B. short-term forecast. C. capital budget. D. econometric model.

B. short-term forecast

Cool People Publications focuses their marketing efforts on reaching African - American teenage girls. The firm believes that they are positioned to profitably serve this group of consumers. Cool People utilizes the strategy of: A. narrowcasting. B. target marketing. C. primary marketing. D. focus group selectio n.

B. target marketing

In order to assist in revenue realization, a(n) ________ allocates resources throughout the firm. A. forecast B. balance sheet C. budget D. income statement

C. budget

To raise the funds for the major improvements needed at the funeral home, Mort has talked to two investors about incorporating his business and selling them shares of stock in the company. Mort is considering the use of: A. debt financing. B. commercial paper. C. equity financing. D. revolving credit.

C. equity financing.

A(n) __________ refers to the first public offering of a corporation's stock. A. primary market offer (PMO) B. initial securities proposal (ISP) C. initial public offering (IPO) D. primary public sale (PPS)

C. initial public offering (IPO)

The significant increase in consumer demand following World War II marked the beginning of the: A. production era. B. selling era. C. marketing concept era. D. customer relationship era.

C. marketing concept era.

One funding source under consideration is the issuance of $150 million worth of corporate bonds. A financial advisor predicted that in order for the fast growing company to attract investors, it would have to put up collateral to back - up the bond issue. The ty pe of bond the financial advisor suggests is: A. debenture bonds. B. asset bonds. C. secured bonds. D. preferred bonds.

C. secured bonds.

Mort approached the chief lending officer at First Virginia Bank about obtaining a $75,000 loan. The banker said she would approve the loan provided that the funeral home's building was pledged as collateral. The banker was offering a(n): A. trade credit agreement. B. institutional loan. C. secured loan. D. revolving credit agreement

C. secured loan

7. After seeing Mort's advertisement: "You Aren't Gettin' Any Younger! Start Planning for Heaven Today!" a ___________ firm decided the aging population was a good investment. Although they typically look at start - ups with great promise , they approached Mort with $6 million dollars for a major three - city expansion that included six new funeral homes, a crema tory, and mausoleum. After researching the idea, Mort agreed to give - up 50% ownership of the business in order to secure these funds. His last thoughts as he began to sign the papers were: "Now, I'll be able to compete with the big guys!" A. retained earnings B. indentured C. venture capital D. leveraged buyout

C. venture capital

If Pirate Recording elects to offer an IPO (Initial Public Offering), it will involve preparing full financial disclosure with the ___________. The firm is advised to solicit the services of an investment banker/underwriter, who will analyze the market and determine the best price for the new issue of Pirate Recording stock. The offering will then be sold on the __ __________. A. Internal Revenue Service; secondary market B. Fair Trade Commission; primary market C. Federal Trade Commission; secondary market D. Securities and Exchange Commission; primary market

D. Securities and Exchange Commission; primary market

After much searching, Mort located an old banking friend of his father's. The banker offered mort up to $25,000 in unsecured funds, which Mort's firm could borrow any time within a year, as long as the bank has the money available. Mort was offered a(n): A. revolving credit agreement. B. asset guarantee pledge. C. pledging agreement. D. line of credit.

D. line of credit.

A __________ forecast predicts the revenues, costs, and expenses a firm will incur for a period longer than one year. A. cash flow B. short-term C. capital expenditures D. long-term

D. long-term

The __________ is based on three elements: (1) a customer orientation, (2) a service orientation, and (3) a profit orientation. A. mercantile philosophy B. hierarchy of needs C. relationship approach to marketing D. marketing concept

D. marketing concept

An organization whose members can buy and sell securities for companies and investors is known as a: A. public securities dealer. B. securities facilitator. C. transfer medium. D. stock exchange.

D. stock exchange.