Circle the letter for each question / statement for the correct choice as your answer.

9. Which one of the following is considered as a speculative credit ratings under S & P rating system?

a. CCC +

b. BBB -

c. BB +

d. Caa

e. Baa 1

10. Which one of the following statements is correct?

a. There is an upper limit for owning an equity for an investor

b. The person or firm owning a stock / share is called the creditor

c. Disadvantage of equity is double taxation but there is no direct bankruptcy risk

d. In a bankruptcy, the creditors are paid after the equity holders are paid.

e. Debt is an ownership interest in the firm and creditors have voting power

11. Which one of the following financial institutions is considered a financial regulator?

a. New York Stock Exchange

b. NASDAQ

c. Security Exchange Commission

d. Bank of America

e. Goldman Sachs

12. Which one of the following risks is the most fundamentally serious and extremely important risk that would affect an investor /entrepreneur in a business / financial environment?

a. Market risk

b. Liquidity risk

c. Political / legal risk

d. Interest rate risk

e. Default risk