Select the right answer!

6-________ act as facilitators in a market, and they bring together buyers and sellers for a transaction.

a.Advisers

b.Dealers

c.Comptrollers

d.Brokers

7-________ is the market for short-term, low-risk, highly liquid, homogeneous securities.

a.The capital market

b.The money market

c.The stock market

d.The financial market

8-_______ is a short-term, unsecured security issued by corporations and financial institutions to meet short-term financing needs such as inventory and receivables.

a.Commercial paper

b.A negotiable certificate of deposit

c.A Treasury bill

d.A Treasury note

9-________ investments tend to have ________ risk and ________ expected returns.

a.Short-term; greater; smaller

b.Short-term; less; greater

c.Long-term; greater; greater

d.Long-term; less; smaller

10-________ value is what a consumer pays for a product. ________ value is what a consumer is willing to pay for a product.

a.Economic; Market

b.Economic; Book

c.Market; Economic

d.Book; Market

11-An important advantage of a sole proprietorship is that ________.

a.it is easier to raise capital under such a structure than under other organizational forms

b.it allows for an unlimited life of the business

c.it is relatively easy to create

d. Both a and b are correct.

12-A shareholder is someone who ________.

a.profits from the favourable results of a company

b.is an ex-employee of a company

c.follows the company for an investment firm

d.sits on the audit committee of a firm

13-Effective corporate governance includes all of the following EXCEPT ________.

a.fairness

b.accountability

c.objectivity

d.higher share price

14-A stakeholder is someone who ________.

a.is hired to do a specific job

b.answers to a board of directors

c.has a vested interest in a companys success

d.is required to read a companys annual report

15-An important component of a strong board of directors (BOD) is having members who are ________.

a.new to the industry and without preconceptions

b.culturally diverse and experienced in the industry

c.former employees of the company

d.able to write a strong corporate press release

16-Which of the following is NOT a reason why a company needs good corporate governance?

a.to avoid mismanagement of the company

b.to increase the companys overall accountability and prevent significant organizational problems

c.to enable the company to raise capital more efficiently and mitigate financial and operational risk to stakeholders

d.to analyze the companys operations and systems of internal control in order to detect and prevent various forms of fraud and other accounting irregularities

17-Who ultimately runs the company operations for a large corporation?

a.shareholders

b.stakeholders

c.board of directors

d.external auditors

18-One of the ways in which companies attempt to mitigate short-term managerial focus is by offering managers ________.

a.increased paid sick leave

b.comprehensive health insurance

c.stock options

d.increased vacation time

19-Which of the following is NOT one of the roles of an audit committee?

a. ensuring that appropriate resources are used in company operations

b. launching special investigations of employees, company practices, or procedures

c. reviewing systems of internal control.

d. reviewing the work of the internal audit

20-Which of the following is a major issue addressed in corporate governance?

a.expanding operations internationally

b.improving banking relations

c.improving profits for shareholders

d.ethics and its implementation

21-Agency problems are essential ________.

a.problems with the IRS

b.fraudulent business activities

c.nepotism

d.conflicts of interest

22-The term ESG, when used in the context of corporate governance, refers to which of the following?

a.earnings, social, and general profit

b.environmental, social, and goals

c.earnings, shareholders, and governance

d.environmental, social, and governance

23-Which of the following is the best method to ensure that shareholders are well-informed of corporate policies and financial results?

a.conducting well-organized shareholder meetings and conference calls with the investment community

b.self-evaluation and training for members of the board of directors

c.ensuring cultural diversity and public speaking eloquence of the senior management team

d.hiring a prestigious independent public accounting firm

24-Investor relations have substantially more ________.

a.interpretations regarding its effective implementation and use than other managerial and financial disciplines

b.regulatory obligations than standard public relations because of government-mandated financial and legal requirements

c.documented historical cases of corporate failure than other managerial and financial disciplines

d.personnel within a company dedicated to its function compared to other corporate departments

25-An increase in the price of a basket of goods is known as ______.

a.inflation

b.rising GDP

c.falling GDP

d.a change in quantity demanded

26-To be considered unemployed, an individual must be ______.

a.out of work

b.actively seeking a job

c.able to work

d.All of the above

27-When measuring GDP, purchases are divided into the four broad categories of ______.

a.demand, inflation, interest rates, and government spending

b.interest rates, inflation, unemployment, and investment

c.imports, exports, loanable funds, and government spending

d.consumer spending, investment, government spending, and net exports

28-A business cycle is measured from ______.

a.one peak to the next trough

b.the time of the highest unemployment rate to the time of the lowest unemployment rate

c.one trough to the next trough

d.one trough to the next peak

29-The interest rate is the ______.

a.increase in the price of a market basket of goods

b.the rental cost of money

c.the measure of economic activity

d.speed at which the money supply is increasing

30-If the nominal interest rate is 9% and the rate of inflation is 2%, the real rate of interest is approximately ______.

a.11%

b.29 %

c.18%

d.7%

31- A foreign exchange rate is ______.

a.the rate of inflation in a foreign country

b.the price of one currency in terms of another currency

c.the rate of unemployment in one country compared to the rate in another country

d.the amount of imports a country has relative to its exports