FIN 534 Quiz 1

Question 1

Which of the following statements is CORRECT?

Question 2

Which of the following statements is CORRECT?

Question 3

Which of the following statements is CORRECT?

Question 4

Which of the following statements is CORRECT?

Question 5

Which of the following statements is CORRECT?

Question 6

The primary operating goal of a publicly-owned firm interested in serving its stockholders should be to

Question 7

Which of the following statements is CORRECT?

Question 8

With which of the following statements would most people in business agree?

Question 9

Which of the following statements is CORRECT?

Question 10

Which of the following could explain why a business might choose to operate as a corporation rather than as a sole proprietorship or a partnership?

Question 11

You recently sold to your brother 200 shares of Disney stock, and the transfer was made through a broker, and the trade occurred on the NYSE. This is an example of:

Question 12

Which of the following factors would be most likely to lead to an increase in interest rates in the economy?

Question 13

You recently sold 100 shares of your new company, XYZ Corporation, to your brother at a family reunion. At the reunion your brother gave you a check for the stock and you gave your brother the stock certificates. Which of the following statements best describes this transaction?

Question 14

Which of the following statements is CORRECT?

Question 15

Jane Doe, who has substantial personal wealth and income, is considering the possibility of starting a new business in the chemical waste management field. She will be the sole owner, and she has enough funds to finance the operation. The business will have a relatively high degree of risk, and it is expected that the firm will incur losses for the first few years. However, the prospects for growth and positive future income look good, and Jane plans to have the firm pay out all of its income as dividends to her once it is well established. Which of the legal forms of business organization would probably best suit her needs?