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VSB 2009 Ch1&2 (FFM) Flashcards | StudBud
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VSB 2009 Ch1&2 (FFM)
VSB 2009 Ch1&2 (FFM)
13 terms
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StudBud Administration
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Chapter 1 and 2 review game
Flashcards
13 cards
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Practice quiz
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Host live
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Questions
13
Answers
1
Which of the following statements is CORRECT?
Corporations face fewer regulations than proprietorships
Ownership transfer is easier in corporation than partnership
Corporate shareholders are exposed to unlimited liability.
Partnership is more expensive to form than corporation
2
ABC operates as partnership & decides to convert into corporation. Which statements is CORRECT?
Corporation set-up is less expensive than partnership
ABC will find it more difficult to raise additional capital
Shareholders/ex-partners will be exposed to less liability
ABC will be subject to fewer regulation/required disclosures
3
Partnerships and proprietorships generally have a tax advantage over corporations.
False
True
4
IPO stands for "individual purchase order" as when an individual places an order to buy a stock
True
False
5
You sold 200 shares of Disney stock, transfer was made through a broker. This is an example of:
Money market transaction
Futures market transaction
Primary market transaction
Secondary market transaction
6
It is generally harder to transfer one's ownership interest in partnership than in corporation
False
True
7
It is generally less expensive to form a corporation than a proprietorship
False
True
8
NYSE is defined as a "primary" market as it is one of the largest/most important stock markets.
True
False
9
In most corporations, the CFO ranks under the CEO
True
False
10
Money markets are markets for?
Foreign currencies.
Short-term debt securities such as Treasury bills
Consumer automobile loans.
Common stock
11
In Dutch auction bidder indicates price & # of shares willing to buy; highest price permitting sell of all shares wins
False
True
12
When firm's shares are owned by a few individuals by firm's management- stock is closely held
True
False
13
Which of the following is an example of a capital market instrument?
Bankers acceptance
Commercial paper
US Treasury note
Preferred stock
