NAF Financial Services Review

Question 1

With T-accounts, balances are displayed on what side of an asset account?

Accepted Answer

Debit

Question 2

On the NYSE, what animal represents a "rising market?"

Accepted Answer

Bull

Question 3

In the BLC, maintaining market share, efficient operations, & controlling costs are part of?

Accepted Answer

Maturity

Question 4

Stockbrokers who negotiate and arrange stock sales are compensated (paid) with:

Accepted Answer

Commission

Question 5

The money a business receives when it sells a product or service is known as what?

Accepted Answer

Revenue

Question 6

What financial institution is owned by the members whom they lend money to?

Accepted Answer

Credit Unions

Question 7

What is the Least regulated of all business forms?

Accepted Answer

Sole proprietorship

Question 8

The equation for the Cash Flow Cycle equals:

Accepted Answer

DIO + DSO -DPO

Question 9

Besides a sole proprietorship, what type of business has all profits taxed as personal income ?

Accepted Answer

Partnership

Question 10

If a company ONLY had 10 shares of stock to sell and you bought 1, how much would you own?

Accepted Answer

10%

Question 11

Which of these is NOT tangible?

Accepted Answer

Services

Question 12

What does Days Sales Outstanding (DSO) represent?

Accepted Answer

How long it takes to convert credit sales to cash

Question 13

Market indexes measure how well a segment of the market is doing. What is a non-example?

Accepted Answer

Wholesalers

Question 14

Disadvantages of corporations include all except the following:

Accepted Answer

Can sell stock shares to public in order to raise capital

Question 15

In the start-up phase of the Business Life Cycle, before a prototype is created you must first:

Accepted Answer

Research & Develop

Question 16

Over time, which security is known to outperform the rest?

Accepted Answer

Stocks

Question 17

To the law, a corporation is treated like an individual in all of the following ways except:

Accepted Answer

It can have unlimited liability.

Question 18

One way to mitigate (lessen) financial risks for a business is to do which of the following?

Accepted Answer

Pay a premium (buy) for Insurance

Question 19

One of the main differences between a corporation and a non-profit business is that...

Accepted Answer

Corporations goal is to make profits, unlike non-profits

Question 20

What does NOT affects stock prices?

Accepted Answer

Types of benefits employees receive

Questions 20