1. Agency problem is the conflict between?

a. employees and the employer b. managers and their subordinates c. customers and the sales people d. managers and owners

2. Which of the following is NOT a source of finance?

a. public issues of shares b. right issue of shares c. dividend payments d. retained earnings

3. On March 1, 2021, you bought 700 shares of ABC Ltd. company at the prices of 23.456 AED per share. The company paid a dividend of 2 AED per share on March 27, 2021. On April 15, 2021, you sold all the shares at the price of 22.754 AED per share. Overall, how much was your profit/loss on this investment?

a. Profit of 1400 AED b. Loss of 491.4 AED c. Loss of 908.6 AED d. Profit of 908.6 AED

4. Which of the following can be considered as the owners of a company?

a. Bondholders b. Shareholders c. Banks d. Creditors

5. Which of the following is the main advantage of debt as a source of finance?

a. Tax-shield b. Interest payments c. Credit rating d. Loan amortization