Question
1Which of the following is true? Group of answer choices aStaged funding allows a venture capitalist to exit quickly if the business does not perform
1Which of the following is true?
Group of answer choices
aStaged funding allows a venture capitalist to exit quickly if the business does not perform to expectations.
bSyndication cannot reduce risk
cVenture capitalists are long term investors
d If a venture capitalists invests in your new business, then you dont need to use your own money to invest in your business
2A call option for the purchase of Sobey Corporation common shares has an exercise price of $10 per share. Currently Sobey Corporation common shares are trading for $10 per share. Therefore, the call option would be described as being near the money.
Group of answer choices
True
False
3.Which of the following is not a function of money?
Group of answer choices
It is generally thought to be exchangeable for goods and services.
It can be used to provide a means to evaluate the relative price of goods and services.
It decreases in value during times of inflation.
It commands purchasing power in the future.
4.Which of the following statements is false?
Group of answer choices
It is hard for Canadian companies to issue securities in foreign markets
Over the counter markets are fully computerized
Most equity transactions take place on a stock exchange
Bonds are traded through dealer markets
5.
Financial intermediaries are entities that facilitate the working of markets and help provide direct intermediation but do not change the nature of the transaction; also called brokers.
Group of answer choices
True
False
Flag question: Question 11
Question 111 pts
Best-effort offerings make up greater than 10% of all underwriting agreements.
Group of answer choices
True
False
Which of the following would not be considered a general principle of finance?
Group of answer choices
Ethical behaviour is necessary to run a long-term successful business.
The bottom line is more important than anything else when running a business.
When buying stocks on the market, the prices generally incorporate all information available with respect to that stock.
Interest rates paid on bonds by large established companies will be less than interest rates paid by smaller corporations.
Cash is king.
Cash received today is more valuable than the same amount of cash received one year from now.
Different groups who have claims upon a a company can have conflicting objectives.
Which of the following statements is false?
Group of answer choices
Startup businesses are not a very important factor in economic growth.
Venture capitalists are normally prepared to invest the initial seed money to a new company so a prototype can be developed
Angel investors invest their own money into startup businesses at the very early stages in small deals
The bootstrapping period is normally only 1-2 years
Flag question: Question 18
Question 181 pts
Which of the following statements is false?
Group of answer choices
Finance is the study of how and under what terms savings (money) are allocated between lenders and borrowers.
Lenders and borrowers are people and institutions that either have excess money to invest or need money for some reason.
Finance is distinct from economics in that finance is not just about how resources are allocated; it also examines under what terms and through what channels the allocations are made.
Finance and economics are the same and people can use these terms interchangeably.
What are the three courses of action that are possible with any option?
Group of answer choices
The option can be exercised, it can be returned, or the option can expire.
The option can expire, can be exercised, or can be sold on the secondary market.
The option can be exercised, the option can be returned, or it can be sold on the secondary market.
The option could expire worthless, can be exercised or can expire worth something.
Credit crunch is a situation in which financial intermediaries have to raise the cost of their loans by a significant amount due to their own inability to raise financing on reasonable terms.
Group of answer choices
True
False
Which of the following would be considered an equity investment?
Group of answer choices
Class A common shares of Bell Canada Inc.
10% yield bonds of Tim Hortons Inc.
3% mortgage on an office building
Mortgage-backed securities
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