8) The following factors affect managerial behavior A) managerial compensation packages B) direct intervention by sharcholders C) the threat of firing D) all of the above o This type of risk is equal to what investors expect when they have limited information A) Commission Risk B) True Risk C) Perceived Risk D) Wealth Risk 10, bond agreements that limit the use of 10) Bondholders attempe to protect themselves by includingin actions A) Prices B) Covenants C) Assets D) Advertising Dinas t rnfe owing could bew for a capital rmansfer between savers and borrowen? 1 ) Which of the A) Direct Tra B) Investment Banks C) Financial Intermediaries D) All of the above 12) Suppliers of capital are individuals and institutions with A) no rate of return. B) excess funds D) a need for cash. C) many liabilities. 13) Well-functioning financial markets promote A) poor performance. C) economic growth. B) not investing in projects. D) limiting the flow of capital. 14) A derivative security is A) derived from the price of another security. 14._ B) not used to reduce risk. C) without consequence on returns D) based on changes in accounts payable. 15) Financial institutions that underwrite, distribute new securities and finance are known as A) Commercial Banks C) Pension Funds B) Hedge Funds D) Investment Banks. 15. 16) When new shares of stock are being issued, this is a A) secondary market transaction.B) primary market transaction. additional market transaction. D) cash market transaction. 6. 7) Stock quotes can be found in print sources only in print and online sources B) in online sources only D) never in print or online sources. 7 All of the following statements about an initial public offering are true EXCEPT ccurs when a company issues stock in the public market for the first time. not subject to regulations and reporting requirements. n be considered "going public" to raise capital from outside investors. ows founders opportunity to cash out some of their shares. 18