I'm lost. Any help with any of these questions would be very much appreciated

Fin 3090 HW1 1. Name: ___Joshua Lambert_________________ Which of the following statements is CORRECT? a. Sole proprietorships are subject to more regulations than corporations. b. In any partnership, every partner has the same rights, privileges, and liability exposure as every other partner. c. Corporations of all types are subject to the corporate income tax. d. Sole proprietorships and partnerships generally have a tax advantage over corporations. ANSWER: D 2. Chuck Jones wants limited liability and single taxation for his small business. What type of business offers those advantages? a. b. c. d. 3. C Corporations Limited Liability Companies General Partnership Sole Proprietorship ANSWER: B The top financial person in a corporation usually holds the title of __________. a. b. c. d. CFO IPO NPV TVM ANSWER: A 4. The idea that corporations have a responsibility to all stakeholders including general society is called ______________. a. Shareholder Wealth Maximization b. Corporate Social Responsibility c. The 5 Cs d. Principal Agency Relations ANSWER: B 5. Which of the following statements is CORRECT? a. Covenants can be included in credit agreements, but these will do nothing to protect bondholders from conflicts of interest between them and the firm's managers and stockholders. b. Shareholders generally want managers to reduce risk so that they won't lose money. c. Compensating managers with stock options can help reduce conflicts of interest between stockholders and managers, but if the options are all exercisable on a specific date in the near future, this can motivate managers to deceive stockholders. d. Conflicts would not exist if the lead agency, the Security and Exchange Commission, were abolished. ANSWER: C 6. Which of the following actions would be likely to encourage a firm's managers to make decisions that are in the best interest of shareholders? a. The percentage of executive compensation that comes the form of cash is increased and the percentage from than long-term stock options is reduced. b. The state legislature passes a law that makes it more difficult to successfully complete a hostile takeover. c. The percentage of the firm's stock that is held by institutional investors such as mutual funds, pension funds, and hedge funds rather than by small individual investors falls from 40% to 10%. d. The firm's board of directors consists primarily of outsiders instead of firm management. ANSWER: D 7. The Stock Price of a firm is determined by all of the following except ____________. a. The size of the company b. The amount of future cash flows c. The timing of cash flows d. The riskiness of cash flows ANSWER: A 8. Which of the following statements would most people in business agree with? a. Businesses have to do things that are against the public interest in order to be profitable. b. A corporation's short-run profits will almost always increase if the firm takes actions that the government has determined are in the best interests of the nation. b. Firms and government agencies almost always agree with one another regarding the restrictions that should placed on hiring and firing employees. d. Although people's moral characters are probably developed before they get into a business school, it is still useful for business schools to cover ethics, if only to give students an idea about the adverse consequences of unethical behavior to themselves, their firms, and the nation. ANSWER: D 9. Which of the following statements is CORRECT? a. The ability of firms in competitive industries to engage voluntarily in socially beneficial but costly projects is constrained by competition and the need to attract capital. b. Any action that would maximize a firm's stock price must be consistent with the maximization of social welfare. c. In a competitive industry, if one firm is \"socially conscious\" and takes costly actions designed to improve social welfare, but other firms do not, then most investors will flock to the socially conscious firms, thus enhancing their ability to attract capital. Eventually, these firms must dominate the industry. d. All of the above are correct ANSWER: A 10. Which of the following laws was passed after the financial crises of 2007-2009 and focused on the behavior of large banks? a. Bush-Cheney. b. Dodd-Frank c. Gramm-Leach d. Sarbanes-Oxley ANSWER: B 11. Which of the following statements is CORRECT? a. a. While the distinctions are becoming blurred, investment banks generally specialize in lending money, whereas commercial banks generally help companies raise capital from other parties. b. The NYSE operates as a dealer market whereas Nasdaq is an example of an auction market. c. Money market funds usually invest their money in common stocks. d. Secondary markets are where assets are traded between investors. ANSWER: D 12. Which of the following statements is CORRECT? a. Hedge funds are not as highly regulated as most other types of financial institutions because only \"qualified\" investors are permitted to invest in these funds b. Hedge funds have more in common with investment banks than with any other type of financial institution. c. Hedge funds are legal in Europe and Asia, but they are not permitted to operate in the United States. d. Hedge funds tend to be very safe investments designed to make sure that investors never lose money. ANSWER: A 13. Which of the following statements is CORRECT? a. The term \"IPO\" stand for Introductory Price Offered, and it is the price at which shares of a new company are offered to the public. b. IPO prices are generally established by the market, and buyers of the new stock must pay the price that prevails at the close of trading on the day the stock is offered to the public. c. It is possible that the price set in an IPO is so low that the company doesn't raise as much money as they could have. In that case, the company is said to have \"left money on the table.\" d. All of these statements are correct ANSWER: C 14. You recently sold 200 shares of Disney stock, and the transfer was made through a broker. This is an example of: a. A money market transaction. b. A primary market transaction. c. A secondary market transaction. d. A futures market transaction. ANSWER: C 15. Which of the following statements is CORRECT? a. NYSE tends to focus on small companies and technology companies while the NASDAQ has larger manufacturing, retail, and financial corporations. b. The process of selling bonds that are backed by mortgages, auto loans, or other kinds of debt is called securitization c. If an investor sells shares of stock through a broker, then it would be a primary market transaction. d. Capital market transactions involve only the purchase and sale of equity securities. ANSWER: B 16. Which of the following statements is CORRECT? a. The Dow Jones Industrial Average is a composite of 500 different stocks that are meant to represent the overall economy. b. Dealers make money by buying and selling stock for different prices called the Bid-Ask spread. c. If General Electric were to issue new stock this year it would be considered an IPO d. All of the Above are Correct ANSWER: B 17. Which of the following statements is CORRECT? a. If a market is strong-form efficient, this implies that the returns on bonds and stocks should be identical. b. If a market is weak-form efficient, this implies that above-average returns can best be achieved by focusing on past movement of stock prices. c. If your uncle earned a higher return on his portfolio over a 10-year period than the return on the overall stock market, this would prove that the stock market is not strong form efficient. d. If a market is semistrong-form efficient, this implies that analyzing publicly available data will not help you 'beat the market' because such information is already reflected in stock prices. ANSWER: D 18. Most studies of stock market efficiency suggest that the stock market is highly efficient in the weakform and reasonably efficient in the semistrong-form, but not strong-form efficient. Assuming these findings are correct, which of the following statements is CORRECT? a. Information you read in The Wall Street Journal can be used to select stocks that are likely to produce above-average rates of return. b. You have been tracking a stock's price over the past 6 months, and you note that this particular stock has tended to rise sharply immediately after it has fallen for three days. You can use this information to devise a trading strategy that will help you beat the market. c. If you apply financial analysis properly, you can use information provided in companies' annual reports to earn above-average returns. d. If you possess insider information, you can use this information to earn above-average returns. ANSWER: D 19. Which of the following statements is correct? a. When a company wants to go public, they must file with the Securities and Exchange Commission. b. Commercial Banks help to guide companies through the IPO process. c. Venture Capital companies can only invest in public companies d. Companies have a fixed number of shares outstanding, so shares sold to the public were previously owned by the firm's original owners ANSWER: A 20. Which of the following statements is correct? a. Companies can go from being privately held to publicly traded in a leveraged buyout b. A financial intermediary is a corporation that takes funds from savers and then provides those funds to those who need capital. A bank that takes in demand deposits and then uses that money to make long-term mortgage loans is one example of a financial intermediary. c. The NYSE is defined as a \"primary\" market because it is one of the largest and most important stock markets in the world. d. If you decide to buy 100 shares of Google, then this would be a primary market transaction. ANSWER: B Answers: 1.d 2.b 3.a 4.b 5.c 6.d 7.a 8.d 9.a 10.b 11.d 12.a 13.c 14.c 15.b 16.b 17.d 18.d 19.a 20.b