Question $11$

$1$

Point

A $\_\_\_\_\_\_\_\_$ has limited liability, is a legal entity, and has the greatest potential to raise capital.

general partnership

sole proprietorship

corporation

limited partnership

Question $12$

$1$

Point

Apex Inc. issues a bond of $$1,000$ which pays interest semiannually at a coupon interest rate of $8\%.$ The maturity of the bond is $15$ years. Where should this bond be traded?

money market

capital market

forex market

commodities market

Question $13$

$1$

Point

A market that establishes correct prices for the securities that firms sell and allocates funds to their most productive uses is called a$($n$)\_\_\_\_\_\_\_\_.$

future market

forex market

weak$-$form market

efficient market

Question $14$

$1$

Point

Stocks are bought and sold in $\_\_\_\_\_\_\_\_$ markets.

debt

equity

foreign exchange

derivatives

Question $15$

$1$

Point

Investment banks are institutions that $\_\_\_\_\_\_\_\_.$

are exempted from Securities and Exchange Commission regulations

perform all activities of commercial banks and retail banks

are only limited to capital market activities

engage in trading and market making activities

Question $16$

$1$

Point

At its most basic level, the function of financial intermediaries is to $\_\_\_\_\_\_\_\_.$

track and report interest rates

move money from lenders to borrowers and back again

effect a transfer of wealth in society

report all financial transactions to the federal government

Question $17$

$1$

Point

A financial manager's investment decisions determine $\_\_\_\_\_\_\_\_.$

both the mix and the type of liabilities found on the firm's balance sheet

both the mix and the type of assets found on the firm's balance sheet

both the mix and the type of assets and liabilities found on the firm's balance sheet

both the mix and the type of short$-$term and long$-$term financing

Question $18$

$1$

Point

Which of the following is NOT an example of a financial transaction?

You use the ATM to withdraw British pounds so you can fly to London.

Your roommate lends you $$20$ and you repay it in one week.

All of the options are financial transactions.

Your parents use their credit card to pay this term's college tuition.

Question $19$

$1$

Point

Which of the following is an ADVANTAGE of a sole proprietorship?

The ease of start up

The ability to raise capital

The lack of continuity upon death of the owner

The owner's unlimited liability

Question $20$

$1$

Point

Most businesses raise money by selling their securities in a $\_\_\_\_\_\_\_\_.$

public offering

forex market

futures market

commodities market