QUESTION 1

1. The Global Financial Crisis (GFC) occurred during the years:

   		2007 - 2008.
   		1999 - 2000.
   		1792 - 1854.
   		1914 - 1916.

2. A dividend reinvestment scheme is:

   		the amount that must be paid per share to buy a new issue.
   		an offering of new issues of shares or bonds.
   		a scheme in which shareholders are allowed to reinvest dividends into shares.
   		the date on which a company ceases to effect transfers of its shares.

3. Venture capital is useful to entrepreneurs because:

   		New businesses can easily get funding from banks.
   		Venture capitalists are bored and have lots of money to play with.
   		Venture capitalists don't want shares in return for their investment.
   		New businesses have limited access to funding.

4. Which of the following statements is not correct? An ordinary shareholder in a troubled corporation:

   		receives the proceeds from the sale of the assets after the creditors and the preference shareholders are paid, if the company goes bankrupt.
   		records a decrease in the value of his/her assets.
   		may lose his/her house.
   		does not receive dividends.

5. Which of the following characteristics is not associated with ordinary shares?

   		cumulative dividends.
   		vote by proxy.
   		limited liability.
   		residual claim on income and assets.

6. Ordinary shares represent basic ownership in a company. Ordinary shareholders enjoy:

   		unlimited liability.
   		guaranteed annual dividends.
   		a place on the company's board of directors.
   		limited liability.

7. Mortgages are long-term loans secured by:

   		real estate.
   		your pet.
   		your car.
   		they are unsecured.

8. Venture capitalists are another name for shareholders.

   True

   False

9. As a shareholder of a company, I am guaranteed an annual dividend payment.

   True

   False

10. The Global Financial Crisis (GFC) is another name for the Great Depression.

    True

    False