Question $3$

$1$

Point

Managers basic, overriding goal$($s$)$ is to create $\_\_\_\_\_\_\_$ for shareholders.

all of the above

profit

dividends

wealth

Question $4$

$1$

Point

An efficient financial system:

implements the monetary policy of governments by influencing interest rates

All of the above

directs savings to the most efficient users

encourages savings

Question $5$

$1$

Point

Profit maximization as the goal of the firm is not ideal because $\_\_\_\_\_\_\_\_\_\_\_\_.$

profits are only accounting measures

profits today are less desirable than profits earned in future years

cash flows are more representative financial strengths

profit maximization does not consider risks

Question $6$

$1$

Point

The sale of "new" securities$,$ where the financial asset is being traded for the very first time, is said to take place in the $\_\_\_\_\_\_\_\_$ market.

secondary

capital

primary

money

Question $7$

$1$

Point

A $\_\_\_\_\_\_\_\_$ is a business that is jointly owned by two or more individuals.

sub$-$chapter s corporation

sole proprietorship

partnership

corporation

Question $8$

$1$

Point

Which of the following is NOT an ADVANTAGE of a sole proprietorship?

Quick decision making

All are advantages of a sole proprietorship.

The owner receiving all the after$-$tax profit

Limited liability

Question $9$

$1$

Point

The $\_\_\_\_\_\_\_\_\_\_\_\_\_$ is created by a financial relationship between suppliers and demanders of short$-$term funds.

Central banks

Automotive shows

Housing markets

Money markets

Question $10$

$1$

Point

$\_\_\_\_\_\_\_\_$ is the typical title of the corporate executive charged with determining the best repayment structure for borrowed funds to ensure timely repayment and sufficient cash for daily operations.

Chief Financial Officer $($CFO$)$

Chief Operating Officer $($COO$)$

Chief Executive Officer $($CEO$)$

Chairman