Questions

As you develop self-understanding, the things you learn about yourself will help you to understand

others. A positive result of this would be that you are able to

A. do what others want you to do. C. get along well with others.

B. get what you want from others. D. help others to become mature.

86. Employees who have supervisory responsibilities for part or all of the business work in

A. business information technology. C. securities and investments.

B. corporate/general management. D. merchandising.

87. What is one of the main reasons for sending an interview follow-up letter?

A. To submit personal information C. To show your continued interest

B. To explain your qualifications D. To ask supplemental questions

88. Which of the following statements about working in the financial-services industry is false:

A. Financial services professionals can be found in all kinds of companies, from large corporations

to sole proprietorships.

B. Someone who works in financial services is limited to working at an investment firm, a bank, or

an insurance company.

C. Financial services professionals can expect to earn higher-than-average salaries.

D. The financial-services industry includes real estate brokers, fund managers, and auditors.

89. As an employee of a financial-services firm, Elise helps her clients reduce their debt, build their wealth,

and save for their retirement. Which certification is Elise mostly likely to need to perform her job:

A. Certified Loan Officer (CLO) C. Certified Financial Planner (CFP)

B. Certified Tax Specialist (CTS) D. Chartered Market Technician (CMT)

90. Which of the following is a certification sought by individuals who evaluate companies and industries and

make buy, sell, and hold recommendations for certain securities:

A. Chartered Financial Consultant (ChFC) C. Chartered Financial Analyst (CFA)

B. Certified Financial Planner (CFP) D. Certified Stock Broker (CSB)

91. Troy is a finance manager for a small firm in town. Last night, he attended a cookout at his neighbor's

house, and met Melissa, who is the owner of a large financial-planning company. Troy and Melissa

exchanged business cards, and they set up an appointment for the following week to discuss business

opportunities. In what type of situation did Troy and Melissa form a professional business relationship?

A. Corporate environment C. Educational setting

B. Formal event D. Social networking

92. Which of the following is an example of a businessperson using networking techniques to develop

professional financial relationships:

A. A financial planner calls a long-term client to set up an appointment to discuss the client's

financial accounts.

B. A bank teller processes a customer's check-deposit request and gives the customer a receipt.

C. An insurance agent gives his business card to several small-business owners at a chamber-ofcommerce meeting.

D. A finance manager asks employees if they have anything they would like to discuss during the

departmental meeting.

93. One way for a company to manage its risk in relation to its employees' workplace behavior is by

A. allowing employees to view all company records.

B. providing employees with the flexibility to change company policies.

C. encouraging employees to report workplace misconduct.

D. permitting employees to use company resources for personal use.

94. How do ethics relate to risk management?

A. Risk management is all about the ethical treatment of customers.

B. The best form of risk management is adherence to business ethics.

C. Risk management is insurance for lapses in business ethics.

D. The best form of business ethics is risk management.

95. To reduce the risk of loss due to fire or power outages, a financial business should protect its computer

data by

A. using encryption techniques. C. implementing an authorization process.

B. conducting backup procedures. D. monitoring data-transmission rates.

96. When businesses continuously monitor the laws and implement changes to remain in compliance, they

are

A. demonstrating negligence. C. interpreting contracts.

B. controlling their risks. D. increasing their liabilities.

97. Which of the following statements is true regarding risk retention groups:

A. The insurance policy holders are also the company's stockholders.

B. A risk retention group may insure companies from many different industries.

C. Group members control risk by retaining equity and transferring liability to external sources.

D. Risk retention groups tend to pay higher licensing fees than traditional insurance companies.

98. Which of the following situations is an example of a business controlling its internal risks:

A. A law firm allows its malpractice insurance to lapse.

B. A service business hires illegal immigrants and pays them low wages.

C. A manufacturer inspects and maintains its equipment on a regular basis.

D. A retailer sells a particular line of goods below cost.

99. Why is the choice of a risk measure for internal and external risk of great practical importance?

A. It determines the maximum number of clients that can be served effectively by a financial

institution.

B. It determines the minimum reserve requirements in financial trading.

C. It identifies the types of risks that the financial institution will encounter.

D. It designates the audience that will receive the resulting financial reports.

100. The management function of business is usually responsible for

A. preparing ads. C. setting policy.

B. serving customers. D. stocking shelves.