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University of Louisiana, Lafayette - FNAN 522 Exam I-MIDTERM, Exam II-FINAL ALL RATED A

A company needs to raise cash to cover its operating expenses. The company will only need the funds for a short period of time. Which financial market is the most appropriate for the company use t... o raise money (that is, likely the lowest cost and best-matched maturity)? Select one: a. Capital market b. All of these answers c. Derivative market d. Money market The correct answer is: Money market FNAN522-020_860-202020 Question 2 Correct Mark 1.00 out of 1.00 Question 3 Correct Mark 1.00 out of 1.00 What is the primary goal of the Sarbanes-Oxley act according to the Module 1 video "The Goal of Financial Management"? Select one: a. To help maintain a primary bull market. b. To prevent a secular bear market. c. To protect corporate executives from frivolous shareholder lawsuits. d. To protect investors from corporate abuse. The correct answer is: To protect investors from corporate abuse. Which of the following is an accurate characteristic of a sole proprietorship? Select one: a. There is more than one owner. b. The owner is personally liable for the business's debt and obligations. c. The owner must file a separate tax return for the business. d. A sole proprietorship typically elects board members for staggered terms. The correct answer is: The owner is personally liable for the business's debt and obligations. Question 4 Correct Mark 1.00 out of 1.00 Question 5 Correct Mark 1.00 out of 1.00 Which of the following is a source of agency costs in an organization? Select one: a. All of these answers. b. Parties associated with the organization have different risk preferences. c. The managers of the organization have different objectives than the other shareholders. d. The people who make the day-to-day decisions are not the owners. The correct answer is: All of these answers. Which of the following occurred during the financial crisis of 2007-2008? Select one: a. All of these answers b. Several major institutions failed or were subject to government takeover. c. Significant declines in consumer wealth and prolonged unemployment. d. A currency crisis, with investors transferring their wealth to countries with stronger currencies. The correct answer is: All of these answers Question 6 Correct Mark 1.00 out of 1.00 Question 7 Incorrect Mark 0.00 out of 1.00 Which of the following terms describes the protection of personal assets stemming from the corporate structure? Select one: a. simple transference b. limited liability c. double taxation d. articles of incorporation The correct answer is: limited liability What will $250,000 grow to be in 11 years if it is invested today in an account with an annual interest rate of 6%? [Show More]

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