Fin 534 quiz 1 new

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FIN 534 QUIZ 1 This quiz consist of 15 multiple choice questions and covers the material in Chapter 1. Be sure you are in Chapter 1 when you take the quiz.

Question 1 Which of the following statements is CORRECT? Question2 Which of the following statements is CORRECT? Question 3 Which of the following statements is CORRECT? Question 4 Which of the following could explain why a business might choose to operate as a corporation rather than as a sole proprietorship or a partnership?

Question 5 One drawback of switching from a partnership to the corporate form of organization is the following: Question 6 Jane Doe, who has substantial personal wealth and income, is considering the possibility of starting a new business in the chemical waste management field. She will be the sole owner, and she has enough funds to finance the operation. The business will have a relatively high degree of risk, and it is expected that the firm will incur losses for the first few years.

However, the prospects for growth and positive future income look good, and Jane plans to have the firm pay out all of its income as dividends to her once it is well established. Which of the legal forms of business organization would probably best suit her needs?

Question 7 Which of the following statements is CORRECT? Question 8 Money markets are markets Question 9 Which of the following statements is CORRECT? Question 10 With which of the following statements would most people in business agree?

Question 11 Which of the following statements is CORRECT? Question 12 Which of the following statements is CORRECT? Question 13 Which of the following statements is CORRECT? Question 14 Which of the following is a primary market transaction?

Question 15 You recently sold to your brother 200 shares of Disney stock, and the transfer was made through a broker, and the trade occurred on the NYSE. This is an example of: