Archives: Quiz
Economics Chapter 9 Thus The Likely Standard Deviation of The Portfolios
The Basic Tools of Finance 6721 25. If stock prices follow a random walk, then stock investors can make large profits by a. buying stocks whose prices have been falling for several days. b. buying stocks whose prices have been […]
Business & Finance Chapter 12 Corporations may sue and be sued in the name of the business itself
66. Corporations may sue and be sued in the name of the business itself. a. True b. False 67. Corporations are legal entities that are due all of the same constitutional protections due to real persons. a. True b. False […]
Economics Chapter 9 Basic Tools Finance 67113 The Efficient Markets Hypothesis
The Basic Tools of Finance 6701 102. Suppose interest of 5% for two years can be earned on $1,000 saved today with no risk. What is the least amount a person would need to have a 50% chance of winning […]
Business & Finance Chapter 12 The sole proprietorship is the most common business organization in the U.S
True / False 1. The majority of businesses are corporations. a. True b. False 2. State laws, not federal, concern the forms of business organization. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy NATIONAL STANDARDS: United States – […]
Economics Chapter 9 Tami knows that people in her family die young, and so she buys
The Basic Tools of Finance 6681 61. Tami knows that people in her family die young, and so she buys life insurance. Preston knows he is a reckless driver and so he applies for automobile insurance. a. These are both […]
Business & Finance Chapter 12 The Franchise Rule requires that the offering circular is given to prospective
267. Before franchises may be sold, the parent company must: a. register with the SEC under the 1933 Securities Act b. register with the SEC under the Investment Company Act c. register with the CFTC Franchise Offering Rule of 1990 […]
Economics Chapter 9 If most people’s utility functions look like Alex’s utility
The Basic Tools of Finance 6661 23. Refer to Figure 27-3. Suppose Paul begins with $900 in wealth. Starting from there, a. Paul would be willing to accept a coin-flip bet that would result in him winning $200 if the […]
Business & Finance Chapter 12 Which form of business incurs double taxation
227. Which form of business incurs double taxation: a. limited partnerships b. LLCs c. corporations d. proprietorships e. general partnerships 228. Which form of business incurs double taxation: a. limited partnerships b. LLCs c. proprietorships d. none of the other […]
Business & Finance Chapter 12 A board of directors’ fiduciary duty of loyalty requires that
174. Directors are under a to conduct themselves on behalf of the corporation as a reasonably prudent person in the conduct of personal business affairs. a. duty of reasonability b. duty of profit c. duty of management d. duty of […]
Economics Chapter 9 According to the rule of 70, if the interest rate is 5 percent
The Basic Tools of Finance 6621 156. According to the rule of 70, if the interest rate is 5 percent, how long will it take for the value of a savings account to double? a. about 3.5 years b. about […]
Business & Finance Chapter 12 The name and address of the corporation’s registered agent
117. The name and address of a corporation, the name and address of the corporation’s registered agent, and the purpose of the business are all examples of things that are generally included in: a. the articles of incorporation b. the […]
Economics Chapter 9 Which, if any, of the present values below are computed correctly
The Basic Tools of Finance 6601 118. Which, if any, of the present values below are computed correctly? a. A payment of $100 to be received one year from today, with a 2 percent interest rate, has a present value […]
Business & Finance Chapter 12 Which of the following could lead to the dissolution of a partnership
59. The of partnership affairs involves completing any unfinished business and then collecting and distributing the partnership’s assets. a. winding down b. resetting c. winding up d. terminating e. dissolution 60. In general, if a partnership agreement does not specify […]
Economics Chapter 9 None The Above Are Correct The Nearest
The Basic Tools of Finance 6581 78. Al, Ralph, and Stan are all intending to retire. Each currently has $1 million in assets. Al will earn 16% interest and retire in two years. Ralph will earn 8% interest and retire […]
Business & Finance Chapter 12 Ais an association of two or more persons to carry on a business as co-owners
Multiple Choice 1. There are businesses in the United States. a. over 30 million b. under 20 million c. over 50 million d. less than 500,000 e. too many 2. The majority of businesses in the United States are: a. […]
Economics Chapter 9 You put $150 in the bank two years ago and forgot about it
The Basic Tools of Finance 6561 38. You put $150 in the bank two years ago and forgot about it. The bank sends you a notice that you now have $169.34 in your account. What interest rate did you earn? […]
Business & Finance Chapter 11 Incidental damages include all reasonable costs or expenses
101. In Lee v. R&K Marine, where Lee bought a new boat from R&K that fell apart in three years, the court held the seller had properly disclaimed all warranties, so was not liable for the problem. a. True b. […]
Economics Chapter 9 Most financial decisions involve two related elements
The Basic Tools of Finance Multiple Choice – Section 00: Introduction 1. Most financial decisions involve two related elements: a. advice and consent. b. investment and taxes. c. time and risk. d. saving and consumption. ANSWER: c POINTS: 1 DIFFICULTY: […]
Business & Finance Chapter 11 If the parties to a contract failed to include a critical term
61. Under the UCC, parol evidence may be admitted to clarify customary trade practices. a. True b. False 62. With respect to parol evidence, the common law of contracts and Article 2 are the same. a. True b. False ANSWER: […]
Economics Chapter 8 what’s the difference between a saver and an investor
6530 Saving, Investment, and the Financial System 17. and are the two most important financial intermediaries. ANSWER: Banks, Mutual Funds Mutual Funds, banks POINTS: 1 DIFFICULTY: Difficulty: Easy LEARNING OBJECTIVES: ECON.MANK.15.126 – LO: 26-1 NATIONAL STANDARDS: United States – BUSPROG: […]
Business & Finance Chapter 11 Modern commercial law traces its roots to ancient rules known
True / False 1. In medieval Europe, rules governing trading among merchants developed called the law merchant. a. True b. False 2. Modern commercial law traces its roots to ancient rules known as the law merchant. a. True b. False […]
Economics Chapter 8 Suppose that you are a broker and people tell
Saving, Investment, and the Financial System 6519 61. Suppose that you are a broker and people tell you the following about themselves. What sort of bond would you recommend to each? Defend your choices. a. “I am in a high […]
Business & Finance Chapter 11 Rules governing trading among merchants developed called the law merchant
253. In QVC v. MJC America, where QVC sued for breach of contract after electric heaters delivered by MJC were shown to have defects, the trial court held that: a. MJC was liable to QVC for a number of kinds […]
Economics Chapter 8 When a firm wants to borrow directly from the public to finance
Saving, Investment, and the Financial System 6499 4. When a firm wants to borrow directly from the public to finance the purchase of new equipment, it does so by selling shares of stock. a. True b. False ANSWER: False POINTS: […]
Business & Finance Chapter 11 The was adopted by the United Nations to have a commercial code
218. In Lee v. R&K Marine, where a boat that Lee bought became unusable after only three years when it fell apart, and the seller had expressly disclaimed all warranties, the court held: a. Lee had no case because all […]
Economics Chapter 8 when the real interest rate is 7 percent
Saving, Investment, and the Financial System 6479 122. For an imaginary economy, when the real interest rate is 7 percent, the quantity of loanable funds demanded is $500 and the quantity of loanable funds supplied is $500. Currently, the nominal […]
Business & Finance Chapter 11 A buyer who receives goods that are nonconforming may reject them as
164. Under UCC Article 2, the buyer has an obligation to: a. accept conforming goods b. pay for the goods according to the contract c. keep the goods for at least 3 months d. both a and b are correct […]
Economics Chapter 8 Government Goes From Running Balanced Budget Running
Saving, Investment, and the Financial System 6459 89. A government budget deficit affects the supply of loanable funds, rather than the demand for loanable funds, because a. in our model of the loanable funds market, we define “loanable funds” as […]
Business & Finance Chapter 11 The court needs to resolve a term that is not clearly
108. Under the UCC, oral testimony: a. may contradict written documents b. may never be used c. may be used if the goods are not worth more than $10,000 d. may be used to explain trade dealings e. may be […]
Economics Chapter 8 Suppose the government were to replace the income tax
Saving, Investment, and the Financial System 6439 48. Suppose the government were to replace the income tax with a consumption tax so that interest on savings was not taxed. The result would be that the interest rate a. and investment […]
Business & Finance Chapter 11 If a good has been stolen and is then sold to an unsuspecting
60. If a good has been stolen and is then sold to an unsuspecting buyer: a. the good title passes to the buyer whether or not he knows the good was stolen b. the good title passes to the buyer […]
Economics Chapter 8 The slope of the supply of loanable funds curve represents the
Saving, Investment, and the Financial System 6419 6. Other things the same, when the interest rate rises, a. people would want to lend more, making the supply of loanable funds increase. b. people would want to lend less, making the […]
Business & Finance Chapter 11 This created a significant legal challenge for managers because
Multiple Choice 1. of the Uniform Commercial Code governs the law of commercial sales. a. Article 1 b. Article 2 c. Article 3 d. Article 4 e. Article 5 2. of the Uniform Commercial Code governs the law of commercial […]
Economics Chapter 8 An increase in the government’s budget deficit means
Saving, Investment, and the Financial System 6399 63. A budget surplus a. occurs when the government has debt equal to zero. b. causes government debt to increase. c. exists when government spending is greater than tax revenues. d. reduces the […]
Business & Finance Chapter 10 Courts that have adopted the notion of impracticability make it
161. Courts that have adopted the notion of impracticability make it much easier for parties to get out of contractual obligation than under courts that only use the doctrine of impossibility. a. True b. False 162. Injunctions are the most […]
Economics Chapter 8 Statistics for last year show that private saving was 60 billion
Saving, Investment, and the Financial System 6379 22. Which of the following equations represents GDP for an open economy? a. Y = C + I + G + NX b. NX = I – G c. I = Y – […]
Business & Finance Chapter 10 Where the buyer of a trailer court said he was promised
128. In Deschamps v. Treasure State Trailer Court, where the buyer of a trailer court said he was promised the water system was in good condition when in fact it was not, the Montana Supreme Court held that the parol […]
Economics Chapter 8 Which of the following statements about mutual funds is correct
Saving, Investment, and the Financial System 6359 161. Index funds a. buy all the stocks in a given stock index. b. promise to beat the market by a certain percentage known as an index. c. provide a return that is […]
Business & Finance Chapter 10 A voidable contract is a contract that one party has the right to avoid
66. In Hinson v. N&W Construction Co., where N&W relied on a plumbing bid by Hinson in making a bid on a construction contract that was later awarded, the court held that N&W could rely on the bid based on […]
Economics Chapter 8 Bay City Mining, Inc. has a price of $20 a share
Saving, Investment, and the Financial System 6339 121. Bay City Mining, Inc. has a price of $20 a share, outstanding shares of 2.5 million, retained earnings of $1 million dollars, and a dividend yield of 2 percent. It has a […]
Business & Finance Chapter 10 The Restatement of Contracts is an authoritative source that presents
True / False 1. The Restatement of Contracts is an authoritative source that presents and summarizes the common law of contracts. a. True b. False 2. Contract law is primarily state common law. a. True b. False ANSWER: True POINTS: […]
Economics Chapter 8 Nastech Pharmaceuticals announced it has developed a nasal spray
Saving, Investment, and the Financial System 6319 80. Nastech Pharmaceuticals announced it has developed a nasal spray that would reduce hunger cravings. Other things the same we would expect a. the demand for existing shares of stock in this company […]
Business & Finance Chapter 10 When the party who breaches a contract has behaved maliciously
366. When the party who breaches a contract has behaved maliciously and committed a tort, the court may want to discourage such behavior in the future by imposing what damages besides regular damages? a. compensatory b. expectancy c. liquidated d. […]
Economics Chapter 8 The first was issued by a state government and the probability
Saving, Investment, and the Financial System 6299 37. Two bonds have the same term to maturity. The first was issued by a state government and the probability of default is believed to be low. The other was issued by a […]
Business & Finance Chapter 10 Bart was supposed to deliver 100,000 firecrackers to Lisa
332. Bart was supposed to deliver 100,000 firecrackers to Lisa by June 1, but his factory explodes in April so suspends operations. The contract: a. has suffered a novation b. has incurred a rescission c. has incurred the failure of […]
Economics Chapter 8 When opening a print shop you need to buy printers
Saving, Investment, and the Financial System Multiple Choice – Section 00: Introduction 1. When opening a print shop you need to buy printers, computers, furniture, and similar items. Economists call these expenditures a. capital investment. b. investment in human capital. […]
Business & Finance Chapter 10 The parol evidence rule prohibits the introduction of oral
277. The parol evidence rule prohibits the introduction of oral evidence into a lawsuit where the evidence presented is contrary to the terms of a written contract. Parol evidence may be introduced when: a. it will explain the written instrument […]
Economics Chapter 7 Why do we refer to physical capital as a produced factor
Production and Growth 6265 15. Why do we refer to physical capital as a produced factor of production? ANSWER: Physical capital originates as an output from the production process, and is subsequently used as an input into the production process. […]
Business & Finance Chapter 10 For a contract to be valid, its subject matter must be lawful
224. A minor is someone who: a. is under the legal age of majority b. is over the legal age of majority c. is old enough to drive d. is old enough to vote e. does not earn any taxable […]
Business & Finance Chapter 10 If the values of the items exchanged in a contract are unequal
177. If the values of the items exchanged in a contract are unequal courts generally: a. hold that the contract is not binding b. require the parties to rewrite the contract c. require the offeree to add something to the […]