Archives: Quiz

Which one of the following describes a short position? A. Purchasing a security on margin B. Selling a security that you originally purchased on margin C. Loaning a security to your broker to cover a margin call D. Having less […]

Riverside Metals recently issued some debt that had an original maturity of nine months. This debt is best classified as a(n): A. option contract. B. money market instrument. C. fixed-income security. D. derivative security. E. futures contract. Assume that the […]

Which one of the following is the largest market in the world for new debt securities with maturities of one year or less? A. commercial paper B. U.S. Treasury bill C. banker’s acceptance D. Eurodollar money market E. certificates of […]

Which one of the following advance/decline lines is the most bullish signal? A. relatively flat B. slightly upward sloping C. slightly downward sloping D. steeply upward sloping E. steeply downward sloping What is the percentage of a firm’s net income […]

Which one of the following terms is used to describe a stock price that moves over time creating no discernible pattern? A. deviated pattern B. dispersed flow C. efficient movement D. overreaction and correction E. random walk Employee stock options […]

By the end of 2002, the AMEX Internet Index was at a level approximately equal to _____ percent of the index high. A. 75 B. 50 C. 25 D. 17 E. 9 A 5.5 percent coupon bond has a face […]

The party who serves as a dealer for a few securities on an exchange floor and is obligated to maintain an orderly market for those securities is called a: A. floor trader. B. designated market maker. C. floor broker. D. […]

The relationship between GDP and market capitalization for the leading economies of the world is generally _______. A. weakly related B. inversely related C. negatively correlated D. positively correlated E. unrelated Which one of the following options is in-the-money? A. […]

Stacy purchased 400 shares of stock for $38 a share. She sold those shares six months later for $34 a share. The initial margin requirement is 80 percent and the maintenance margin is 40 percent. Ignore margin interest and trading […]

The one-year standard deviation of your portfolio is 14.8 percent. What is the two-year standard deviation? A. 16.47 percent B. 18.23 percent C. 20.93 percent D. 25.41 percent E. 27.20 percent Which of the following are common characteristic of the […]

Which one of the following debt instruments guarantees investors a positive real rate of return? A. zero-coupon bond B. default-free, pure-discount bond C. T-bill D. TIPS E. T-bond Which one of the following should be used as the mean return […]

The following portfolio has an expected return of _____ percent and a beta of _____. A. 12.45; 1.38 B. 12.84; 1.39 C. 13.39; 1.23 D. 13.39; 1.40 E. 13.45; 1.32 Which one of the following statements related to insider trading […]

You invested $5,000 in a mutual fund 27 months ago when the NAV of the fund was $30.00. You have not acquired or sold any shares since that time. Today, the NAV is $28.40. The fund charges a contingent deferred […]

Which of the following statements are true as applied to U.S. agency debt? I. It is equally as risky as Treasury debt. II. It is frequently subject to state taxes. III. It has the same credit guarantee as U.S. Treasury […]

A bond has a par value of $1,000 and a coupon rate of 6.5 percent. What is the dollar amount of each semiannual interest payment if you own 8 of these bonds? A. $180 B. $260 C. $320 D. $420 […]

Julie purchased four (4) S&P 500 index futures at a price of 1392. The contract size is $250 times the index value. The futures are maturing today at a price of 1387.50. What is the amount of her profit or […]

An investment will make one payment of $22,500 nine years from now. What is the current value of this investment if the nominal rate of return is 4.8 percent? A. $11,980.86 B. $12,124.29 C. $12,390.08 D. $13,515.46 E. $14,754.72 What […]

Sugar is currently selling for $0.201 a pound while the 6-month futures price is $0.208. You take a long position in the 6-month sugar futures. Which one of the following prices would cause you the greatest loss if that price […]

You purchased a stock for $29.40 a share, received a dividend of $0.72 per share, and sold the stock after one year for $31.30 a share. What was your dividend yield on this investment? A. 2.30 percent B. 2.38 percent […]

Lisa owns a stock that has an average geometric return of 11.34 percent and an average arithmetic return of 11.51 percent over the past six years. What average annual rate of return should Lisa expect to earn over the next […]

What is the difference between this day’s high and closing prices for one 10-year Treasury note futures contract? Treasury note, $100,000, pts and one-half of 1/32 of a point A. -$435.00 B. -$550.00 C. -$800.00 D. -$971.88 E. -$1,093.75 The […]

Suppose you are a U.S. investor who is planning to invest $350,000 in China. Your Chinese investment gains 8 percent. If the exchange rate moves from 6.09 Yuan per dollar to 6.12 per dollar over the period, what is your […]

Which one of the following assesses the ability of a money manager to balance high returns with an acceptable level of risk? A. probability analysis B. raw return ratio C. risk assessment D. performance evaluation E. market analysis Which one […]

Stocks which are listed on the NYSE can: A. not be listed on any other exchange. B. only be dual listed on a regional exchange. C. only be dual listed on Instinet. D. only be dual listed on the Archipelago […]

The Internet is a good source for primary information, but does not provide many secondary sources. The limited liability company is automatically taxed as a corporation. Answer: FALSE In a leveraged buyout, the entrepreneur uses equity funds to purchase an […]

Angel investors have a longer investment horizon than venture capitalists do. Financial ratios are control mechanisms to test the financial strengths of a new venture. Answer: TRUE For the Internet start-up, capital budgeting and operating expenses will tend to be […]

Technological uncertainty is eliminated by a superior technology. The sale of the company to employees is an exit strategy. Answer: TRUE A trademark is given a 50-year registration with no renewal. Answer: FALSE The files of the U.S. Patent Office […]

Synergy is when the whole is the aggregate of all of its parts. Bankruptcy protects entrepreneurs from creditors and competitors. Answer: FALSE Traditionally managed firms commitment to opportunity is revolutionary with a long duration. Answer: FALSE A business, when it […]

An error of commission occurs from the decision not to act on a new entry opportunity. The sponsoring company in a R&D limited partnership is the limited partner. Answer: FALSE Depreciation is considered a cash outlay, not an expense. Answer: […]

Two major disadvantages of going public are the increased reporting requirements and potential loss of control. The indirect method of projecting cash flow is the most popular. Answer: TRUE Early-stage financing is usually the least costly type of financing to […]

The Euromonitor provides very industry specific information on companies in the European Union. The reason that many noncompete agreements, which help protect trade secrets, are thrown out of court is that they are poorly structured and written. Answer: TRUE The […]

Capital budgets project expenditures on new equipment, vehicles, computers, or new facilities. Investors often spend a lot of time conducting background checks. Answer: TRUE Culture encompasses a wide variety of elements, including language, social structure, religion, political philosophy, economic philosophy, […]

Role models are individuals who give psychological support to the entrepreneur especially during the start-up phase. Balance sheet items are carried at cost, a good indicator of fair market value in valuing a company. Answer: FALSE Even when cash flow […]

One of the most successful diversification strategies is to diversify into unrelated products or unrelated markets to spread the risk. The return on investment ratio measures the ability of the firm to repay long-term debt using current assets. Answer: FALSE […]

The entrepreneur’s market knowledge is deeper than the knowledge that could be gained through market research. Experience is idiosyncraticunique to the life of the individual. Answer: TRUE In the product development stage, consumer reaction to the physical product/service is determined. […]

Outside capital should be sought only after all possible internal sources of funds have been explored. Once accepted, the trademark is published in the Trademark Official Gazette to allow any party 90 days to oppose or request an extension to […]

The decision regarding the legal form of organization should be made by the entrepreneur before request for venture capital. To determine the figures in the budget, the entrepreneur should identify benchmarks or norms in the industry. Answer: TRUE A quick […]

There is more risk involved in financing a business’s early operations, therefore, higher rates of return are expected. The process of writing the business plan provides a self-assessment for the entrepreneur. Answer: TRUE Entrepreneurs have stronger intentions to act when […]

To be successful the partners in a joint venture should have symmetry. The marketing plan is not meant to be a commitment by the entrepreneur to a specific strategy. Answer: FALSE A trademark is a distinguishing word, name, or symbol […]

Management needs to look at the marketing plan as a guide for implementing marketing decision making and not as a generalized, superficial document. In order to increase their chances for success, an entrepreneur should approach all possible venture capital firms […]

To implement participative management the entrepreneur should have open communication with employees. A reasonable profit that is earned with conservative estimates is not considered to be an initial success for a new venture. Answer: FALSE By understanding more about the […]

Focus groups are an informal method for gathering in-depth marketing information. In the partnership, profit and loss distribution is determined by the partnership agreement. Answer: TRUE Reference groups in any culture provide values and attitudes that influence behavior. Answer: TRUE […]

In the results of the most recent exam taken in the business research class, the average score was a 74.4. More students earned a 78 than any other score and half the grades were above 72 and half the grades […]

To evaluate the effect of the treatment in a pretest, posttest control group design, _____ is calculated. A.(O2-O1) – (O4-O3) B.O1-O3 C.O4-O3 D.O2-O3 E.O4-O2 A local restaurant is planning a study on demand for meals over holiday weekends. In calculating […]

Which of the following is an example of an after-only case study experimental design? A.Store traffic is measured following the announcement of a clearance sale B.Store traffic is measured; a sale is announced; store traffic is measured again C.People who […]

Which term below refers to a research program or technique that is owned by a single firm? A.Proprietary B.Omnibus C.Full-service D.Limited service E.Internal Which of the following trends is increasing the refusal rate associated with telephone surveys? A.Penetration of mobile […]

The Internet is fastest growing survey data collection mode. Which of the following is not a reason for the growth in this mode? A.Speed of response B.Cost savings C.Elimination of data entry D.Ease of providing monetary incentives E.All of the […]

Which of the following is another term for dependent variable? A.Discrete B.Criterion C.Mediator D.Predictor E.Construct Which type of sampling technique involves selecting research participants with no attempt at generating a statistically representative sample? A.Probability B.Nonprobability C.Random D.Systematic E.Cluster Answer: B. […]

In the study of bystanders and thieves presented in the text, participants are invited to a store where they see someone steal the purse of another customer. The accosted shopper and the thief are really acting their parts to set […]

A stem-and-leaf display differs from a histogram in that a stem-and-leaf display _____. A.presents actual data values B.groups values into intervals C.represents data using bars or asterisks D.illustrates each interval with a color for visualization E.is appropriate for nominal data […]