Exam1 Quiz Key
-------------------------------------------------
QUIZ1
FF2-1
What are the three sources of financial value? ---------time value, transformation value, and arbitrage
FF32-92
Which statement most accurately describes the members on the Board of Directors?
--------They often are successful outsiders with careers unrelated to the mission of the company They are elected to the Board by shareholders They usually are not employees of the company
FF29
The typical management hierarchy is a pyramid headed by the Board of Directors. Underneath that are senior management, including the Chief Executive Office (CEO) and Chief Financial Officer (CFO). Which statement is most consistent with the textbook discussion. -------The Office of the Treasurer typically administers the finance functions of the firm. The Office of the Controller typically administers the accounting functions of the firm. Besides the CEO, there are in a typical large corporation many senior management positions (e.g., Marketing Chief; Head General Counsel, CFO) and no single-one can really be called most important.
FF25
Choose the one statement that most correctly describes categorization schemes of the financial market -------------the equity market includes stocks that do not specify repayment schedules but instead represent a claim on residual cash flows the nature of the repayment promise is the distinguishing criterion when categorizing markets as either credit market or equity market the money market includes financial securities repayable within one year the distinguishing criterion when categorizing markets as either primary or secondary is whether the security is new or used (seasoned) the capital market includes financial securities repayable in more than one
QUIZ1
FF2-1
What are the three sources of financial value? ---------time value, transformation value, and arbitrage
FF32-92
Which statement most accurately describes the members on the Board of Directors?
--------They often are successful outsiders with careers unrelated to the mission of the company They are elected to the Board by shareholders They usually are not employees of the company
FF29
The typical management hierarchy is a pyramid headed by the Board of Directors. Underneath that are senior management, including the Chief Executive Office (CEO) and Chief Financial Officer (CFO). Which statement is most consistent with the textbook discussion. -------The Office of the Treasurer typically administers the finance functions of the firm. The Office of the Controller typically administers the accounting functions of the firm. Besides the CEO, there are in a typical large corporation many senior management positions (e.g., Marketing Chief; Head General Counsel, CFO) and no single-one can really be called most important.
FF25
Choose the one statement that most correctly describes categorization schemes of the financial market -------------the equity market includes stocks that do not specify repayment schedules but instead represent a claim on residual cash flows the nature of the repayment promise is the distinguishing criterion when categorizing markets as either credit market or equity market the money market includes financial securities repayable within one year the distinguishing criterion when categorizing markets as either primary or secondary is whether the security is new or used (seasoned) the capital market includes financial securities repayable in more than one