Brealey. Myers. Allen Chapter 34 Test

Brealey. Myers. Allen Chapter 34 Test - Chapter 34...

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Brealey/Myers/Allen, Principles of Corporate Finance, 8/e 1 Chapter 34 Governance and Corporate Control Around the World Multiple Choice Questions 1. The United States has a market-based financial system because: (I) it has a large stock market (II) it has a large corporate bond market (III) it has financial institutions A) I only B) II only C) III only D) I and II only Answer: D Type: Easy Page: 931 2. Financial markets are more important for firms to raise funds for investment in the: (I) U.S.A (II) U.K. (III) Germany A) I only B) II only C) III only D) I and II only Answer: D Type: Easy Page: 931 3. Financial institutions are more important for firms to raise funds in (the): (I) U.S.A (II) Germany (III) Japan A) I only B) II only C) III only D) II and III only Answer: D Type: Easy Page: 931 4. Individual investors in the U.S.A. can play an important part in corporate governance because: (I) a large fraction of households' portfolio is held directly in equity securities (II) a large fraction of households' portfolio is held in pension funds (III) a large fraction of households' portfolio is held directly in bank deposits A) I only B) II only C) III only D) II and III only Answer: A Type: Medium Page: 933
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2 5. The following are sources of financing for corporations: (I) Households (II) Financial institutions (III) Other corporations A) I only B) II only C) III only D) I, II, and III Answer: D Type: Easy Page: 934 6. In Japan inter-company financing is in the form of: A) Term loans B) Trade credit C) Leasing D) None of the above Answer: B Type: Easy Page: 934 7. The legal system in the U.S.A is based on: A) Common law tradition B) Civil law tradition C) Sharia tradition D) None of the above Answer: A Type: Easy Page: 936 8. The legal system in France is based on: A) Common law tradition B) Civil law tradition C) Sharia tradition D) None of the above Answer: B Type: Medium Page: 968 9. The following countries have legal system based on civil law tradition: (I) Germany (II) France (III) Scandinavia (IV) U.K A) I only B) II only C) I, II, and III only D) IV only Answer: C
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This note was uploaded on 04/18/2010 for the course FINANCE 936116531 taught by Professor Wuyiling during the Spring '10 term at Nashville State Community College.

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Brealey. Myers. Allen Chapter 34 Test - Chapter 34...

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