Question 1 (10 points)   Which of the following statements is...

Question 1 (10 points)

 

Which of the following statements is correct?

Question 1 options:

Earnings from sole proprietorships and partnerships are taxed at the individual level.

Partnerships are the most complex type of organization to form.

Limited partnerships are required to restate the liability to each partner annually when they file their financial reports with the SEC.

A limited partnership is legally the same as a corporation.

Question 2 (10 points)

 

Capital markets are markets where equity securities and debt securities with maturities of greater than one year are traded.

Question 2 options:

True

False

Question 3 (10 points)

 

Finance is the study of how individuals, institutions, and businesses acquire, spend and manage money and other financial resources.

Question 3 options:

True

False

Question 4 (10 points)

 

Money markets are markets where equity securities and debt securities with maturities of greater than one year are traded.

Question 4 options:

True

False

Question 5 (10 points)

 

Which of the following describes the basic function of money?

Question 5 options:

standard of value

store of purchasing power

medium of exchange

liquidity

Question 6 (10 points)

 

A business owned by two or more individuals, all having equal liability in the firm's debt, is called a:

Question 6 options:

General partnership.

Corporation.

Limited partnership.

Sole proprietorship.

Question 7 (10 points)

 

The percentage of deposits that must be held as reserves is called

 

Question 7 options:

required reserves

excess reserves

required reserve ratio

Question 8 (10 points)

 

You win a contest for which you get to pick your prize. Your options are:

a. $1,000 in the first month, $2,000 in the second month, $3,000 in the third month and so on for one year;

b. $5,000 per month for one year;

c. $12,000 in the first month, $11,000 in the second month, $10,000 in the third month and so on for one year.

 

Which prize should you pick?

 

Question 8 options:

a

b

c

Question 9 (10 points)

 

Agency problems exist in which forms of business ownership?  

   

   

Question 9 options:

corporation

sole proprietorship

partnership

S corporation

Question 10 (10 points)

 

Personal consumption expenditures indicate expenditures by individuals for durable goods, nondurable goods, and services.

Question 10 options:

True

False