Profitability – Finance Final Exam
The key terms of Finance Final Exam include, Public Ownership, Profitability.
For a firm to have its securities listed on an exchange, it must meet certain requirements. These usually include measures of profitability, size, market value, and a public ownership
True
A seasoned equity offering is the sale of additional shares by a company whose shares are already publicly traded
True
Financial intermediaries issue their own indirect securities and use the proceeds to purchase the direct securities of other economic units
True
general Electric (GE) has been a public company for many years with its common stock traded on the NYSE. If GE decides to sell 500,000 shares of new common stock, the transaction will be described as:
a seasoned equity offering because GE has sold common stock before
A wealthy private investor providing a direct transfer of funds is called?
an angel investor
It is never appropriate to compare nominal rates unless they include the same number of compounding periods per year
True
A share of preferred stock that pays the same annual dividend forever is an example of perpetuity
True
A limited liability company (LLC) is taxed like a partnership but provides limited liability for its owners similar to a corporation
True
Owners of a corporation enjoy limited liabaility
True
Limited partnership provides limited liability to:
only to limited partners who do not participate in the management of the business
All of the following business organizations provide limited liability to their owners except:
general partnership
Which of the following is an advantage of the sole proprietorship?
no significant legal requirements for starting the business
The true owners of the corporation are the…
common stockholders
Which of the following forms of business organization has the greatest ability to attract new capital?
corporation
Three ways that savings can be transferred through financial markets to those in need of funds include direct transfers, indirect transfers using the investment banker, and indirect transfers using the financial intermediary
True
Each purchase occurring in the secondary markets increases the total stock of financial assets that exist in the economy
False
The money market includes transactions in short-term financial instruments
True
Over-the-counter markets include all security markets, with the exception of organized exchanges
True
For a firm to have its securities listed on an exchange, it must meet certain requirements. These usually include measures of profitability, size, market value, and a public ownership
True
A seasoned equity offering is the sale of additional shares by a company whose shares are already publicly traded
True
Financial intermediaries issue their own indirect securities and use the proceeds to purchase the direct securities of other economic units
True
general Electric (GE) has been a public company for many years with its common stock traded on the NYSE. If GE decides to sell 500,000 shares of new common stock, the transaction will be described as:
a seasoned equity offering because GE has sold common stock before
A wealthy private investor providing a direct transfer of funds is called?
an angel investor