Profitability – Finance Final Exam

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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    
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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


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