FINANCE MC FLASHCARD

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A public corporation's board of directors has the fiduciary responsibility to ensure that the company makes decisions that protect the financial interests of

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all shareholders.

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Which type of investment scheme does this example most likely describe? Several months ago, Erin convinced Sebastian to invest in her new business that sells health supplements. Erin promised that Sebastian would receive a 10% return on his investment every month. Since investing in Erin's company, though, Sebastian hasn't earned any money on his investment. Instead, Erin seems to have used his investment to financially reward earlier investors. Options: A. Ponzi scheme, B. Prime bank scheme, C. Annuities scam, D. Predatory lending

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Ponzi scheme

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Frank and Fitzer's earnings are subject to __________ taxation.

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double

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A financial institution fails to comply with an important government regulation. The financial institution will most likely

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pay a fine.

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Which of the following is a benefit of using technology in compliance: A. Less need for procedures and policies, B. Better risk management, C. Lower cost of implementing compliance, D. Decreased transparency

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Better risk management

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Which of the following is an example of an informational message geared toward an external audience: A. An inventory report, B. An office calendar, C. An employee handbook, D. A print advertisement

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A print advertisement

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An employee with a prominent company position regularly uses offensive language criticizing government leaders in his personal social media posts. He is putting his company at risk of

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developing a negative public image.

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Catherine has been Trevor's financial planner for 10 years. Because Trevor feels that Catherine has his best interests in mind and keeps him updated on his investments, he told several of his friends and colleagues about Catherine's expertise and recommended that they make appointments with her to discuss their financial plans. The benefit to Catherine in this situation is that she

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received referrals from an existing client.

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The Middleton Company uses customer relationship management (CRM) software to categorize customers by their sales-dollar volume over a specific period of time. In this situation, the Middleton Company is using __________ analytics to segment customers.

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profitability

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Which of the following statements about economic resources is true: A. As human resources become limited, natural resources and capital goods become limited. B. As capital goods and natural resources become limited, human resources become limited. C. As capital goods and human resources become limited, natural resources become limited. D. As natural and human resources become limited, capital goods become limited.

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As natural and human resources become limited, capital goods become limited.