Types of Financial Markets

When is there a high risk for a stock to become worthless?

• the financial markets are fluctuating

• the interest rates are decreasing

• the business that issued the stock is about to declare bankruptcy

• market stock prices are increasing

The price of a security may be affected by:

• renovations

• current events

• destinations

• wages

Which of the following best describes diversification?

• avoiding any risk by investing in blue-chip stocks

• putting all your investments in two financial instruments

• investing in bonds

• reducing risk by investing in different types of securities

PHYSICAL CAPITAL IS OF TWO TYPES:-

• FIXED CAPITAL, WORKING CAPITAL

• FARMING CAPITAL, HUMAN CAPITAL

• FIXED CAPITAL, HUMAN CAPITAL

• ALL OF THESE

Advantages include limited liability for owners, unlimited life, and ease of transfer of ownership. 

• Sole Propriotorship
• Partnership
• Corporation

What is it called when many different types of stock are pooled together?

• mutual fund

• index fund

• bond

• stock

Which is the least risky investment?

• A Stock

• A Mutual Fund

• Starting your own business

why are markets important?

• to satisfy needs or consumers.

• to satisfy producers.

• to buy industries.

• none of the above.

Which is ONE disadvantage of Sole Proprietorship?

• Less direct control
• Disagreements
• Hard to raise money

What do we call a person who is willing to take the risks of starting a business in order to make a profit?

• Proprieter
• Partner
• Entrepreneur
• Incorporater