College Bus- Semester 1 Final (Ch. 17-20, App. D) Part 2

Which of the following is a financial instrument used by companies to raise funds for short-term needs without involving a bank?

• Commercial Paper

• Trade Credit

• Factoring

• Bond Sinking Fund

A stock purchase order which buys a stock at the offered price is called a ___________ order.

• Market

• Limit

• No Load

• Index

__________ invest in early-stage companies, provide strategic guidance, and aim to profit by

helping these companies grow and eventually go public.

• Angel Investors

• Hedge Funds

• Venture Capitalists

• Private Equity Firms

Which financial statement provides a snapshot of a company's financial position at a specific point in time, and shows how much money a company has borrowed?

• Income Statement

• Balance Sheet

• Statement of Cash Flows

• Statement of Retained Earnings

True or False? A company's first sale of stock to the public is known as an Initial Public Offering (IPO).

• True

• False

True or False? A person can have a net worth that is less than zero.

• True

• False

Entities such as pension funds or mutual funds that manage large sums of money for others are known as...

• Institutional Investors

• Investment Banks

• Retail Investors

• Hedge Funds

A stock is trading at $150. It pays a dividend of $6 per year. Its dividend yield is...

• 2%

• 3%

• 4%

• 5%

True or False? Bonds can be sold before their maturity date.

• True

• False

The comptroller or controller is responsible for overseeing the financial reporting and accounting operations of an organization. True or False?

• True

• False