FOF

What are financial institutions?

• Entities that help individuals and businesses with legal services

• Entities that help individuals and businesses fulfill their monetary or financial requirements

• Entities that help individuals and businesses with healthcare services

• Entities that help individuals and businesses with educational services

What is the difference between money market and capital market?

• Money market is for short-term debt, while capital market is for long-term assets

• Money market is for long-term assets, while capital market is for short-term debt

• Money market is for trading stocks, while capital market is for trading bonds

• Money market is for borrowing money, while capital market is for lending money

What are the advantages of a sole proprietorship?

• Full control of business decisions and spending habits

• All of the above

• Low start-up costs

• Easy tax reporting

What is a corporation?

• A business organization that is owned by a single individual

• A business organization that is not legally recognized

• A business organization that is owned by multiple individuals

• A business organization that acts as a unique and separate entity from its shareholders

What are the goals of a firm?

• Profit Maximization, Maximization of the Shareholders Wealth, Maximization of the Competitors Welfare

• Profit Maximization, Maximization of the Shareholders Wealth, Maximization of the Government Welfare

• Profit Maximization, Maximization of the Shareholders Wealth, Maximization of the Employees Welfare

• Profit Maximization, Maximization of the Shareholders Wealth, Maximization of the Stakeholders Welfare

What is the difference between individual investors and institutional investors?

• Individual investors invest in long-term assets, while institutional investors invest in short-term debt

• Individual investors invest on behalf of others, while institutional investors invest on their own behalf

• Individual investors are nonprofessional investors, while institutional investors are professional analysts

• Individual investors use their own money, while institutional investors invest the money of others

What is a private placement?

• Raising capital by selling securities to a large number of investors

• Raising capital by selling securities to a small number of investors

• Raising capital by borrowing money from banks

• Raising capital by issuing new securities on an exchange

What is the primary market?

• A market that issues new securities on an exchange

• A market where investors purchase securities from other investors

• A market where investors purchase securities from issuing companies

• A market where investors purchase commodities

What is the secondary market?

• A market where investors purchase commodities

• A market where investors purchase securities from issuing companies

• A market where investors purchase securities from other investors

• A market that issues new securities on an exchange

What is the agency problem?

• A conflict of interest arising between shareholders and creditors

• A conflict of interest arising between employees and management

• A conflict of interest arising between shareholders and management

• A conflict of interest arising between creditors and management