FINANCE EXAM 2

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

• pay a fine.

• get a better reputation.

• gain new business.

• avoid an audit.

One benefit of using technology in compliance is that technology is typically more _________ than maintaining manual compliance processes.

• A. time-consuming

• B. costly

• C. efficient

• D. error-prone

Many nations have developed environmental regulations in order to encourage

• moral conduct

• ethical behavior

• conservation

• industrialization

Joan borrowed $10,000 from a relative to start her own business. Assuming she takes all responsibility for the company's financial risks, the company is most likely a

• sole proprietorship

• limited partnership

• corporation

• partnership

Andrew received an official-looking email that appeared to be from a government agency. The message requested that Andrew reply immediately to the email and provide his bank account information and credit card account numbers. Fortunately, Andrew found out that the message was fraudulent before he provided the information. What illegal activity does this situation exemplify?

• Ponzi scheme

• Phishing

• Affinity fraud

• Accounting fraud

An individual or business can minimize capital losses on investment property by

• liquidating remaining assets.

• claiming the loss as a tax deduction.

• obtaining a long-term loan.

• renegotiating property insurance premiums.

Which of the following statements about following directions is true: A. Most people don't need to ask questions about directions. B. Restating directions in your own words helps clarify them. C. Hearing directions is the same as listening to them. D. You should avoid taking notes while listening to directions.

• Most people don't need to ask questions about directions.

• Restating directions in your own words helps clarify them.

• Hearing directions is the same as listening to them.

• You should avoid taking notes while listening to directions.

When giving verbal instructions, you should always A. avoid eye contact. B. give concrete examples. C. provide written directions. D. use as many steps as possible.

• avoid eye contact

• give concrete examples

• provide written directions

• use as many steps as possible

To contribute to a discussion in a useful way, you should avoid

• A. blurting out statements without thinking.

• B. stating opinions and stick to the facts.

• C. talking about what's on your mind.

• D. paying attention when others are speaking.

The business manager tried to write a promotional letter that was simple, clear, and interesting so that customers who received it would

• easily understand it.

• need to read it many times.

• find it entertaining.

• ask what it really meant.