Financial Markets and Business Quiz

What is one way businesses can obtain financial capital?

• By selling products

• By reducing costs

• By hiring more employees

• By issuing bonds

What is a bond?

• A loan from a bank

• A type of stock

• A form of dividend

• A financial contract to repay borrowed money with interest

What is an IPO?

• Initial Public Offering

• Investment Portfolio Option

• International Payment Order

• Internal Profit Objective

Who are angel investors?

• Government agencies that fund businesses

• Large corporations that buy small companies

• Individuals who provide early-stage capital to startups

• Banks that offer loans to businesses

What is a venture capital firm?

• A firm that invests in new companies with growth potential

• A firm that sells stocks to the public

• A firm that manages retirement funds

• A firm that provides loans to individuals

What is a dividend?

• A type of bond

• A direct payment to shareholders

• A loan from a bank

• A form of stock

What is a capital gain?

• A loan from a bank

• A form of dividend

• A type of bond

• The increase in value of a stock or asset

What is a private company?

• A company that does not make profits

• A company that only sells bonds

• A company whose stock is not publicly traded

• A company owned by the government

What is a public company?

• A company whose stock is publicly traded

• A company that only sells bonds

• A company that does not make profits

• A company owned by the government

What is the role of a board of directors in a public company?

• To provide loans to the company

• To ensure the firm is run in the interests of shareholders

• To manage day-to-day operations

• To sell the company's products