1.Olympus Capital Corp., a finance company, buys several company offices, furniture and equipment for those offices, and corporate automobiles. These items are considered
Multiple Choice
- fixed assets.
- variable assets.
- short-term assets.
- luxury assets.
- employee satisfaction assets.
2.If a company cannot afford to buy the equipment, machines, and buildings it needs to succeed, it can pay a fee to use these assets. This is called
Multiple Choice
- bartering.
- operating.
- financing.
- leasing.
- retaining.
3.Which of the following potential investment projects poses the least risk, according to qualitative assessment of capital budgeting risk?
Multiple Choice
- Introducing new products in foreign markets
- Expanding into a new market
- Introducing new products
- Buying new equipment for established markets
- Adding to a product line
4.The _____ specifies all of the terms of the agreement between the bondholders and the issuing organization.
Multiple Choice
- lockbox
- annual report
- capital budget
- indenture
- trade coupon
5.apital in excess of par is the difference between a stock’s par value and its
Multiple Choice
- offering price.
- prime rate.
- coupon rate.
- retained earnings.
- dividend yield.
6.A difference between the NASDAQ market and the New York Stock Exchange (NYSE) is that the NASDAQ
Multiple Choice
- had merged with electronic exchanges in the past but the NYSE had not.
- is a publicly traded company, while the NYSE is not.
- has traditionally been an electronic market, while the NYSE has traditionally been a floor-traded market.
- is a not-for-profit organization, while the NYSE is a for-profit organization.
- is now classified as an over-the-counter market, while the NYSE is classified as an exchange by the SEC.
