Securities and Investments
2) Stocks for small companies traded with individual investments firms are called
A) discount stocks
B) over-the-counter
C) penny stocks
D) blue chip
B) over-the-counter
34)
The neutral third party who helps resolve a conflict is the
A) negotiator.
B) motivator.
C) mediator.
D) arbitrator.
C) mediator.
1) The excess of issue price over par of common stock is termed a(n)
A) premium.
B) income.
C) discount.
D) deficit.
A) premium.
2) Putting your hand on the shoulder of a coworker or supervisor may be interpreted as
A) sexual harassment.
B) an obvious habit of a lonely person.
C) an attention getting habit.
D) a friendly gesture.
A) sexual harassment.
2) The price of pork goes up in the grocery store due to a shortage of pork production in the country. This represents the economic concept of:
A) inelasticity
B) elasticity
C) supply and demand
D) inflation
C) supply and demand
67) The type of stock that pays a fixed dividend but has no voting rights is
A) common stock
B) growth stock
C) income stock
D) preferred stock
D) preferred stock
17)
Emotional intelligence includes all of the following except
A) self-concept.
B) self-awareness.
C) self-management.
D) social awareness.
A) self-concept.
2) When goods are sold for cash, the journal entry is
A) debit Cash, credit Sales.
B) debit Sales, credit Cash.
C) debit Merchandise Inventory, credit Accounts Payable.
D) debit Merchandise Inventory, credit Accounts Receivable.
A) debit Cash, credit Sales.
30) Which type of report is based on a periodic analysis of a company's accounts and financial records?
A) status report
B) audit report
C) periodic report
D) plan of action
B) audit report
17) The four factors of production are:
A) land, labor, capital, management
B) profit, loss, breakeven, marginal
C) water, land, fertilizer, equipment
D) price, supply, demand, equilibrium
A) land, labor, capital, management
85) The Board of Directors for a mutual fund does all of the following except
A) determines objectives for the fund
B) makes decisions on the fund’s investments
C) establishes policies for operation of the fund
D) determines the type of fund to offer
B) makes decisions on the fund’s investments
43)
Which statement describes a team vs. a group?
A) A team implies a sense of shared mission.
B) A group implies a sense of collective responsibility.
C) A team focuses on individual performance and goals.
D) A team has individual responsibilities.
A) A team implies a sense of shared mission.
15) When the issuing corporation retains the right to repurchase shares of preferred stock at a specified price, the preferred stock is said to be
A) Convertible.
B) Participating.
C) Callable.
D) Nonparticipating.
C) Callable.
78) Which of the following statements about interview posture is most accurate?
A) Change positions often and gesture very frequently to convey high energy
B) Sit erect, leaning forward slightly to show interest and confidence
C) Relax back into your chair, slouching slightly, to demonstrate self-assurance.
D) Lean forward and rest your arms on the desk or table before you to indicate control
B) Sit erect, leaning forward slightly to show interest and confidence
16) When conducting a capital budgeting investment analysis, a higher discount rate will:
A) decrease the NPV of the investment
B) make the investment more profitable
C) increase the NPV of the investment
D) not change the results of the analysis
A) decrease the NPV of the investment
56) Stock holders give written authorization to transfer voting rights to someone else. This is called
A) absenteeism vote
B) proxy
C) trust
D) delegation
B) proxy
79)
Leaders mostly use all of the following types of power to influence out-group members except
A) referent power.
B) coercive power.
C) legitimate power.
D) reward power.
A) referent power.
10) Assume the ZZ Corporation paid cash at maturity on a $5,000, 6-month note at 6% interest. What is the journal entry that was recorded when the loan was obtained?
A) debit Notes Payable, $5,000 and Interest Expense, $150; credit Cash, $5,150
B) debit Notes Payable, $5,000; credit Cash, $5,000
C) debit Cash, $5,000; credit Notes Payable, $5,000
D) debit Notes Payable, $5,150; credit Cash, $5,150
C) debit Cash, $5,000; credit Notes Payable, $5,000
85) Speakers are advised to avoid uptalk. Uptalk is defined as:
A) emphasizing or stressing certain words to change the meaning of the message.
B) speaking in an upbeat manner even in serious situations.
C) using a consistently high pitch, rate, and volume when speaking.
D) using a rising inflection at the end of a sentence, which makes statements sound like questions.
D) using a rising inflection at the end of a sentence, which makes statements sound like questions.
19) Which one of the following is a correct strategy for reducing “production” risk?
A) applying insecticide to growing crops
B) maintaining a low debt/equity ratio for the farm
C) purchasing property loss insurance to protect against such events as wind damage to farm buildings
D) using forward contracts to sell grain before harvest at attractive prices
A) applying insecticide to growing crops
92) An escrow account earning safe small rates of interest, established by corporations and municipalities to help with a bond rating is the
A) secured fund
B) debenture fund
C) sinking fund
D) escrow fund
C) sinking fund
41)
When asked about her new boss, an employee says that, "The relationship is simple, he tells me what to do and I do it. I only get what support is deemed absolutely necessary to a project. If I think that the support is simply inadequate, I ask for more. However, the last time that I did that, he put someone else on the job." This employee is probably a(n)
A) pragmatic follower
B) out-group member
C) lower-level employee
D) proactive team member
B) out-group member
27) Given the following information: Cash 29,000, Accounts Receivable $114,000, Inventory $113,000, Prepaid Expenses $6,000, Total capital assets $525,000, Total current liabilities $142,000, Long-term debt $289,000, Total shareholders' equity $356,000' Net sales $858,000, Cost of goods sold $513,000, Gross Margin $345,000, Net income $48,000. The debt ratio is:
A) 75%
B) 55%
C) 185%
D) 101%
B) 55%
92) Febuary 21, 2005/Mr. Johnson Shank/9,200 Lakeview Drive/Foley, AL 365350626
A) 3 or more errors
B) 1 error
C) 0 errors
D) 2 errors
A) 3 or more errors
20) Which one of the following is the best measure of liquidity for a farm business?
A) modified accelerated cost recovery system (ACRS)
B) weighted average cost of capital (WACC)
C) internal rate of return
D) current ratio
D) current ratio