4.01 Relationship Between Government & Business
The government can prevent unqualified persons from operating a business by:
A. refusing to grant them a license.
B. closing their bank accounts.
C. helping their competitors.
D. assessing extra taxes.
A. refusing to grant them a license.
The maximum penalty that can be imposed on a business entity for false or misleading information on any SEC report or application is:
A. $1,000.
B. $100,000.
C. $200,000.
D. $250,000.
D. $250,000.
After a party, several students from the university found a can of paint during their walk home. They thought it would be funny to paint the front windows of several stores nearby. This crime is known as:
A. arson.
B. bashing.
C. larceny.
D. vandalism.
D. vandalism.
Chandra is in charge of data security in a large corporation. To make sure the data security is effective, Chandra should hire a third party to conduct a yearly:
A. audit.
B. backup.
C. encryption standard.
D. employee background check.
A. audit.
Why do many people pursue finance careers?
A. Finance careers generally have small salaries.
B. There is a positive outlook for finance careers.
C. Careers in finance are typically easier than other careers.
D. Little education or training is needed for careers in finance.
B. There is a positive outlook for finance careers.
Providing compensation to the unemployed and aid to dependent children are ways that the government intervenes in the economy to:
A. manage yearly spending.
B. protect private property.
C. improve public welfare.
D. set safety standards.
C. improve public welfare.
Violators of the SEC rules of the Securities Exchange Act of 1934 are subject to criminal penalties. The maximum penalty for an individual is:
A. $100,000.
B. $500,000.
C. $1,000,000, imprisonment for 5 years, or both.
D. $1,000,000, imprisonment for 10 years, or both.
D. $1,000,000, imprisonment for 10 years, or both.
A business can protect itself from shoplifters by:
A. using dividers between departments.
B. having several entrances and exits.
C. stocking goods on tall shelf units.
D. using closed-circuit television.
D. using closed-circuit television.
A marketing-communications firm has confidential client data stored on its computer. Which is the best way for the firm to limit the number of employees who can view the information?
A. secure the firm's website by using encryption techniques
B. ask new employees to sign confidentiality agreements
C. disable the firm's computer networking capabilities
D. restrict computer access by assigning passwords
D. restrict computer access by assigning passwords
Eduardo oversees the money management for his company. What category of finance does Eduardo work in?
A. insurance
B. banking services
C. corporate finance
D. securities and investments
C. corporate finance
Which is a public good that is provided by government?
A. interstate highways
B. marketing research
C. new automobiles
D. private schools
A. interstate highways
During a sales meeting with a customer, a registered representative states that he is so confident about the investment he will reimburse the customer for any losses. This arrangement is:
A. permissable if the customer is a relative.
B. commingling and a violation of FINRA rules.
C. permissable because the representative did not promise the customer a profit.
D. a violation of SEC rules because the registered representative guaranteed the customer against loss.
D. a violation of SEC rules because the registered representative guaranteed the customer against loss.
Rhonda's Jewelry was open for business when a masked gunman entered and proceeded to take all the jewelry from the display case. This is an example of:
A. burglary.
B. embezzlement.
C. robbery.
D. shoplifting.
C. robbery.
At his company, Paul is responsible for making sure the organization is complying with its privacy policy. Which privacy principle is Paul fulfilling?
A. fairness
B. openness
C. accountability
D. collection limitation
C. accountability
Which statement is true of finance careers?
A. People skills are unnecessary.
B. Soft skills are extremely important.
C. Communication skills are unimportant.
D. Only mathematical skills are necessary.
B. Soft skills are extremely important.
One way in which the government protects private property is by providing:
A. local government programs.
B. Federal Reserve banks.
C. fire insurance policies.
D. patents or copyrights.
D. patents or copyrights.
If an investor requests additional information about a trade confirmation that he/she received, the requested information must be furnished to him/her within:
A. thirty days of the request.
B. five business days of the request.
C. five business days after the date of the transaction.
D. fifteen business days after the date of the transaction.
B. five business days of the request.
Jace and Geo were mad because a restaurant kicked them out for being too loud. They returned after closing and set fire to the business. This criminal act is:
A. arson.
B. embezzlement.
C. shoplifting.
D. vandalism.
A. arson.
4.03 Security Precautions
Preventing security problems is important to businesses because the financial losses from these problems may force the businesses to:
A. close.
B. expand.
C. move.
D. reorganize.
A. close.
Which job duties belong to a person who works in corporate finance?
A. accepting deposits, lending funds, and extending credit
B. budgeting, financial planning, and implementing capital structure
C. delivering “products” that transfer risk from customers to the company
D. dealing with cash management, short-term investments, and mortgages
B. budgeting, financial planning, and implementing capital structure
As the size and power of U.S. businesses have grown over time, the federal government's involvement in the U.S. economy has:
A. increased.
B. decreased.
C. stayed the same.
D. become unimportant.
A. increased.
Which policy is a good way for a business to prevent burglaries?
A. Follow proper procedures for closing a business at the end of the day.
B. Notify the proper authorities when cash shortages are discovered.
C. Train employees to identify counterfeit bills and bad credit cards.
D. Monitor the amount of cash in registers throughout the day.
A. Follow proper procedures for closing a business at the end of the day.