1. If the CEO of a company were to pass away, what do you think would happen to

ID: 2629979 • Letter: 1

Question

1. If the CEO of a company were to pass away, what do you think would happen to the price of stock?

A. It would increase because of the perceived increased risk due of lack of near- Term Leadership

B A. It would increase because of the perceived decreased risk due of lack of near- Term Leadership

C.A. It would decrease because of the perceived increased risk due of lack of near- Term Leadership

D. A. It would decrease because of the perceived decrease risk due of lack of near- Term Leadership

2. Which of the following is considered as a violation of business ethics?

A. Repurchase of shares

B. Using the call option on a callable bond when the interest rate is low

C. Earnings management

D. Paying a high amount of dividends every year

3. The Sarbanes- Oxley Act of 2002 rersulted in____

A. Delayed disclosure of stock sales by corporate executives

B. Tightened audit regulations and controls

C. Toughened penatlies against overcompensated executives

D. Lenient Penalties against executives who commit corporate fraud

4. Which of the following is an example of aagency cost

A. Payment of income Tax

B. Failure of making the best investment descion

C. Payment of interest

D. Costs incurred for setting up an agency

5. Which of the follwing provides savers with a secure place to invest funds and offer both individuals and companies loans to Finance investments?

A. Mutal Funds

B. IINvestment Banks

C. Commercial Banks

D. Securities exchanges

Explanation / Answer