Financial literacy

Which of the following is not a level of planning for business activity? a)opera

Which of the following is not a level of planning for business activity? a)operations budgeting b)estate planning c)capital budgeting d)strategic planning Which of the following i…

Which of the following is not a likely method used by a bank to reduce interest

Which of the following is not a likely method used by a bank to reduce interest rate risk? Answer Maturity matching Using interest rate caps Using interest rate futures contracts …

Which of the following is not a method for incorporating risk into capital budge

Which of the following is not a method for incorporating risk into capital budgeting? a. Positive Negative analysis b. Monte Carlo simulations c. Scenario analysis d. Sensitivity …

Which of the following is not a necessary assumption underlying the growing perp

Which of the following is not a necessary assumption underlying the growing perpetuity formula? The investor will remain invested in the investment forever. The required rate of r…

Which of the following is not a primary component of the term structure of inter

Which of the following is not a primary component of the term structure of interest rates? Real rate of interest Default premium Inflation premium Interest rate risk premium Which…

Which of the following is not a reason why some companies lease rather than buy?

Which of the following is not a reason why some companies lease rather than buy? Leasing can lower income taxes. Leasing transfers the title to the lessee at the beginning of the …

Which of the following is not a relevant cash flow when estimating the increment

Which of the following is not a relevant cash flow when estimating the incremental cash flows for a new hospital service? Select one: a. The value of floor space needed for the pr…

Which of the following is not a stated purpose of regulation? D. Deal with uniqu

Which of the following is not a stated purpose of regulation? D. Deal with unique pricing problems that do not allow for full and unrestrained competition B. Maintain insurer solv…

Which of the following is not a substantive action to change a corporation\'s cu

Which of the following is not a substantive action to change a corporation's culture in an attempt to portray mana a corporation's culture in an attempt to portray management's co…

Which of the following is not a true statement? Common stockholders have a resid

Which of the following is not a true statement? Common stockholders have a residual claim to income. Bondholders may force a corporation into bankruptcy for failure to make intere…

Which of the following is not a way that a firm can increase its dividend? A) By

Which of the following is not a way that a firm can increase its dividend? A) By increasing its earnings (net income) B) By increasing its dividend payout rate C) By decreasing it…

Which of the following is not a weakness of the IRR method Question options: May

Which of the following is not a weakness of the IRR method Question options: May have multiple IRRs Ignore the scale of the project May not work properly if negative cash flow (ot…

Which of the following is not a weakness of the original 1988 Basel I risk-based

Which of the following is not a weakness of the original 1988 Basel I risk-based capital standards? They ignore credit risk They ignore changes in value due to currency value chan…

Which of the following is not an advantage of going public? a) It allows a firm\

Which of the following is not an advantage of going public? a) It allows a firm's founders to diversify their holdings. b) It increases the liquidity of the stock. c) It establish…

Which of the following is not an argument for federal regulation of insurance? A

Which of the following is not an argument for federal regulation of insurance? A.There will be substantial improvement in efficiency due to fewer jurisdictional requirements B.The…

Which of the following is not an asset management ratio? A current ratio O A tot

Which of the following is not an asset management ratio? A current ratio O A total asset turnover ratio O A inventory turnover ratio 0 A fixed asset turnover ratio Johnny Applesee…

Which of the following is not an example of a family-owned business? A. Cargill

Which of the following is not an example of a family-owned business? A. Cargill B. Ford C. Proctor and Gamble D. Walgreens Which of the following is not a cause for growth problem…

Which of the following is not an example of a firm’s financing decision? ____ Se

Which of the following is not an example of a firm’s financing decision? ____ Selling a specific asset Borrowing from a bank Issuing common shares Paying dividend to shareholders …

Which of the following is not an instance in which the U.S. Trade Representative

Which of the following is not an instance in which the U.S. Trade Representative may take retaliatory action against a foreign country? a. The foreign country's policies violate t…

Which of the following is not an objective in the design of products and service

Which of the following is not an objective in the design of products and services? To bring new or revised products or services to market quickly. To reduce cost. To increase qual…

Which of the following is not considered a capital asset? a personal residence o

Which of the following is not considered a capital asset? a personal residence owned by an individual not in the business of buying and selling residential houses mutual fund shar…

Which of the following is not considered a relevant cash flow when deter- mining

Which of the following is not considered a relevant cash flow when deter- mining incremental cash flows for a new project? a. The use of floor space that is currently unused but a…

Which of the following is not considered a relevant concern in determining incre

Which of the following is not considered a relevant concern in determining incremental cash flows for a new product? a. The use of factory floor space which is currently unused bu…

Which of the following is not consistent with the \"hedgingprinciple\"? a. The t

Which of the following is not consistent with the "hedgingprinciple"? a. The time pattern of a financial liability should be set tomatch the time pattern of the cash flows generat…

Which of the following is not correct? A managed fund will outperform an index f

Which of the following is not correct? A managed fund will outperform an index fund only 60% of the time. Managed funds may be open-end funds or closed-end funds. A benchmark of a…

Which of the following is not required by FASB to be reported in the Comprehensi

Which of the following is not required by FASB to be reported in the Comprehensive Income? A decrease in the value of options the company bought to hedge a change in oil prices A …

Which of the following is not required by FASB to be reported in the Comprehensi

Which of the following is not required by FASB to be reported in the Comprehensive Income? A decrease in the value of options the company bought to hedge a change in oil prices A …

Which of the following is not required by FASB to be reported in the Comprehensi

Which of the following is not required by FASB to be reported in the Comprehensive Income? A decrease in the value of options the company bought to hedge a change in oil prices A …

Which of the following is not required to compute the standard deviation of a tw

Which of the following is not required to compute the standard deviation of a two-stock portfoli the variance in returns on each stock the amount invested in each stock the correl…

Which of the following is not required to compute the standard deviation of a tw

Which of the following is not required to compute the standard deviation of a two-stock portfolio? Answer the variance in returns on each stock the amount invested in each stock t…

Which of the following is not true about a stock dividend? With a stock dividend

Which of the following is not true about a stock dividend? With a stock dividend, the firm issues a percentage of outstanding stock as new shares to existing shareholders. The ove…

Which of the following is not true about generally accepted accounting principle

Which of the following is not true about generally accepted accounting principles (GAAP)? GAAP provide guidelines as to how to account for specific events impacting the financial …

Which of the following is not true about savings bonds? Interest payments are re

Which of the following is not true about savings bonds? Interest payments are received annually but are tax deductable. About t- in 6 Americans own a savings bond These are tax de…

Which of the following is not true regarding accounting income? (1) the term is

Which of the following is not true regarding accounting income? (1) the term is one used on Form 1041 to refer to income as computed under the applicable principal and income act …

Which of the following is not true regarding defined contribution pension plans?

Which of the following is not true regarding defined contribution pension plans? The employer bears all of the investment risk. Employees make regular contributions to the plan. B…

Which of the following is not true regarding letters of credit, CHOSE BEST ANSWE

Which of the following is not true regarding letters of credit, CHOSE BEST ANSWER A) They are issued by banks on behalf of the importer promising to pay the exporter. B? A revocab…

Which of the following is not true regarding mortgage backed securities? securit

Which of the following is not true regarding mortgage backed securities? securitization provides liquidy to the mortgage markets and makes it possible for banks to loan more money…

Which of the following is not true with respect to risk premium, generally speak

Which of the following is not true with respect to risk premium, generally speaking? 1) It will be greater than zero. 2) It will be greater than the risk free rate. 3) Increases w…

Which of the following is not true? a. Economic exposure is the degree to which

Which of the following is not true? a. Economic exposure is the degree to which a firm's present value of future cash flows can be influenced by exchange rate fluctuations. b. Tra…

Which of the following is not, historically, typical of the attitude of an analy

Which of the following is not, historically, typical of the attitude of an analyst where business trends are upward (or positive)? Tendency to apply higher multiples on past earni…

Which of the following is the best conclusion, given only the following informat

Which of the following is the best conclusion, given only the following information: ZYX Corporation's earnings after taxes have declined by 3.13% from the year earlier. During th…

Which of the following is the best measure to ensure that management decisions a

Which of the following is the best measure to ensure that management decisions are in the best interest of the stockholders? A. tie management compensation to the level of dividen…

Which of the following is the correct calculation for the required rate of retur

Which of the following is the correct calculation for the required rate of return under the CAPM? 15. a. beta (market risk premium) b. beta +market risk premium c. risk-free rate …

Which of the following is the firm allowing its equity, some of which was held p

Which of the following is the firm allowing its equity, some of which was held privately by managers and venture capital investors, to be publicly traded in stock markets for the …

Which of the following is the last day to modify a partnership agreement in orde

Which of the following is the last day to modify a partnership agreement in order for a special allocation to be respected A the extended due date of the tax return B the last day…

Which of the following is the most appropriate solution to the problem of rising

Which of the following is the most appropriate solution to the problem of rising carbon dioxide emissions in developed economies? Select one: A. Increase the export of low-wage ma…

Which of the following is the most correct (assume that preferred stock does not

Which of the following is the most correct (assume that preferred stock does not exist)? Return on Common Equity (ROCE) will always be higher than Return on Assets (ROA). Return o…

Which of the following is the most correct (assume that preferred stock does not

Which of the following is the most correct (assume that preferred stock does not exist)? Return on Common Equity (ROCE) will always be higher than Return on Assets (ROA). Return o…

Which of the following is the most difficult step in the capital budgeting proce

Which of the following is the most difficult step in the capital budgeting process? a. Estimating cash flows b. Applying the capital budgeting techniques c. Interpreting the resul…

Which of the following is the most inappropriate explanation on financial assest

Which of the following is the most inappropriate explanation on financial assests? A. Deposit of commercial banks at the federal reserve are federal funds B. The interest income f…