Venture capital firms a) supply more than just money to small start-up firms; they also provide managerial advice to help the new business become established b) are typically composed of a handful of well-to-do individuals who put their own money into small new companies, in exchange for owning some portion of the firm c) sell bonds to the public d) make it difficult for small businesses to raise the funds they need to growFirms have two main sources of borrowing: a) banks and stock b) stock and bonds c) banks and bonds d) dividends and capital gainsWhich of the following characteristics relate to venture capital? a) Investing in a wide range of companies, to reduce the level of risk. b) Financial investments in new companies that are still relatively small in size but that have potential to grow substantially. c) Buying or selling stock based on estimates of the future expected profits. d) A direct payment from a firm to its shareholders.What is meant by initial public offering (IPO)? a) A firm owned by the people who run it on a day-to-day basis. b) When a firm first sells shares of stock to outside investors. c) Bonds issued by firms that wish to borrow. d) A direct payment from a firm to its shareholders.Ownership in a firm is represented by ; those who own some shares in a company are called a) stock, shareholders b) stock, board members c) voting rights, board members d) voting rights, shareholdersThe stock of a business firm is divided into a) individual shares b) voting shares c) non-voting shares d) individual stocksDuring the recent U.S. recession, some large automakers required bailouts from the federal government to avoid being forced into bankruptcy by their a) shareholders b) bondholders c) Chief Executive Officer d) Board of DirectorsWhich of the following would legally qualify you to be registered as a shareholder of Microsoft Corporation? a) buying the stock on the New York Stock Exchange generally through an account with a stock broker b) investing in bonds issued by the Microsoft c) ownership of debt issued by the firm d) a Microsoft employee given options to buy the firm's sharesWhich of the following is a feature that typically distinguishes a Certificate of Deposit from a checking account? a) generally pays more interest b) it is more liquid than a checking account c) automatic teller machine access is available for Certificate of Deposits d) pays less interest than a checking accountStock markets often experience a frenzy of buying or selling when investors are by following the current trend in a very actively traded company. a) momentum trading b) trading on fundamentals c) diversifying their portfolios d) decreasing investment yieldsVenture capitalists typically create wealth by investing in a start up firm, and then in the future their ownership in the firm's a) initial bond issue b) initial liquidity offering c) initial public offering d) initial private offeringWhen decisions need to be made in a public company, th.

1. Venture capital firms a) supply more than just money to small start-up firms; they also provide
managerial advice to help the new business become established b) are typically composed of a
handful of well-to-do individuals who put their own money into small new companies, in exchange
for owning some portion of the firm c) sell bonds to the public d) make it difficult for small
businesses to raise the funds they need to growFirms have two main sources of borrowing: a)
banks and stock b) stock and bonds c) banks and bonds d) dividends and capital gainsWhich of
the following characteristics relate to venture capital? a) Investing in a wide range of companies, to
reduce the level of risk. b) Financial investments in new companies that are still relatively small in
size but that have potential to grow substantially. c) Buying or selling stock based on estimates of
the future expected profits. d) A direct payment from a firm to its shareholders.What is meant by
initial public offering (IPO)? a) A firm owned by the people who run it on a day-to-day basis. b)
When a firm first sells shares of stock to outside investors. c) Bonds issued by firms that wish to
borrow. d) A direct payment from a firm to its shareholders.Ownership in a firm is represented by ;
those who own some shares in a company are called a) stock, shareholders b) stock, board
members c) voting rights, board members d) voting rights, shareholdersThe stock of a business
firm is divided into a) individual shares b) voting shares c) non-voting shares d) individual
stocksDuring the recent U.S. recession, some large automakers required bailouts from the federal
government to avoid being forced into bankruptcy by their a) shareholders b) bondholders c) Chief
Executive Officer d) Board of DirectorsWhich of the following would legally qualify you to be
registered as a shareholder of Microsoft Corporation? a) buying the stock on the New York Stock
Exchange generally through an account with a stock broker b) investing in bonds issued by the
Microsoft c) ownership of debt issued by the firm d) a Microsoft employee given options to buy the
firm's sharesWhich of the following is a feature that typically distinguishes a Certificate of Deposit
from a checking account? a) generally pays more interest b) it is more liquid than a checking
account c) automatic teller machine access is available for Certificate of Deposits d) pays less
interest than a checking accountStock markets often experience a frenzy of buying or selling when
investors are by following the current trend in a very actively traded company. a) momentum
trading b) trading on fundamentals c) diversifying their portfolios d) decreasing investment
yieldsVenture capitalists typically create wealth by investing in a start up firm, and then in the
future their ownership in the firm's a) initial bond issue b) initial liquidity offering c) initial public
offering d) initial private offeringWhen decisions need to be made in a public company, the
typically to deal with running the firm on a day-to-day basis. a) board of directors, vote on how b)
shareholders, vote on how c) board of directors, hire executives d) shareholders, hire
executivesLarger companies that are well established tend to prefer borrowing money to issuing
stock. When a well established company issues stock, a) it means that the company is on the
verge of bankruptcy b) it is a sign that there is dissension in the ranks of top management c) it is
an indication that the company is very successful d) the stock market takes this decision as a bad
sign and the price of the company's stock usually falls and current share holders have their
ownership dilutedOf the following forms of investment, is the least liquid. a) a bond b) a house c) a
mutual fund d) a bank accountWhat is meant by fundamentals trading? a) A fund that buys a
range of stocks or bonds from different companies, thus allowing an investor an easy way to
diversify. b) Buying or selling stock based on estimates of the future expected profits. c) Buying or

2. selling stock by following the current trend; that is, buying when the price seems to be rising, or
selling stock because the price seems to be falling. d) Investing in a wide range of companies, to
reduce the level of risk.