QuestionPart 1 of 1 – 100.0/ 100.0 PointsQuestion 1 of 20 5.0/ 5.0 PointsBonds are bought and sold in __________ markets.A. equityB. debtC. derivativesD. foreign exchangeQuestion 2 of 20 5.0/ 5.0 PointsOf the following, which group would be considered INTERNAL PLAYERS of the firm?A. the finance managerB. the shop foremanC. the human resources managerD. all of the aboveQuestion 3 of 20 5.0/ 5.0 PointsManaging the firm’s short-term financing activities is known a(n. __________ .A. capital budgetingB. capital structureC. accounts receivable managementD. working capital managementQuestion 4 of 20 5.0/ 5.0 PointsThe sale of “used” securities, where the financial asset is being traded from one individual to another and the proceeds do not go to the original issuer of the security, is said to take place in the __________ market. A. primaryB. moneyC. secondaryD. capitalQuestion 5 of 20 5.0/ 5.0 PointsIn agency theory, the owners of the business are referred to as __________, and the managers are referred to as __________ .A. bondholders, principalsB. stockholders, bondholdersC. agents, principalsD. principals, agentsQuestion 6 of 20 5.0/ 5.0 PointsThe sale of “new” securities, where the financial asset is being traded for the very first time, is said to take place in the __________ market.A. primaryB. moneyC. secondaryD. capitalQuestion 7 of 20 5.0/ 5.0 Points________ is the typical title of the corporate executive charged with determining the best repayment structure for borrowed funds to ensure timely repayment and sufficient cash for daily operations.A. Chief Executive Officer (CEO).B. Chief Financial Officer (CFO).C. ChairmanD. Chief Operating Officer (COO.Question 8 of 20 5.0/ 5.0 PointsOptions are bought and sold in ________ markets. A. equityB. debtC. derivativesD. foreign exchangeQuestion 9 of 20 5.0/ 5.0 PointsWhich of the following compensation packages is likely to work best for executive managers? A. Piece-mealB. Stock optionsC. Quarterly bonusesD. CommissionQuestion 10 of 20 5.0/ 5.0 PointsWhich of the following is NOT an activity of working capital management?A. establishing the firm’s receivable policiesB. establishing the firm’s payment policiesC. choosing the appropriate level of inventoryD. all of the above are working capital management activities.Question 11 of 20 5.0/ 5.0 PointsCurrencies are bought and sold in ________ markets.A. equityB. debtC. derivativesD. foreign exchangeQuestion 12 of 20 5.0/ 5.0 Points”Concern with the multinational elements of financial activities” best describes which of the four main areas of finance?A. investmentsB. international financeC. corporate financeD. financial institutions and marketsQuestion 13 of 20 5.0/ 5.0 PointsSale of new common stock in the primary market is regulated by the ________, and sale of used common on the secondary market is regulated by the ________.A. SEC, FDICB. SEC, SECC. FDIC, Federal ReserveD. Federal Reserve, SECQuestion 14 of 20 5.0/ 5.0 PointsOf the following, which is the most recent example of legislation passed by the federal government to deal with a major economic or highly visible corporate event?A. The Federal Deposit Insurance Corporation Improvement ActB. The Securities and Exchange ActC. The Sarbanes-Oxley ActD. The Securities ActQuestion 15 of 20 5.0/ 5.0 PointsStocks are bought and sold in __________ markets.A. equityB. debtC. derivativesD. foreign exchangeQuestion 16 of 20 5.0/ 5.0 PointsWhich of the following is NOT an example of an agency cost?A. paying an accounting firm to audit your financial statementsB. paying an insurance company to assure that building codes have been met for new constructionC. paying a landscaping firm to maintain your firm’s groundsD. all of the above are agency costsQuestion 17 of 20 5.0/ 5.0 PointsOf the following activities, which is MOST likely to be an interaction between the financial manager and the information systems manager?A. developing a system to bill customers, pay suppliers, and track inventoryB. costing of productsC. setting credit policiesD. determining the appropriate pricing of productsQuestion 18 of 20 5.0/ 5.0 Points__________ is the name given to the processes surrounding recognition of the principal-agent problem and ways to align agents with the interests of the principals.A. Principal theoryB. Interested party theoryC. Agency theoryD. Compensation process theoryQuestion 19 of 20 5.0/ 5.0 PointsWhich of the following is NOT an activity of a financial institution or market?A. bringing together buyers and sellers of financial assetsB. providing a market for the transaction of financial assetsC. providing information to buyers and/or sellers of financial assetsD. all are activities of financial institutions.Question 20 of 20 5.0/ 5.0 PointsFinancial institutions and markets __________ .A. are the organized financial intermediaries and the forums that promote the cycle of money.B. compose the set of financial activities that support the operations of a business.C. are centered on the purchase and sale of financial assets.D. are concerned only with the addition of a multinational element to all finance activities.