Question

Question 1
Who issues tax exempt municipal bonds?

a. local commercial banks
b. local credit unions
c. state and local governments
Selected:d. federal and state governmentsThis answer is incorrect.
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Question 2
Which of the following is NOT an advantage of sole proprietorship?

Selected:a. There are almost no requirements to start up a sole proprietorship.This answer is incorrect.
b. The owner makes all the decisions.
c. The owner keeps all the profits.
d. The owner may be held liable for the actions of business partner(s).
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Question 3
To get a picture of a business’ investing, financing, and operating activities, you should look at its

a. statement of cash flows.
Selected:b. balance sheet.This answer is incorrect.
c. dividends.
d. income statement.
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Question 4
What kind of fund collects and invests income for lifetime payments to recipients who qualify based on years of service/contributions?

a. credit union fund
b. insurance fund
c. pension fund
Selected:d. 401(k) fundThis answer is incorrect.
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Question 5
Three ways people can save money with little risk include _____.

a. savings account, buying stock, buying CD's
Selected:b. buying short term treasuries, contributing to a pension fund, buying stockThis answer is incorrect.
c. savings account, buying CD's, buying short term treasuries
d. buying short term treasuries, contributing to a 401(k), buying CD's
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Question 6
When making a risky investment, investors usually expect ____.

Selected:a. to receive a higher rate of returnThis answer is correct.
b. to pay a higher purchase price
c. to receive lower compensation
d. to have an earlier maturity date
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Question 7
The Federal Reserve _____ .

Selected:a. was established in 1907.This answer is incorrect.
b. is the nation's first bank.
c. regulates the stock market.
d. is the nation's central bank.
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Question 8
Limited life applies to

Selected:a. corporations.This answer is incorrect.
b. multinationals.
c. nonprofit organizations.
d. sole proprietorships.
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Question 9
What is the main advantage of a mutual fund for an investor?

Selected:a. It avoids market risk.This answer is incorrect.
b. It offers diversification in investment.
c. It has a set maturity date.
d. It can be sold at a profit.
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Question 10
A business' net income is defined as

a. revenue minus expenses.
Selected:b. sales plus expenses.This answer is incorrect.
c. total dividends minus retained earnings.
d. total income before taxes.

Answer 1

question 1 = C

Answer 2

I thinkkk Question 1: c. state and local governments Question 2: d. The owner may be held liable for the actions of business partner(s) Question 3: a. statement of cash flows Question 4: c. pension fund Question 5: c. savings account, buying ​CD's, buying short term ​treasuries Question 6: a. to receive a higher rate of return Question 7: d. is the ​nation's central bank Question 8: d. sole proprietorships Question 9: b. It offers diversification in investment Question 10: a. revenue minus expenses