fundamentals of corporate finance 11th canadian edition By Stephen A. Ross Test bank
A) Tax matters.
B) Data processing functions.
C) Financial accounting.
D) Cost accounting.
E) Financial planning.
106) Which of the following does NOT correctly finish this sentence: In Canada, _________.
A) The OTC market does not have a central location.
B) Over-the-counter markets are operated as auction markets.
C) Financial markets function as both primary and secondary markets for debt and equity securities.
D) New issues of securities occur in primary markets.
E) Auction markets have a physical location.
107) The best definition of money markets is:
A) Financial markets where shares are bought and sold for cash.
B) Financial markets where long-term debt and equity securities are bought and sold.
C) Financial markets where foreign currency is bought and sold.
D) Financial markets where short-term debt securities are bought and sold.
E) Financial markets where long-term debt securities are bought and sold.
108) The best definition of REIT is:
A) A company that owns or finances income-producing real estate.
B) Financial markets where long-term debt and equity securities are bought and sold.
C) Financial markets where foreign currency is exchanged for real estate.
D) Financial markets where short-term debt securities are bought and sold.
E) Financial markets where long-term debt securities are bought and sold.
109) The best definition of derivative securities is:
A) An insurance policy that ensures underlying assets are secured.
B) Investment products whose value derives from the price of another, underlying, asset.
C) Financial markets where long-term debt and equity securities are bought and sold.
D) Creation of new securities or financial processes.
E) A compensation package for managers that ties their salary to the firm's share price.
110) A business formed by two or more individuals who each have unlimited liability for business debts is called a:
A) Corporation.
B) Sole proprietorship.
C) General partnership.
D) Limited partnership.
E) Limited liability company.
111) A business created as a distinct legal entity composed of one or more individuals or entities is called a:
A) Corporation.
B) Sole proprietorship.