QUESTION Which of the following, if true, LEAST supports the decision to sell BoxCorps and purchase Excelsior as a prudent financial move? A) BoxCorps recently split its shares by two-for-one, so the club now owns twice as many shares of its stock as before. B) The club owns preferred stock of BoxCorps, while the shares […]
QUESTION Which of the following, if true, BEST supports the decision to sell BoxCorps and purchase Excelsior as a prudent financial move? A) BoxCorps has consistently underperformed, compared with stocks in its industry. B) Most of Brandon’s previous recommendations have proved to be profitable for the club. C) The stock of Krebs GmbH, a European […]
QUESTION The other members agree with Brandon’s logic and vote to sell BoxCorps and buy Excelsior. All of the following, EXCEPT which one, could be a potential result? A) Excelsior fails as a business, and the club loses all of the money it invested in it. B) Excelsior is bought out by a bigger medical […]
QUESTION Business law is the legal framework in which business is conducted. Indicate whether the statement is true or false. ANSWER Answer: TRUE Explanation: Business is done with the presumption that relevant laws are being followed.
QUESTION By what formula are the financial earnings of a mutual fund distributed to its investors? What will be an ideal response? ANSWER Answer: Investors in a mutual fund share in the returns according to the proportion of their contributions to the fund. Explanation: Investors share in the returns of a mutual fund in […]
QUESTION Which of the following, if true, most clearly strengthens Karola’s point of view? A) E-Trade is somewhat quicker than Merrill Lynch in putting in orders. B) Several other managers in the same firm use E-Trade and are satisfied with the quality of the investments they make. C) E-Trade offers online chats with an experienced […]
QUESTION Which of the following, if true, most directly supports Latisha’s position, that handling the Textmoor IPO could be risky for the bank? A) Several other tablets are already being sold by major companies in the competitive tablet market. B) Olympic Daniels failed to sell all the shares of the last IPO it handled, taking […]
QUESTION How is the concept of time important to commodities trading? What will be an ideal response? ANSWER Answer: Commodities trading is very future-oriented. Futures contracts are a main element of this process. In these contracts, the trader agrees to buy a specific amount of a commodity at a certain price at a certain […]
QUESTION Which allows an investor to practice the theory of a security limit order: a mutual fund or an exchange-traded fund? Explain why. What will be an ideal response? ANSWER Answer: Exchange-traded funds can be sold throughout the day, so they allow investors to buy or sell ETF shares when they reach a specified […]
QUESTION Devonte recently started his first job after college and knows he should be thinking about saving for retirement. What type of investment strategy is best for his goals? What will be an ideal response? ANSWER Answer: Buying and holding investments is a good strategy for people investing for the long term and people […]
