FNAN 522 CERTIFICATION EVALUATION
QUESTIONS AND CORRECT ANSWERS
PRACTICE PACK
●● Which of the following is NOT a cash equivalent?
Answer: A government bond that matures in four months.
●● Which of the following occurred during the financial crisis of 2007-
2008?
Answer: All of these answers
●● Which of the following statements regarding shareholder and market
value is correct?
Answer: The idea of maximizing market value is related to the idea of
maximizing shareholder value.
●● How is finance used in organizations?
Answer: All of these answers.
●● Which of the following terms describes the protection of personal
assets stemming from the corporate structure?
Answer: limited liability
, ●● Which of the following is a factor that contributes to the conflict of
interest between a company's bondholders and its shareholders?
Answer: All of these answers
●● Which of the following is a legal characteristic of a general
partnership?
Answer: There must be at least two business owners.
●● Which of the following is a type of financial market?
Answer: All of these answers
●● Which of the following is an accurate characteristic of a sole
proprietorship?
Answer: The owner is personally liable for the business's debt and
obligations.
●● A company issues a bond with the provision that it may pay off the
debt early. This bond is subject to which type of risk?
Answer: Prepayment risk.
●● What will $247,000 grow to be in 9 years if it is invested today in an
account with an annual interest rate of 11%?
Answer: 631,835.12
QUESTIONS AND CORRECT ANSWERS
PRACTICE PACK
●● Which of the following is NOT a cash equivalent?
Answer: A government bond that matures in four months.
●● Which of the following occurred during the financial crisis of 2007-
2008?
Answer: All of these answers
●● Which of the following statements regarding shareholder and market
value is correct?
Answer: The idea of maximizing market value is related to the idea of
maximizing shareholder value.
●● How is finance used in organizations?
Answer: All of these answers.
●● Which of the following terms describes the protection of personal
assets stemming from the corporate structure?
Answer: limited liability
, ●● Which of the following is a factor that contributes to the conflict of
interest between a company's bondholders and its shareholders?
Answer: All of these answers
●● Which of the following is a legal characteristic of a general
partnership?
Answer: There must be at least two business owners.
●● Which of the following is a type of financial market?
Answer: All of these answers
●● Which of the following is an accurate characteristic of a sole
proprietorship?
Answer: The owner is personally liable for the business's debt and
obligations.
●● A company issues a bond with the provision that it may pay off the
debt early. This bond is subject to which type of risk?
Answer: Prepayment risk.
●● What will $247,000 grow to be in 9 years if it is invested today in an
account with an annual interest rate of 11%?
Answer: 631,835.12
