FNAN 522 COMPREHENSIVE TEST PAPER
QUESTIONS AND ANSWERS VERIFIED
GRADED A+
●● What is the primary goal of the Sarbanes-Oxley act according to the
Module 1 video-"The Goal of Financial Management"?
Answer: a. To protect investors from corporate abuse.
b. To help maintain a primary bull market.
c. To protect corporate executives from frivolous shareholder lawsuits.
d. To prevent a secular bear market.
ANSWER: a. To protect investors from corporate abuse.
●● Which of the following is an accurate characteristic of a sole
proprietorship?
Answer: a. The owner is personally liable for the business's debt and
obligations.
b. There is more than one answer.
c. A sole proprietorship typically elects board members for staggered
terms.
d. The owner must file for a separate tax return for the business.
ANSWER: a. The owner is personally liable for the business's debt and
obligations.
, ●● Which of the following is a source of agency costs in an
organization?
Answer: a. Parties associates with the organization have different risk
preferences.
b. The people who make the day-to-day decisions are not the owners.
c. All of these answers.
d. The managers of the organization have different objectives than the
other shareholders.
ANSWER: c. All of these answers.
●● Which of the following occurred during the financial crisis of 2007-
2008?
Answer: a. All of these answers.
b. Several major institutions failed or were subject to government
takeover.
c. A currency crisis, with investors transferring their wealth to countries
with stronger currencies.
d. Significant declines in consumer wealth and prolonged
unemployment.
ANSWER: A. All of these answers.
●● Which of the following terms describes the protection of personal
assets stemming from the corporate structure?
Answer: a. simple transference
QUESTIONS AND ANSWERS VERIFIED
GRADED A+
●● What is the primary goal of the Sarbanes-Oxley act according to the
Module 1 video-"The Goal of Financial Management"?
Answer: a. To protect investors from corporate abuse.
b. To help maintain a primary bull market.
c. To protect corporate executives from frivolous shareholder lawsuits.
d. To prevent a secular bear market.
ANSWER: a. To protect investors from corporate abuse.
●● Which of the following is an accurate characteristic of a sole
proprietorship?
Answer: a. The owner is personally liable for the business's debt and
obligations.
b. There is more than one answer.
c. A sole proprietorship typically elects board members for staggered
terms.
d. The owner must file for a separate tax return for the business.
ANSWER: a. The owner is personally liable for the business's debt and
obligations.
, ●● Which of the following is a source of agency costs in an
organization?
Answer: a. Parties associates with the organization have different risk
preferences.
b. The people who make the day-to-day decisions are not the owners.
c. All of these answers.
d. The managers of the organization have different objectives than the
other shareholders.
ANSWER: c. All of these answers.
●● Which of the following occurred during the financial crisis of 2007-
2008?
Answer: a. All of these answers.
b. Several major institutions failed or were subject to government
takeover.
c. A currency crisis, with investors transferring their wealth to countries
with stronger currencies.
d. Significant declines in consumer wealth and prolonged
unemployment.
ANSWER: A. All of these answers.
●● Which of the following terms describes the protection of personal
assets stemming from the corporate structure?
Answer: a. simple transference
