FI 302 EXAM #1 (WHALEY) Questions
and All Detailed Answers 2026-2027
Updated.
the organized financial intermediaries and the forums that promote the cycle of money is a
good definition of
investments
corporate finance
financial institutions and markets
international finance - Answer financial institutions and markets
in agency theory, the managers of the business are referred to as ____, and the owners are
referred to as ______.
bondholders, principals
principals, agents
stockholders, bondholders
agents, principals - Answer agents, principals
at the most basic level, financial intermediaries
track and report interest rates
report all financial transactions to the federal government
effect a transfer of wealth in society
move money from lenders to borrowers and back again - Answer move money from lenders to
borrowers and back again
which of the following is NOT an advantage of a sole proprietorship?
quick decision making
limited liability
the owner receiving all the after-tax profit
all are advantages - Answer limited liability
, financial markets can be classified as
type of assets traded
owner of the financial asset
maturity of the financial asset
all of the above - Answer all of the above
The sale of "new" securities, where the financial asset is being traded for the very first time, is
said to take place in the ______ market.
primary
secondary
capital
money - Answer primary
a _______ has limited liability, is a legal entity, and has the greatest potential to raise capital.
general partnership
corporation
sole proprietorship
limited partnership - Answer corporation
the area of finance concerned with activities such as borrowing funds to ensure a business has
sufficient cash for operations and short-term liabilities
investments
corporate finance
international finance
working captial management - Answer working capital management
net income is _______
not cash flow
earnings before interest and taxes
the increase or decrease in cash flow for the period
and All Detailed Answers 2026-2027
Updated.
the organized financial intermediaries and the forums that promote the cycle of money is a
good definition of
investments
corporate finance
financial institutions and markets
international finance - Answer financial institutions and markets
in agency theory, the managers of the business are referred to as ____, and the owners are
referred to as ______.
bondholders, principals
principals, agents
stockholders, bondholders
agents, principals - Answer agents, principals
at the most basic level, financial intermediaries
track and report interest rates
report all financial transactions to the federal government
effect a transfer of wealth in society
move money from lenders to borrowers and back again - Answer move money from lenders to
borrowers and back again
which of the following is NOT an advantage of a sole proprietorship?
quick decision making
limited liability
the owner receiving all the after-tax profit
all are advantages - Answer limited liability
, financial markets can be classified as
type of assets traded
owner of the financial asset
maturity of the financial asset
all of the above - Answer all of the above
The sale of "new" securities, where the financial asset is being traded for the very first time, is
said to take place in the ______ market.
primary
secondary
capital
money - Answer primary
a _______ has limited liability, is a legal entity, and has the greatest potential to raise capital.
general partnership
corporation
sole proprietorship
limited partnership - Answer corporation
the area of finance concerned with activities such as borrowing funds to ensure a business has
sufficient cash for operations and short-term liabilities
investments
corporate finance
international finance
working captial management - Answer working capital management
net income is _______
not cash flow
earnings before interest and taxes
the increase or decrease in cash flow for the period
