FI 3300 EXAM 1QUESTIONS AND ANSWERS - 100% VERIFIED -
LATEST 2026 /2027 GUARANTEED PASS
1. What is the study of the creation and management of wealth, involving
how investors, financial institutions, and company executives manage
money to make money? Finance
2. What field studies the determinants of interest rates, the regulation of
financial institutions, and the structure and function of various financial
markets? Financial markets and Institutions
3. What involves the determination and management of risk as individuals
and financial institutions make decisions concerning the allocation of
securities within their investment portfolios? Investments
4. What is the term for the financial management of a business
enterprise? Corporate Financial Management
5. What do investors do to earn an expected return? Purchase financial
assets (Lend money)
6. What is a business that is 100% owned and often operated by a single
individual called? Sole Proprietorship
7. What are the pros and cons of a Sole Proprietorship? Pros: Easy to
start, fewer government regulations. Cons: Difficult to raise large amounts
of capital, personal liability to business debt.
8. What is a business structure that is essentially like a Sole
Proprietorship but owned and operated by two or more individuals
called? Partnership
9. What are the pros and cons of a Partnership? Pros: Multiple partners
can contribute more capital than a Sole Proprietorship, easy to start, few
government regulations. Cons: Unlimited personal liability, difficult
transfer of ownership.
10. What is a legal entity separate from its owner called? Corporation
11. What are the pros and cons of a Corporation? Pros: Limited liability,
ability to raise large capital, easy transfer of ownership. Cons: Heavy
government regulation, costly to establish.
LATEST 2026 /2027 GUARANTEED PASS
1. What is the study of the creation and management of wealth, involving
how investors, financial institutions, and company executives manage
money to make money? Finance
2. What field studies the determinants of interest rates, the regulation of
financial institutions, and the structure and function of various financial
markets? Financial markets and Institutions
3. What involves the determination and management of risk as individuals
and financial institutions make decisions concerning the allocation of
securities within their investment portfolios? Investments
4. What is the term for the financial management of a business
enterprise? Corporate Financial Management
5. What do investors do to earn an expected return? Purchase financial
assets (Lend money)
6. What is a business that is 100% owned and often operated by a single
individual called? Sole Proprietorship
7. What are the pros and cons of a Sole Proprietorship? Pros: Easy to
start, fewer government regulations. Cons: Difficult to raise large amounts
of capital, personal liability to business debt.
8. What is a business structure that is essentially like a Sole
Proprietorship but owned and operated by two or more individuals
called? Partnership
9. What are the pros and cons of a Partnership? Pros: Multiple partners
can contribute more capital than a Sole Proprietorship, easy to start, few
government regulations. Cons: Unlimited personal liability, difficult
transfer of ownership.
10. What is a legal entity separate from its owner called? Corporation
11. What are the pros and cons of a Corporation? Pros: Limited liability,
ability to raise large capital, easy transfer of ownership. Cons: Heavy
government regulation, costly to establish.
