Bcor 2204 Quiz 3 Updated Actual Questions And Correct Answers

BCOR 2204 QUIZ 3 UPDATED ACTUAL QUESTIONS
AND CORRECT ANSWERS

Question:
1. Debt

Answer:
includes all borrowing incurred by a
firm, including bonds, and is repaid
according to a fixed schedule of payments.

Question:
2. Equity

Answer:
consists of funds provided by the
firm's owners (investors or stockholders)
that are repaid subject to the firm's performance.

Question:
3. Which has a voice in management debt or equity?

Answer:
Equity

Question:
4. Which type of capital has an interest deduction

Answer:
Debt

Question:
5. Does debt or equity have a maturity?

Answer:
Debt has a stated maturity

Question:
6. Which is senior in claims on assets& income?

Answer:
Debt

, Question:
7. Who gets claims first stockholders or bondholders?

Answer:
Bondholders (creditors)

Question:
8. Which is riskier stocks or bonds?

Answer:
Stocks

Question:
9. equity's maturity date

Answer:
There is none, it's a permanent form of financing.

Question:
10. Interest payments to debt-holders are treated as...

Answer:
tax deductible expenses

Question:
11. Are dividend payments tax deductible?

Answer:
No

Question:
12. 3 types of stock ownership

Answer:
Private
Closely owned (small group)
Publicly owned

Question:
13. Authorized shares

Answer:
shares of common stock that a firm's corporate charter allows it to issue