Bender Day 5

Question 1

What factors would be relevant in determining the risk premium on a specific security?

Answer 1

1. Length of maturity
2. Relative liquidity
3. Relative seniority

note EPS is not relevant

MCQ-04332

Question 2

In the competitive model of supply and demand predicts thata surplus can only arise when:

Answer 2

Minimum price above the equilibrium

MCQ-03670

Question 3

Strategic Business Units are classified into different types of responsibility levels. What are the reasons for classifying SBUs as cost, revenue, investment, and profit?

Answer 3

1. Promote goal congruence
2. Isolate financial measurement for segment performance
3. Communicate segment goals to Managers for improved operational and financial control

MCQ-04002