Chapter One pt 2

Question 1

To be successful, a financial institution is required to ______.

Answer 1

understand the cause of rise and fall of interest rates.

Question 2

The _____ has direct responsibility for managing the firm’s cash and marketable securities, planning how the firm is financed and when funds are raised.

Answer 2

treasurer

Question 3

The three principal forms of business organization are _____.

Answer 3

proprietorship, partnership, and corporation.

Question 4

In terms of numbers, 70-75 percent of businesses in the US are operated as _______.

Answer 4

proprietorship

Question 5

Which of the following specify the rules about the governance of a corporation?

Answer 5

bylaws