Exam questions 2 Flashcards
What is a venture capitalist?
A venture capitalist is an investor who provides capital to startup ventures or supports small companies that wish to expand → usually with above average risk
- They can release their investment by selling their shares following flotation on the stock exchange
- They may sit on the board to secure their investment
Where would financial instruments with maturity is of less than one year be traded?
The money market
- What is collusion?
- What is the penalty if found guilty of collusion?
- Collusion is an agreement between two or more parties to limit competition by deceiving, misleading or defrauding others.
- Up to 10% annual worldwide revenue
According to IASB’s conceptual framework for business reporting what are…
- The two fundamental qualitative characteristics that financial statements must have to be relied upon by investors?
- The enhancing qualitative characteristics that financial statements can have?
- Relevance & faithfulness of representation
- Understandability, compatibility, verifiability, timeliness
Give the three main components of the companies control system
- The measurement of actual performance comparison against targets
- Establishment of standards or targets to express plan performance
- Follow-up actions to correct adverse results or exploit favourable variances
Give 3 market imperfections associated with financial markets
- information asymmetry
- transaction costs
- Insider dealing
With a natural monopoly will…
- Fixed costs be high or low
- marginal costs be high or low
- High
- Low
What does the marginal propensity to consume measure?
- The relationship between changes in income and changes in consumption
What is the main economic problem facing or national economy?
The allocating of scarce resources
What models are best for establishing a product portfolio?
- BCG matrix
- Products life cycle
What is a merchant bank?
Another term for a secondary bank
What risk and return is expected from…
- Long term bank loans?
- Short term bank loans?
- High priority personal finance objectives?
- low risk and high return (Morgages)
- High risk and high return
- Low risk and low returns
What % of directors are expected to attend AGMs?
100%
