QCM 2 Flashcards
A factory
Is a Real Asset
Is a Financial Asset
Is a Real Asset
A share of Amazon
Is a real asset
Is a Financial asset
Is a Financial asset
A brand name
Is a real asset
Is a Financial asset
Is a real asset
A mortgage
Is a real asset
Is a Financial asset
Is a Financial asset
The liability of sole proprietors is The liability of sole proprietors is
limited to the amount of their limited to the amount of their
investment in the company
True
False
False
A stock market is where ownership A stock market is where ownership
shares or ‘equities’ are traded.
True
False
True
A financial intermediary invests mainly A financial intermediary invests mainly
in real assets
True
False
False
A major disadvantage of partnerships A major disadvantage of partnerships
is that they have double taxation on is that they have double taxation on
profits
True
False
False
A company’s overall goal is to make A company’s overall goal is to make
profits
True
False
False
The two main types of financing The two main types of financing
crypto and real estate
True
False
False
When companies raise equity When companies raise equity
financing, they sell shares in the financing, they sell shares in the
secondary market
True
False
False
Financial markets allow investors and Financial markets allow investors and
businesses to:
reduce and manage reduce and manage
risk risk 0 votes 0 votes
✓✓
gamble on certain gamble on certain
events (elections, events (elections,
climate or weather, climate or weather,
war and peace war and peace
outcomes) outcomes)
0 votes 0 votes
✓✓
obtain information obtain information
useful for business useful for business
decisions. decisions.
0 votes 0 votes
acquire intangible acquire intangible
assets assets 0 votes 0 votes
✓✓ transfer cashflow in transfer cashflow in
time. time. 0 votes 0 votes
✓✓
quickly and cheaply quickly and cheaply
buy and sell buy and sell
financial securities
