FIN630 Quiz # 2 Nov 2010

Question # 15 of 15 ( Start time: )         Total Marks: 1

Which of the following statements highlights the financial condition of a company at any single point of time?

Select correct option:

Income Statement

Cash Flow Statement

Balance Sheet

Statement of Owner’s Equity

Question # 14 of 15 ( Start time:)          Total Marks: 1

Which of the following is the theories searching the patterns in randomness?

Elliott wave theory

Chaos theory

Portfolio theory

Valuation theory

Question # 13 of 15 ( Start time:)          Total Marks: 1

More investors are using technical analysis now than in earlier periods because: 

Select correct option:

Investors are able to know the quantitative calculations of technical analysis

More business schools are now teaching technical analysis 

The Internet makes more data available to track stock prices 

There is now more empirical evidence supporting technical analysis 

Question # 12 of 15 ( Start time:)          Total Marks: 1

All of the following steps are involved in estimating the earnings stream, EXCEPT:

Estimating corporate sales

Estimating corporate earnings before taxes

Estimating corporate liabilities and assets

Estimating corporate earnings after taxes

Question # 11 of 15 ( Start time:)          Total Marks: 1

Buying power of an investor is calculated as:

Select correct option:

Assets – liabilities

Equity – debt balance

Short term debt – long tem debt

Current assets – current liabilities

Question # 10 of 15 ( Start time:)          Total Marks: 1

Which of the following terms refer to the recurring and fluctuating levels of economic activity that an economy experiences over a long period of time?

Select correct option:

Claims cycle

Reaction cycle

Business cycle

Capital cycle

Question # 9 of 15 ( Start time:)            Total Marks: 1

Which of the following ratios indicate the ability of a company to repay its current liabilities from it operating cash flow?

Select correct option:

Price to sales ratio

Price to book value ratio

Leverage ratio

Debt coverage ratio

Question # 8 of 15 ( Start time:)            Total Marks: 1

Which of the following is a characteristic of cyclical stock?

Select correct option:

Their value is tied with the overall state of the national economy.

They are low-priced, speculative and risky securities.

They have stable earnings and no extensive liabilities

None of the given options

Question # 7 of 15 ( Start time:)            Total Marks: 1

The S&P 500 Composite Stock Index is favored by most institutional investors and money managers. What does S&P stands for?

Select correct option:

Sophisticated and Poised

Standard and Poor

Stylish and Permanent

Sojourn and Perennial

Question # 6 of 15 ( Start time:)            Total Marks: 1

Cash flow statement in conjunction with which of the following statements provides information on liquidity, viability and financial adaptability of company?

Select correct option:

The Income Statement

The Cash Flow Statement

The Balance Sheet

The Statement of Owner’s Equity

Question # 5 of 15 ( Start time:)            Total Marks: 1

Which of the following take place at the declining stage of the industry life cycle?

Select correct option:

Firm operations get more stable and dependable

Rapid growth in demand and subsequent profits occur

Costs get stable rather than decreasing or increasing

Sales growth decline as new products are developed

Question # 4 of 15 ( Start time:)            Total Marks: 1

Which of the following ratios are of more concern for the shareholders? 

Select correct option:

Liquidity and profitability 

Liquidity and leverage

Profitability and activity

Profitability and leverage 

Question # 3 of 15 ( Start time:)            Total Marks: 1

Which of the following function removes the fear of buying or selling at rip off price?

Select correct option:

Fair pricing function

Economic function

Exchange function

Continuous pricing function

Question # 2 of 15 ( Start time:)            Total Marks: 1

Which of the following is the source of income for members or brokers?

Select correct option:

Copyright fee

Application fee

Fixed cost fee

Trading fee

Question # 1 of 15 ( Start time:)            Total Marks: 1

Which of the following take place at the expansion stage of the industry life cycle?

Select correct option:

Firm operations get more stable and dependable

Rapid growth in demand and subsequent profits occur

Costs get stable rather than decreasing or increasing

Sales growth decline as new products are developed