What is a company with lots of debt called?
A) indentured
B) unsecured
C) heavily leveraged
D) collateraled
E) bankrupt
Answer: C
Explanation: C) A company with lots of debt is called heavily leveraged.
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The _____ of a stock reflects stockholders’ confidence.
A. par value B. book value C. earnings per share D. price/earnings ratio E. dividend yield
The business market consists of all the organizations that acquire goods and services used in the production of other products or services that are sold, rented, or supplied to others. List the major industries that make up the business market
What will be an ideal response?
Should nonfinancial indicators be used for assessing fraud risk? Why or why not?
a. No. A company's financial statement data need not always be consistent with its nonfinancial measures. b. Yes. Management can more easily manipulate financial numbers but finds it harder to keep all the nonfinancial information consistent with the financial information. c. No. Nonfinancial measures are indicative of physical assets alone. d. Yes. Management attempts to commit fraud first show up in these indicators. Financial statement fraud is an attempt to cover up those attempts.
One of the principal regulatory components of the 1933 Act is ________.
A. the registration statement B. antifraud provisions C. the prospectus D. securities provisions