Financial Management - Study Mode
[#1071] Corporate associations who have common bonds being employees of same firm are classified as
Correct Answer
(A) credit unions
Explanation
Solution: Corporate associations who have common bonds being employees of same firm are classified as credit unions. A credit union is a type of financial cooperative that provides traditional banking services.
[#1072] Set of rules made by corporation founders such as directors election procedure are classified as
Correct Answer
(B) by laws
Explanation
Solution: Set of rules made by corporation founders such as directors election procedure are classified as by laws. Corporate bylaws (sometimes spelled "by-laws") are the rules of a corporation, established by the board of directors during the process of starting a corporation. When a corporation is formed (a process called incorporation), one of the first tasks of the new corporation is to have corporate bylaws formed.
[#1073] Risk of doing business in particular country and arises from foreign investments is classified as
Correct Answer
(A) country risk
Explanation
Solution: Risk of doing business in particular country and arises from foreign investments is classified as country risk. Country risk is the risk that a foreign government will default on its bonds or other financial commitments. Country risk also refers to the broader notion of the degree to which political and economic unrest affect the securities of issuers doing business in a particular country.
[#1074] Markets which bring closer institutions needing funds and with surplus funds are classified as
Correct Answer
(A) financial markets
Explanation
Solution: Markets which bring closer institutions needing funds and with surplus funds are classified as financial markets. A financial market is a broad term describing any marketplace where trading of securities including equities, bonds, currencies, and derivatives occur.
[#1075] Process of selling company stock at large to general public and get lending from banks is classified as an
Correct Answer
(A) initial public offering
Explanation
Solution: Process of selling company stock at large to general public and get lending from banks is classified as an initial public offering. An initial public offering (IPO) refers to the process of offering shares of a private corporation to the public in a new stock issuance. Public share issuance allows a company to raise capital from public investors.