placeholder image to represent content

Lecture 2 Quizzes

Quiz by Chi Truong

Our brand new solo games combine with your quiz, on the same screen

Correct quiz answers unlock more play!

New Quizalize solo game modes
5 questions
Show answers
  • Q1
    Which of the following business forms implies that the owners have limited liability for business debts?
    None of the above
    Partnership
    Sole traders
    Company
    90s
  • Q2
    Which of the following is CORRECT?
    When a company is liquidated, the proceeds from the company’s asset sales will be used to satisfy the obligations to senior bond holders first, then junior bond holders. The amount that remains after all obligations to bond holders having been satisfied will go to stockholders
    When a company is liquidated, the proceeds from the company’s asset sales will be used to satisfy the obligations to preference share holders. The remaining amount will go to senior bond holders and then junior bond holders.
    When a company is liquidated, the proceeds from the company’s asset sales will be used to satisfy the obligations to stockholders. The amount that remains after all obligations to stockholders having been satisfied will go to senior bond holders and then junior bond holders
    When a company is liquidated, the proceeds from the company’s asset sales will be shared among stockholders only.
    90s
  • Q3
    Which of the following is INCORRECT?
    Bond covenants increase the protection for bond holders. Investors are therefore willing to pay higher prices for the bonds. Bond covenants increase the bond price.
    Most bond issues have bond covenants. However, it is often found that bond covenants do not have important effect on bond prices
    Managers who work to maximize the wealth of shareholders may take on investments that are too risky for bond holders. When those investments work out well, most of the benefits will go to shareholders. When the investments do not work out, it is the bondholders who lose their capital.
    Bond covenants provide protection to bond holders. When these covenants are violated, bond holders are allowed to redeem their principals.
    90s
  • Q4
    Which of the following is INCORRECT?
    With a callable bond, the issuer can repurchase the bond at a pre-specified price before maturity if he/she wants
    None of the above is incorrect
    With a convertible bond, the bond holder can exchange the the bond for a number of shares of the issuer if he/she wants
    Adding the convertible feature to a bond will increase the value of the bond while adding the callable feature to a bond will decrease the value of the bond.
    90s
  • Q5
    Which of the following is INCORRECT?
    Eurodollar bonds are bonds denominated in US dollar and sold inside US
    Bulldog bonds are bonds denominated in British pound and sold in UK by non-UK issuers
    Yankee bonds are bonds that are denominated in US dollar and sold in US by non-US issuers
    Samurai bonds are bonds that are denominated in Yen currency and are sold in Japan by non-Japanese issuers
    90s

Teachers give this quiz to your class