Preassessment score C214

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School

Western Governors University *

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Course

C214

Subject

Finance

Date

Feb 20, 2024

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pdf

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Uploaded by MagistrateUniverse27475

2/11/24, 4:29 PM WGU Student Portal https://my.wgu.edu/coaching-report/preassessment-report/v1/studentPidm/11147972/assessmentCode/PVCC/testDate/1707678554 1/18 PRE-ASSESSMENT: FINANCIAL MANAGEMENT (PVCC) Attempt #1 Status: Passed 1. How can a private ±rm appropriately maximize shareholder value? YOUR ANSWER CORRECT ANSWER By increasing the ±rm’s stock price By reducing the ±rm's labor By making decisions that keep the control of the business with the owners 2. Why are American regulators focused on international investing in a global marketplace? YOUR ANSWER CORRECT ANSWER Because international investing in a global marketplace is the concern of American investors Because an exclusively domestically focused regulatory approach is still effective Because weaving international concerns into domestic policy is cost-effective Because other jurisdictions have the same priorities and solutions as the United States 3. What is one of the two basic types of ±nancial instruments? YOUR ANSWER CORRECT ANSWER Checking accounts Bonds Euros Hedge funds 4. What are the likeliest outcomes if a company outsources the manufacturing of its products to a foreign country? Choose 2 answers. YOUR ANSWER CORRECT ANSWER Consumer prices will decrease. Tariffs will decrease. Domestic wages will increase. Production capacity will decrease. Domestic employment will decrease. WGU Knowledge Center Accessibility Policy Accessibility Settings

2/11/24, 4:29 PM WGU Student Portal https://my.wgu.edu/coaching-report/preassessment-report/v1/studentPidm/11147972/assessmentCode/PVCC/testDate/1707678554 2/18 5. What do the content and structure of a balance sheet report? YOUR ANSWER CORRECT ANSWER The gains and losses at a point in time The revenues and expenses for a period of time The assets, liabilities, and equity at a point in time The expenses, assets, and liabilities for a period in time 6. A company reported an increase in accounts receivable of $5,000 during the recent period. Half of this amount is expected to be collected next period. How will this change in accounts receivable affect the cash ²ows from the operating activities section? YOUR ANSWER CORRECT ANSWER The change will decrease cash ²ows from operations by $2,500. The change will increase cash ²ows from operations by $2,500. The change will increase cash ²ows from operations by $5,000. The change will decrease cash ²ows from operations by $5,000. 7. Which statement accurately explains the recognition of revenues and expenses under accounting income and income for tax purposes ? YOUR ANSWER CORRECT ANSWER Revenue and expenses recognized must be matched with assets. Revenue and expenses recognized must be matched with liabilities. Revenues and expenses may be recognized in one period for accounting income purposes and in a different period for income tax purposes. Revenues and expenses are always recognized in the same period for accounting income purposes and income for tax purposes. 8. Selected Data for 20x2 for ABD Inc. Net Income $ 1,000 Depreciation Expense $ 300 Change in Operating Assets $ 600 Change in Net Property, Plant, and Equipment $ 5,000 Changes in Long-Term Liabilities $ 1,000 Dividends Paid $ 200 What is this ±rm’s cash ²ow from investments, using the data above and assuming no asset disposals? YOUR ANSWER CORRECT ANSWER $5,000 in²ow $5,000 out²ow Accessibility Policy Accessibility Settings

2/11/24, 4:29 PM WGU Student Portal https://my.wgu.edu/coaching-report/preassessment-report/v1/studentPidm/11147972/assessmentCode/PVCC/testDate/1707678554 3/18 YOUR ANSWER CORRECT ANSWER $5,300 in²ow $5,300 out²ow 9. What is the basic equation for a balance sheet? YOUR ANSWER CORRECT ANSWER Revenue + expenses = income Assets = Liabilities − Equity Revenue + Assets = Equity Assets = Liabilities + Equity 10. What do cash ²ows from investing activities generally relate to? YOUR ANSWER CORRECT ANSWER A ±rm’s debt and equity transactions A ±rm’s purchase and sale of long-term assets A ±rm’s sale of goods and services A ±rm’s non-cash transactions 11. Which transaction is re²ected in cash ²ow from operating activities? YOUR ANSWER CORRECT ANSWER Amortization expense Gain or loss on the sale of property, plant, and equipment Credit sales to customers Cash sales to customers 12. What does free cash ²ow represent? YOUR ANSWER CORRECT ANSWER Cash ²ows from operating activities Cash balance at the end of the period Cash available for distribution after funding required reinvestment Cash available for dividends 13. An analyst is comparing the ratios of two ±rms and needs to address timing differences. What is an example of a timing difference between these two ±rms? Accessibility Policy Accessibility Settings

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2/11/24, 4:29 PM WGU Student Portal https://my.wgu.edu/coaching-report/preassessment-report/v1/studentPidm/11147972/assessmentCode/PVCC/testDate/1707678554 4/18 YOUR ANSWER CORRECT ANSWER The ±rms have different ±scal years. The ±rms are in different industries. The ±rms use different depreciation methods. The ±rms use different inventory methods. 14. A company’s year-end balance sheet for 2013 shows the following: Accounts Receivable: $900 Inventory: $1,200 Fixed Assets: $1,000 Accounts Payable: $1,300 Sales: $4,000 Salaries Expense: $275 What is its ±xed asset turnover ratio? YOUR ANSWER CORRECT ANSWER 1.7 1.8 3.7 4.0 15. A ±rm has a ROE (return on equity) of 0.27, and the industry average ROE is 0.24. Which conclusion should an analyst draw when comparing this ±rm to the industry? YOUR ANSWER CORRECT ANSWER The ±rm is generating higher returns to owners than the industry. The ±rm is generating lower returns to owners than the industry. The ±rm should use more equity ±nancing. The ±rm should use less equity ±nancing. 16. What must have taken place for a ±rm to recognize revenue, in order for the ±rm to comply with the accrual accounting rules? YOUR ANSWER CORRECT ANSWER The ±rm must have been paid for the product. The product must have been delivered. The price of the product must have included sales tax. The price of the product must have been exempt from sales tax. Accessibility Policy Accessibility Settings

2/11/24, 4:29 PM WGU Student Portal https://my.wgu.edu/coaching-report/preassessment-report/v1/studentPidm/11147972/assessmentCode/PVCC/testDate/1707678554 5/18 17. A teacher won $100,000 and invests this money for ±ve years at an interest rate of 4% (compounded annually). How much will this teacher have in principal and interest at the end of the ±ve years? YOUR ANSWER CORRECT ANSWER $120,000 $121,551 $121,665 $125,000 18. An accountant is 40 years old and has an anticipated retirement age of 70 years old. The accountant plans to save $6,000 per year at the end of the next 30 years to fund retirement. How much will this accountant have upon retirement, if the accountant is able to earn 4% annually on this investment? YOUR ANSWER CORRECT ANSWER $180,000 $336,510 $349,970 $442,000 19. An investor deposits $2,000 per year (beginning today) for 10 years in a 4% interest-bearing account. The last cash ²ow is received one year prior to the end of the tenth year. What is this investor’s future balance after 10 years? YOUR ANSWER CORRECT ANSWER $24,012 $24,973 $26,012 $26,973 20. What is the par value (face value) of a bond? YOUR ANSWER CORRECT ANSWER The interest accrued on the bond through expiration The sum of money that the corporation promises to pay upon expiration of the bond The transaction costs associated with bond issuance The coupon yield of the bond 21. A broker is considering purchasing common stock in a company that has average but consistent operating performance. Accessibility Policy Accessibility Settings

2/11/24, 4:29 PM WGU Student Portal https://my.wgu.edu/coaching-report/preassessment-report/v1/studentPidm/11147972/assessmentCode/PVCC/testDate/1707678554 6/18 Which factor should lead this broker to purchase shares in this company? YOUR ANSWER CORRECT ANSWER A recent buying frenzy has driven the current price 50% higher than the previous trailing 12-month high price. The current price of the stock is 25% below its intrinsic value. The broker receives a tip that the company is about to announce a market breakthrough, and the price is above intrinsic value. Intrinsic value is 25% below the current stock price. 22. A broker is considering buying a dividend-paying stock. The dividend will be paid at the end of the year. The analyst consensus is the stock will be worth $36 in one year. The company pays a $2.25 annual dividend. (The ex-dividend date is not a consideration; the broker will receive the full $2.25.) The broker expects a 12% rate of return. What is the highest price this broker should be willing to pay for this stock? YOUR ANSWER CORRECT ANSWER $33.89 $34.01 $34.15 $38.25 23. A person buys shares of a company at $45 and recently paid a $2 annual dividend that is expected to grow by 10% per year. What is the expected return per year? YOUR ANSWER CORRECT ANSWER 12.2% 14.9% 15.7% 17.0% 24. The ±gure below represents the levels of market ef±ciency: Which investment option is less desirable for a prudent investor? Accessibility Policy Accessibility Settings

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2/11/24, 4:29 PM WGU Student Portal https://my.wgu.edu/coaching-report/preassessment-report/v1/studentPidm/11147972/assessmentCode/PVCC/testDate/1707678554 7/18 YOUR ANSWER CORRECT ANSWER A B C D E 25. The market rate of return is 9%. The face value of a bond is $1,000, the coupon rate is 9% with annual compounding, and the bond matures in 10 years. What is the value of this bond? YOUR ANSWER CORRECT ANSWER $748 $1,000 $1,200 $1,548 26. Which statement is true about ²uctuations in bond prices? YOUR ANSWER CORRECT ANSWER When market interest rates ²uctuate, the bond coupon rate is unchanged. When market interest rates are stagnant, the bond coupon rate ²uctuates. When market interest rates ²uctuate, the bond coupon rate ²uctuates. When the market interest rates ²uctuate, the required rate of return equals the bond coupon rate. 27. A company issues bonds at a market price of $925. The face value is $1,000. The bonds mature in 10 years, and the coupon rate is 6% compounded semiannually. What is the yield to maturity (YTM) on this company’s bonds? YOUR ANSWER CORRECT ANSWER 3.53% 7.06% 10.00% 12.46% 28. Which securities are issued by local governments and are usually tax exempt at the federal level? Accessibility Policy Accessibility Settings

2/11/24, 4:29 PM WGU Student Portal https://my.wgu.edu/coaching-report/preassessment-report/v1/studentPidm/11147972/assessmentCode/PVCC/testDate/1707678554 8/18 YOUR ANSWER CORRECT ANSWER Treasury bonds Corporate bonds Foreign bonds Municipal bonds 29. A $1,000 bond pays $27.50 every six months, matures in nine years, and is currently priced at $1,090. What is the yield to maturity for this bond? YOUR ANSWER CORRECT ANSWER 3.80% 4.28% 5.00% 6.31% 30. A bond that matures in 30 months is sold at a premium. What is the yield to maturity (YTM)? YOUR ANSWER CORRECT ANSWER Higher than the coupon rate Equal to the coupon rate Lower than the coupon rate Not enough information to determine YTM 31. Why does a long-term bond resemble an interest-only loan? YOUR ANSWER CORRECT ANSWER A portion of the principal is repaid monthly. None of the principal is repaid until the bond matures. All the principal is repaid before the bond matures. Interest accrues and is paid when the bond matures. 32. Under which circumstances will annual percentage yield (APY) be greater than the annual percentage rate (APR)? YOUR ANSWER CORRECT ANSWER Any time the number of compounding periods is greater than annual. Any time the number of compounding periods is exactly 1.0. Accessibility Policy Accessibility Settings

2/11/24, 4:29 PM WGU Student Portal https://my.wgu.edu/coaching-report/preassessment-report/v1/studentPidm/11147972/assessmentCode/PVCC/testDate/1707678554 9/18 YOUR ANSWER CORRECT ANSWER Any time the effective annual rate equals the APR. Any time the stated nominal rate equals the APY. 33. What is the difference between a common stock and a preferred stock? YOUR ANSWER CORRECT ANSWER Common stock has no ±xed maturity, and a preferred stock has a ±xed maturity. Common stock has ±xed maturity, and a preferred stock does not have a ±xed maturity. Skipping a declared preferred stock dividend results in dividends in arrears. Skipping a common stock dividend means a preferred stock dividend may not be paid. 34. Which happens to the risk level in a portfolio as the number of assets in the portfolio increases? YOUR ANSWER CORRECT ANSWER There is a linear decrease in risk. Risk decreases at a slower rate. All risk can be diversi±ed away. Risk remains constant. 35. The ±gure below represents a portfolio that plots the expected return against the risk of each investment: Where along this line will a highly risk-averse investor likely be? YOUR ANSWER CORRECT ANSWER A1 C1 D2 Accessibility Policy Accessibility Settings

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2/11/24, 4:29 PM WGU Student Portal https://my.wgu.edu/coaching-report/preassessment-report/v1/studentPidm/11147972/assessmentCode/PVCC/testDate/1707678554 10/18 YOUR ANSWER CORRECT ANSWER D3 36. What are two primary bene±ts of the capital asset pricing model (CAPM)? Choose 2 answers. YOUR ANSWER CORRECT ANSWER CAPM provides a way to forecast actual return for stocks. CAPM provides a way to determine the expected return for stocks. CAPM provides a way to estimate the required return. CAPM provides a way to adjust a portfolio to a market beta of one (1). 37. A company has a before-tax cost of common equity of 14%, a pre-tax cost of debt of 6%, a cost of preferred equity of 8%, and a marginal tax rate of 34%. The current market value of the company is $150 million, with $75 million common equity, $50 million debt, and $25 million preferred equity. What is this company's weighted average cost of capital? YOUR ANSWER CORRECT ANSWER 6.5% 7.2% 8.8% 9.7% 38. Which two techniques are effective ways to manage the growth of a ±rm, if additional ±nancing is not available? Choose 2 answers. YOUR ANSWER CORRECT ANSWER Increasing sales prices Altering capacity Increasing dividend payouts Increasing costs 39. Partial ±nancial data for a company is as follows: Assets: $10,000,000 Liabilities: $4,000,000 Equity: $6,000,000 Sales: $25,000,000 Net Income: $5,000,000 Pro±t Margin: 20% Dividends: $500,000 Accessibility Policy Accessibility Settings

2/11/24, 4:29 PM WGU Student Portal https://my.wgu.edu/coaching-report/preassessment-report/v1/studentPidm/11147972/assessmentCode/PVCC/testDate/1707678554 11/18 Dividend Payout Ratio: 10% ROA: 50% ROE: 83% What is the sustainable growth rate for this company? YOUR ANSWER CORRECT ANSWER 20% 50% 75% 83% 40. A machine will reach the end of its useful life in year 5. The realizable salvage value is expected to be $50,000 with a book value of zero. The company’s marginal tax rate is 34%. What is the tax implication on the sale of this new machine at year 5? YOUR ANSWER CORRECT ANSWER Tax shield of $17,000 Tax liabilities of $17,000 Tax shield of $33,000 Tax liabilities of $33,000 41. What is the acceptance criteria when using internal rate of return to evaluate a project? YOUR ANSWER CORRECT ANSWER Accept when the project return is greater than the required return Accept when the required return is greater than the project return Accept when the internal rate of return equals the net present value Accept when the net present value is positive 42. A company has a market value of $500 million. It has a market value of equity of $200 million, a market value of long-term debt of $150 million, and a market value of short-term debt of $150 million. The cost of equity is 12%, the cost of long-term debt is 8%, and the cost of short-term debt is 6%. The marginal tax rate is 35%. What is the weighted average pre-tax cost of capital (WACC) for this company? YOUR ANSWER CORRECT ANSWER 7.53% 8.16% 8.37% Accessibility Policy Accessibility Settings

2/11/24, 4:29 PM WGU Student Portal https://my.wgu.edu/coaching-report/preassessment-report/v1/studentPidm/11147972/assessmentCode/PVCC/testDate/1707678554 12/18 YOUR ANSWER CORRECT ANSWER 9.00% 43. Which advantage does the capital asset pricing model (CAPM) have over the Gordon growth model? YOUR ANSWER CORRECT ANSWER CAPM does not rely on an estimate of the market risk. CAPM is tied to relative market risk, which provides a less reliable estimate growth. CAPM considers risk of a stock relative to the market to determine expected return. The relative market risk is always constant. 44. Why do companies strive for a lower cost of capital? YOUR ANSWER CORRECT ANSWER Less money dedicated to ±nancing means more money is available for production and operations. More money dedicated to ±nancing means more money is available for production and operations. A lower cost of capital positively affects credit rating. A lower cost of capital means a higher debt-to-equity ratio. 45. A corporation established its projected sales at $210 million. It is using its current year balance sheet as a basis for creating a pro forma balance sheet. It estimates cash will be 7% of projected sales, accounts receivable will be 19% of projected sales, and property, plant, and equipment (PP&E) will be 55% of projected sales. Accounts payable are estimated to be 12% of projected sales. Owners’ equity is $34 million. Long-term debt is $90 million. Additionally, the ±rm raised $12.9 million of equity capital. What is the amount of discretionary ±nancing needed? YOUR ANSWER CORRECT ANSWER $8 million $10.1 million $12 million $15.4 million 46. Year 2010 ending retained earnings were $2 million. Year 2011 forecasted sales are $100,000 with a 25% net margin and 20% dividend payout ratio. What are the forecasted retained earnings for year 2011? YOUR ANSWER CORRECT ANSWER $5,000 $30,000 Accessibility Policy Accessibility Settings

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2/11/24, 4:29 PM WGU Student Portal https://my.wgu.edu/coaching-report/preassessment-report/v1/studentPidm/11147972/assessmentCode/PVCC/testDate/1707678554 13/18 YOUR ANSWER CORRECT ANSWER $2,020,000 $2,025,000 47. How is the amount of discretionary ±nancing that is needed by a ±rm determined? YOUR ANSWER CORRECT ANSWER Projected total assets − projected total liabilities + projected owner’s equity Projected total assets + projected total liabilities − projected owner’s equity Projected total assets + projected total liabilities + projected owner’s equity Projected total assets − projected total liabilities − projected owner's equity 48. A company would like to invest in a capital budget project. In 40 years, the project will be worth $500,000 in today's dollars. How much should this company invest today, assuming an average in²ation rate of 2% and a 10% annual return? YOUR ANSWER CORRECT ANSWER $11,047 $23,015 $24,393 $10,248,724 49. A company is preparing a pro forma balance sheet. The company forecast $10 million in projected sales. The projected cash needed 6% of sales, accounts receivable are 19% of sales, and PP&E are 50% of sales. Accounts payable have been 12% of sales, historically. Shareholders' equity is $1.5 million. Pro forma income is $3.6 million. The company has no long-term debt. What is the discretionary ±nancing needed? YOUR ANSWER CORRECT ANSWER $1.2 million $5.1 million $6.3 million $6.9 million 50. Which three pieces of data are needed to perform a capital budget analysis? Choose 3 answers. YOUR ANSWER CORRECT ANSWER Annual cash ²ows for the life of the new project Accessibility Policy Accessibility Settings

2/11/24, 4:29 PM WGU Student Portal https://my.wgu.edu/coaching-report/preassessment-report/v1/studentPidm/11147972/assessmentCode/PVCC/testDate/1707678554 14/18 YOUR ANSWER CORRECT ANSWER Cash ²ow when the ±rm terminates the project The estimated value of the ±rm’s stock price The initial cost of the new project The estimated value of the ±rm’s capital assets 51. What are two examples of sunk costs? Choose 2 answers. YOUR ANSWER CORRECT ANSWER The cost of a market study conducted prior to the decision The cost of feasibility consulting incurred before the decision point The cost of scrapping an old machine to replace with a new machine The cost of disposing an old asset 52. Company A has a degree of operating leverage of 1.85, and Company B has a degree of operating leverage of 6.5. What does the degree of operating leverage say about these two companies? YOUR ANSWER CORRECT ANSWER Company A has lower risk than Company B. Company A must have a lower increase in sales than Company B to achieve the same operating income. Company A has lower debt than Company B. Company A has higher ±xed costs than Company B. 53. Which action is an important part of managing accounts receivable? YOUR ANSWER CORRECT ANSWER Setting credit terms Determining optimal inventory levels Managing disbursement ²oat Evaluating opportunity costs 54. What is the main bene±t associated with holding inventory? YOUR ANSWER CORRECT ANSWER It maximizes the value of the company. Accessibility Policy Accessibility Settings

2/11/24, 4:29 PM WGU Student Portal https://my.wgu.edu/coaching-report/preassessment-report/v1/studentPidm/11147972/assessmentCode/PVCC/testDate/1707678554 15/18 YOUR ANSWER CORRECT ANSWER It makes it possible to meet the demands of customers. It provides the company with an income tax shield. It reduces current liabilities. 55. A person needs to determine the cost to replace a company’s property, plant, and equipment using the replacement cost method. Which value does this person need to consider in order to make this determination? YOUR ANSWER CORRECT ANSWER Book value Present value Market value Historical value 56. Which type of investment will a risk-averse investor most likely invest in? YOUR ANSWER CORRECT ANSWER Individual securities Actively managed funds Floating-rate securities Index funds 57. Company Y has a greater degree of ±nancial risk than Company Z. What would be a result of a 1% decrease in EBIT for both companies? YOUR ANSWER CORRECT ANSWER A greater percentage decrease in Company Y’s pre-tax pro±t A greater percentage decrease in Company Z’s pre-tax pro±t A greater percentage increase in Company Z’s pre-tax pro±t A greater percentage increase in Company Y’s pre-tax pro±t 58. How does the anticipation of bankruptcy affect a ±rm’s capital structure? YOUR ANSWER CORRECT ANSWER A ±rm facing bankruptcy will increase the relative amount of debt in order to increase payment to creditors rather than shareholders. A ±rm facing bankruptcy will reduce debt to avoid associated high levels of bankruptcy costs. Accessibility Policy Accessibility Settings

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2/11/24, 4:29 PM WGU Student Portal https://my.wgu.edu/coaching-report/preassessment-report/v1/studentPidm/11147972/assessmentCode/PVCC/testDate/1707678554 16/18 YOUR ANSWER CORRECT ANSWER A ±rm facing bankruptcy is not affected by any costs and therefore does nothing to restructure capital. A ±rm facing bankruptcy is exempt from repaying debt and therefore restructures its capital structure towards debt. 59. Why would a company prefer to raise capital by issuing debt instead of issuing new equity? YOUR ANSWER CORRECT ANSWER Debt ±nancing provides greater solvency risk. Debt ±nancing provides interest tax bene±ts. Debt ±nancing provides less shareholders’ control. Debt ±nancing provides optimal capital structure. 60. Which hybrid security has special claims on a corporation’s pro±ts or, in case of liquidation, corporate assets? YOUR ANSWER CORRECT ANSWER Common stock Convertible bond Preferred stock Treasury bond 61. How will an increase in corporate tax rates affect a ±rm’s cost of capital? YOUR ANSWER CORRECT ANSWER The cost of debt will decrease. The cost of debt will increase. The cost of equity will decrease. The cost of equity will increase. 62. Which ±nancial ratio is used to measure a company’s effectiveness in extending credit as well as collecting debts? YOUR ANSWER CORRECT ANSWER Accounts receivable turnover Rate of return on sales Times interest earned ratio Earnings per share 63. What is the reason for holding cash and cash equivalents? Accessibility Policy Accessibility Settings

2/11/24, 4:29 PM WGU Student Portal https://my.wgu.edu/coaching-report/preassessment-report/v1/studentPidm/11147972/assessmentCode/PVCC/testDate/1707678554 17/18 YOUR ANSWER CORRECT ANSWER To provide liquidity To ensure opportunity cost coverage To ensure shortage cost coverage To provide credibility 64. Which term describes the amount of cash a ±rm needs in order to pay its immediate bills? YOUR ANSWER CORRECT ANSWER Operating balance Reserve balance Beginning balance Working capital 65. How does the Securities Exchange Commission (SEC) regulate the ±nancial industry? YOUR ANSWER CORRECT ANSWER By requiring public disclosure of information about entities that sell public equity or debt By providing advice to institutions and individuals who are considering making ±nancial investments By designing software, management systems, and other technologies to coordinate ±nancial exchanges By investigating the reasons behind poor investment decisions and organizational underperformance 66. Which company control is required by the Sarbanes-Oxley Act? YOUR ANSWER CORRECT ANSWER Disclosure of off-balance sheet debts Monthly evaluation of internal controls Publication of detailed prospectus for investors Announcement of annual public shareholder meetings 67. Which document is required to be made available prior to a ±rm going public, according to the Securities Act of 1933? YOUR ANSWER CORRECT ANSWER Prospectus Annual report Accessibility Policy Accessibility Settings

2/11/24, 4:29 PM WGU Student Portal https://my.wgu.edu/coaching-report/preassessment-report/v1/studentPidm/11147972/assessmentCode/PVCC/testDate/1707678554 18/18 YOUR ANSWER CORRECT ANSWER 10-K 10-Q 68. What does the Financial Industry Regulatory Authority (FINRA) examine to determine if a ±rm is in compliance with rules of FINRA and the SEC? YOUR ANSWER CORRECT ANSWER Sales practices Purchase practices Payroll practices Production practices 69. What did the Dodd-Frank Act seek to prevent? YOUR ANSWER CORRECT ANSWER Banks making loans to borrowers with low incomes Financial institutions becoming too big to fail Con²icts of interest in audits by accounting ±rms The loss of capital gains by large institutional investors Accessibility Policy Accessibility Settings

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Preassessment score C214

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