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Questions and Answers
What is the term for a group of corporations with diversified business activities in varied industries?
What is the term for a group of corporations with diversified business activities in varied industries?
- Holding company
- Subsidiaries
- Conglomerate (correct)
- Related party
What is the amount paid by stockholders in excess of the par value called?
What is the amount paid by stockholders in excess of the par value called?
- Capital surplus (correct)
- Par value
- Capital stock
- Retained earnings
If Ana deposited P10,000.00 in a bank in a time deposit account at 4% interest in 90 days, approximately how much will she earn?
If Ana deposited P10,000.00 in a bank in a time deposit account at 4% interest in 90 days, approximately how much will she earn?
- 267
- 100.00
- 107.50 (correct)
- 400
Who is responsible for internal supervision of other employees in a Broker Dealer?
Who is responsible for internal supervision of other employees in a Broker Dealer?
Who elects the Board of Directors (BOD) of a corporation?
Who elects the Board of Directors (BOD) of a corporation?
What is the term for a corporation that underwrites securities of another person?
What is the term for a corporation that underwrites securities of another person?
Which of the following is NOT a qualified investor participant?
Which of the following is NOT a qualified investor participant?
What is the minimum total assets required for an entity to be a qualified investor participant?
What is the minimum total assets required for an entity to be a qualified investor participant?
What is not a requirement for a broker or dealer?
What is not a requirement for a broker or dealer?
What is the role of an Associated Person?
What is the role of an Associated Person?
What is the purpose of the Board of Directors in a corporation?
What is the purpose of the Board of Directors in a corporation?
What is the term for a company that owns and controls another company?
What is the term for a company that owns and controls another company?
Who needs to register with the Commission?
Who needs to register with the Commission?
What is the consequence of not registering with the Commission?
What is the consequence of not registering with the Commission?
What is the term for a minimum capital requirement for brokers or dealers?
What is the term for a minimum capital requirement for brokers or dealers?
What is the role of a Broker Dealer?
What is the role of a Broker Dealer?
What type of voting allows a stockholder to spread their total votes among the number of positions to be filled in any manner?
What type of voting allows a stockholder to spread their total votes among the number of positions to be filled in any manner?
What type of market is it if the proceeds from the sale of securities go directly to the issuing corporation?
What type of market is it if the proceeds from the sale of securities go directly to the issuing corporation?
What is true concerning treasury stock?
What is true concerning treasury stock?
What is a written authorization allowing another person to vote in the place of a shareholder?
What is a written authorization allowing another person to vote in the place of a shareholder?
According to the Corporation Code of the Philippines, what percentage of a corporation's authorized capital must be paid up?
According to the Corporation Code of the Philippines, what percentage of a corporation's authorized capital must be paid up?
What is the maximum number of shares a corporation may issue multiplied by the par value of each share?
What is the maximum number of shares a corporation may issue multiplied by the par value of each share?
What is the total number of shares of common stock that a corporation has issued?
What is the total number of shares of common stock that a corporation has issued?
What is the difference between issued shares and treasury shares?
What is the difference between issued shares and treasury shares?
What is the face value of the bond?
What is the face value of the bond?
How many shares of CDE Incorporated are outstanding?
How many shares of CDE Incorporated are outstanding?
What happens to the share price in a stock split?
What happens to the share price in a stock split?
What are bonds rated 'CC' or below called?
What are bonds rated 'CC' or below called?
What should be the market price of a convertible preferred stock to be at parity with the common stock?
What should be the market price of a convertible preferred stock to be at parity with the common stock?
What is the relationship between the principal and face value of a bond?
What is the relationship between the principal and face value of a bond?
What is included in the computation of a country's GNP?
What is included in the computation of a country's GNP?
What is the difference between GDP and GNP?
What is the difference between GDP and GNP?
What is measured by the Consumer Price Index (CPI)?
What is measured by the Consumer Price Index (CPI)?
What is the term for the purchasing power of money?
What is the term for the purchasing power of money?
What determines the prices of stock in the secondary market?
What determines the prices of stock in the secondary market?
Which of the following is not considered a liquid or semi-liquid asset?
Which of the following is not considered a liquid or semi-liquid asset?
What is the main difference between GDP and GNP?
What is the main difference between GDP and GNP?
What is the term for the total value of goods and services produced by a country in a given year?
What is the term for the total value of goods and services produced by a country in a given year?
Study Notes
Corporate Structure
- A group of corporations with diversified business activities in varied industries, controlled and managed by a parent corporate entity, is called a conglomerate.
- A subsidiary is a corporation controlled by another corporation, known as the parent corporation.
Stock and Bondholder Rights
- The amount paid by stockholders in excess of the par value is called capital surplus.
- Common stockholders elect the Board of Directors (BOD) of a corporation.
- Preferred stockholders have priority over common stockholders in terms of dividends and asset distribution.
Financial Markets
- A primary market is where the proceeds from the sale of securities go directly to the issuing corporation.
- A secondary market is where existing securities are traded among investors.
- Over-the-counter (OTC) market is a type of secondary market where securities are traded directly between two parties.
Treasury Stock
- Treasury stock is an issued stock that has been repurchased by the corporation.
- It does not receive dividends and has no voting rights.
- It is not considered an outstanding stock.
Voting and Proxies
- Cumulative voting is a type of voting where stockholders can spread their total votes among the number of positions to be filled.
- A proxy is a written authorization allowing another person to vote in the place of a shareholder.
Corporation Code
- At least 25% of a corporation's paid-up capital must be paid up.
- Authorized capital is the maximum number of shares a corporation may issue, multiplied by the par value of each share.
Bond Ratings
- Bonds rated "CC" or below are called junk bonds.
- Junk bonds are considered high-risk investments.
National Income
- Gross National Product (GNP) measures the value of all goods and services produced by a country's citizens, regardless of where they are produced.
- Gross Domestic Product (GDP) measures the value of all goods and services produced within a country.
- Dollar remittances of Overseas Filipino Workers (OFWs) are considered in the computation of the country's GNP.
Economic Indicators
- The Consumer Price Index (CPI) is an indicator of the general level of prices and is also a measure of the purchasing power of money.
- The CPI measures the average change in prices of a basket of goods and services.
Securities and Markets
- T-notes, T-bills, and short-term certificates of indebtedness issued by the Bangko Sentral ng Pilipinas (BSP) are considered liquid or semi-liquid assets.
- Commercial papers are not considered liquid or semi-liquid assets.
- Prices of stock in the secondary market are determined by investors who affect supply and demand.
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Description
Test your knowledge of business management and organizational structures with this 179-question mock exam from FAMI FCLP Module 1. Covering topics such as corporate entities, business activities, and more.
