<div style='margin-bottom: 20px;'> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">What are the two ways investors can earn returns from equity instruments?</h2> <p style="font-weight: normal; font-size: 1.2rem;">Dividends and stock price appreciation.</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">Who are considered the real owners of a company?</h2> <p style="font-weight: normal; font-size: 1.2rem;">Common stockholders.</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">What is the primary function of financial markets?</h2> <p style="font-weight: normal; font-size: 1.2rem;">A marketplace for the creation and trading of financial assets.</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">What is unique about the commodities market?</h2> <p style="font-weight: normal; font-size: 1.2rem;">It trades natural resources or commodities whose price is unpredictable.</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">What distinguishes a financial institution from a financial instrument and financial market?</h2> <p style="font-weight: normal; font-size: 1.2rem;">Financial institutions are companies providing services like banking, insurance, and investment management, whereas financial instruments represent legal agreements of monetary value, and financial markets are platforms for trading these instruments.</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">What is the main challenge for investors in the stock market?</h2> <p style="font-weight: normal; font-size: 1.2rem;">Choosing the right stocks that will earn money.</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">What is a derivative in the context of financial markets?</h2> <p style="font-weight: normal; font-size: 1.2rem;">A contract whose value is based on the market value of the asset being traded.</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">What are examples of depository institutions?</h2> <p style="font-weight: normal; font-size: 1.2rem;">Commercial banks, savings banks, credit unions, and savings and loan associations.</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">What is the role of the President (Chief Executive Officer) in financial management?</h2> <p style="font-weight: normal; font-size: 1.2rem;">Overseeing company operations, ensuring strategies are implemented, managing all areas of management, and representing the company externally.</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">What determines the returns from equity instruments?</h2> <p style="font-weight: normal; font-size: 1.2rem;">The performance of the issuing company.</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">What are the responsibilities of the VP for Production?</h2> <p style="font-weight: normal; font-size: 1.2rem;">Ensuring production meets customer demands, identifying cost-minimizing production technologies, planning production to maximize facility use, and finding adequate and cheap raw material suppliers.</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">What is the primary responsibility of the Board of Directors?</h2> <p style="font-weight: normal; font-size: 1.2rem;">To ensure the corporation operates in the best interest of the stockholders.</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">How does the VP for Marketing contribute to the company?</h2> <p style="font-weight: normal; font-size: 1.2rem;">Formulating marketing strategies, directing sales, performing market analysis, evaluating marketing methods, and promoting relationships with customers and distributors.</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">Who elects the Board of Directors in a corporation?</h2> <p style="font-weight: normal; font-size: 1.2rem;">The shareholders elect the Board of Directors.</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">How do non-depository financial institutions operate differently from depository institutions?</h2> <p style="font-weight: normal; font-size: 1.2rem;">Non-depository institutions serve as intermediaries between savers and borrowers but do not accept time deposits, operating through selling securities or insurance policies.</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">How do preferred stockholders differ from common stockholders in terms of claims?</h2> <p style="font-weight: normal; font-size: 1.2rem;">Preferred stockholders have priority over common stockholders regarding claims over the assets of a company.</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">How do investors make money with stocks?</h2> <p style="font-weight: normal; font-size: 1.2rem;">When the stocks perform well in the market.</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">What are some of the key functions of the Board of Directors?</h2> <p style="font-weight: normal; font-size: 1.2rem;">Setting policies on investments, capital structure, and dividend policies; approving company strategies, goals, and budgets; appointing and removing top management; determining top management’s compensation; approving financial statements.</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">What purpose does the bond market serve for companies and the government?</h2> <p style="font-weight: normal; font-size: 1.2rem;">To secure money to finance a project or investment.</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">What types of assets are traded in the stock market?</h2> <p style="font-weight: normal; font-size: 1.2rem;">Shares of ownership of public companies.</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">What tasks does the VP for Administration handle?</h2> <p style="font-weight: normal; font-size: 1.2rem;">Coordinating administration, finance, and marketing departments; assisting in hiring; payroll preparation; payment of vendors; collection of receivables; determining office space needs; minimizing operating costs.</p> </div> </div>