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How Much You Know About Corporate Finance? Quiz

Question 1 of 3

Q1 . The shareholders elect ___ to protect their interest in a corporation.

A Board of Directors

B The CEO

C The CFO

D The senior managers

Q2 . Which legal form of business is best suited for an expanding business that is likely to need large amounts of funding?

A Sole proprietorship

B General partnership

C Corporation

D All forms are about the same

Q3 . The owners of a corporation can best be described as the ___ of the corporation.

A Directors

B Shareholders

C Officers

D Managers

Q4 . Which most accurately describes an inside director of a corporation?

A One who has engaged in insider trading

B One who also works inside the SEC

C One who is also an officer of the corporation

D One who is an officer of another corporation

Q5 . Investors invest in stocks of companies that do not pay dividends because

A They hope to make money when the stock price rises

B Not many companies pay dividends

C Companies that do not pay dividends are almost always more profitable than those that pay dividends

D Actually, every corporation is required by law to pay dividends

Q6 . Your friend is concerned that if she organizes her business as a corporation, she will have to share ownership of it with other shareholders and therefore give up control of her business. What should your friend know?

A She is right

B A corporation can have a single shareholder who owns all of the stock

C A corporation needs to have at least 2,000 shareholders

D Not only will she share ownership of the corporation, but her corporation will be obligated to pay dividends

Q7 . In a typical large public corporation, who manages the company on a day to day basis?

A Board of directors

B Only the outside directors

C Officers of the corporation

D The shareholders

Q8 . A shareholder wishes to sell shares to another investor. She should know that shares of stock in a corporation.

A Can never be transferred from one investor to another

B Can be freely transferred from one investor another

C Can be transferred to another investor but only if all other existing shareholders agree to the transfer

D Corporations do not have shares of stock, so the question is irrelevant

Q9 . In a typical corporation, for which function(s) is the CFO usually is responsible?

A Accounting

B Finance

C Accounting and Finance

D Accounting, Finance and Legal

Q10 . Owners of sole proprietorships are taxed at a rate of 30% on the profits of their businesses. Corporations are taxed at 21% of their profits. Dividends are taxed at a rate of 15%. If a business earns a profit of $300,000 for the year. If a business is organized as a corporation and pays out the maximum dividend it can pay, from the year's profits, how much of the dividend is available to the stockholders after all taxes are paid?

A $210,000

B $237,000

C $255,000

D $201,450

From Classroom to Quiz Stardom

When James Wilson first created a quiz on ancient civilizations for his high school history class, he never imagined it would lead to a side career as one of QuizMaker's most successful creators.

Three years and over 200 quizzes later, James's 'History Mysteries' series has amassed more than 2 million plays and a dedicated following of history enthusiasts from around the world.

Finding a Niche in Historical Puzzles

James's approach combines historical accuracy with engaging storytelling and problem-solving elements. 'I wanted to create quizzes that weren't just about memorizing dates and names,' he explains. 'Each quiz tells a story and invites players to solve a historical mystery or puzzle.'

This unique format has resonated with players who might not typically be drawn to history content, helping James build an audience beyond traditional history buffs.

Building a Community Around Historical Content

Beyond creating engaging quizzes, James has built a thriving community through his dedicated social media channels and a monthly newsletter where he shares historical facts, behind-the-scenes research, and previews of upcoming quizzes.

'The community aspect has been the most rewarding part,' James says. 'I receive messages from students saying my quizzes helped them develop a love for history, and from older adults who enjoy testing their knowledge and learning new things.'

Monetization Strategy

While James started creating quizzes as a teaching tool, they've now become a significant source of income. Through a combination of premium quizzes, sponsorships from educational companies, and affiliate marketing for history books and courses, he's been able to generate substantial revenue.

'Last year, my quiz income actually exceeded my teaching salary,' James reveals. 'It's allowed me to reduce my teaching hours and focus more on creating high-quality educational content.'