If a corporation receives assets other than cash in exchange for stock, it records the assets received at their market value as of the date of the transaction.

A、there is no legal difference between the corporation and its owners.

B、it is a legally defined, artificial being, separate from its owners.

C、it spreads liability for its corporate obligations to all shareholders.

D、provides limited liability only to small shareholders.

A、Has been a paragon of virtue in its opposition to all forms of political risk.

B、At one time placed restrictions on foreign ownership of its stock. When it relaxed these restrictions, the total market value of the firm fell.

C、At one time placed restrictions on foreign ownership of its stock. When it relaxed these restrictions, there was a major transfer of wealth from foreign shareholders to Swiss shareholders.

D、None of the above

Who Needs the stock Exchange

Everybody does. Nine out of ten of the adult population of this country save or invest in one form. or another. The Stock Exchange provides a way in which this money can be put to work.

If you are buying a car, a television, or a washing machine, you may pay for it out of your savings, or borrow from a bank or hire-purchase company. If you are buying a house, you may get a mortgage from a building society.

A business needing new machinery, or new premises, has similar options. Some of the costs can be met from profits kept in the business, in other words, paid for out of savings, but as a company grows, this becomes increasingly difficult.

From your point of view as a saver, you may be saving up for something definite, such as a down payment on a car or house, or simply in order to have money available, should some unforeseen emergency arise.

Either way, you will not be prepared to entrust your savings to a company seeking cash for expansion unless you can be sure you will be able to get it out again. If the company has meantime invested your money in launching a new product, it will not be able simply to hand it back. Nor can it usefully hand over a bit of the factory roof, or two or three tons of soap, to redeem the investment.

How then can these conflicting requirements be met？

The answer is through the Stock Exchange. When the saver needs his money back, he does not have to go to the company with whom he originally placed it. Instead, he sells his shares to some other saver who is seeking to invest his money.

Large companies need a way to; tap the savings of the public at large.

An oil-field in the North Sea can cost hundreds of millions of pounds to bring into production. Not until the oil is flowing can it contribute to the profits of the company that discovered it.

The same problem, on a smaller scale, faces practically every company trying to develop new products and create new jobs.

There can be little prospect of raising, the sort of sums needed from friends and acquaintances, and while banks may be willing to provide short-term finance, they are generally reluctant to provide money on a permanent basis for long-term projects.

So companies turn to the public, inviting people to lend them money, or take a share in the business in exchange for a share in future profits. This they do by issuing stocks and shares in the business through the Stock Exchange. By so doing they can mobilize the savings of individuals and institutions, both in the U. K. and overseas.

Many of the services needed both by industry and each of us are provided by government or our local authorities. Without hospitals, roads, electricity, railways, this country could not function. All these, require continuous expenditure on new equipment and development if they are to serve us properly, requiring more money than is raised through rates and taxes alone.

The government, local authorities, and nationalized industries therefore frequently need to borrow money to finance major capital spending, and they, too, come to the Stock Exchange.

There is hardly a man or woman in this country whose job or whose standard of living does not depend on the ability of his or her employers to raise money to finance new development. In one way or another, this new money must come from the savings of this country. The Stock Exchange exists to provide a channel through which these savings can reach those who need finance.

Who Are the Savers？

Many attempts have been made to find out how many savers there are in the United Kingdom and Republic of Ireland. It is difficult to be sure, because one person may have a savings bank account, another a bank deposit book, another a b

A．Y

B．N

C．NG

Few would argue with Ford's statement. A brief glimpse at a daffy newspaper vividly shows how much people in the United States think about business. For example, nearly every newspaper has a business section, in which the deals and projects, finances and management, stock prices and labor problems of corporations are reported daily. In addition, business news can appear in every other section. Most national news has an important financial aspect to it. Welfare, foreign aid, the federal budget, and the policies of the Federal Reserve Bank are all heavily affected by business. Moreover, business news appears in some of the unlikeliest places. The world of arts and entertainment is often referred to as "the entertainment industry" or "show business".

The positive side of Henry Ford's statement can be seen in the prosperity that business has brought to U.S. life. One of the most important reasons so many people from all over the world come to live in the United States is the dream of a better job. Jobs are produced in abundance because the U.S. economic system is driven by competition. People believe that this system creates more wealth, more jobs, and a materially better way of life.

The negative side of Henry Ford's statement, however, can be seen when the word business is taken to mean big business. And the term big business—referring to the biggest companies—is seen in opposition to labor. Throughout U.S. history working people have had to fight hard for higher wages, better working conditions, and the fight to form. unions. Today, many of the old labor disputes are over, but there is still some employee anxiety. Downsizing—the driving away of thousands of workers to keep expenses low and profits high—creates

feelings of insecurity for many.

The United States is a country ______ .

A．which encourages free trade at home and abroad

B．where people's chief concern is how to make money

C．where all businesses are managed scientifically

D．which normally works according to the federal budget

Eurodollar futures contracts are traded on the CME with a size of $1 million. The initial margin is $540, and the maintenance margin is $400. You are the treasurer of a corporation, and we are at April 1. You know that you will have to pay cash for some goods worth $10 million that will be delivered on June 17. In turn, you will sell those goods with a profit, but you will not receive payment until September 17. Hence, you know that on June 17, you will have to borrow $10 million for three months. Today is April 1, and the current 3-month LIBOR is 6.25 percent. On the CME, the Eurodollar futures contract with June delivery is quoted at 93.280 percent. The contract expires on the second business day before the third Wednesday of the delivery month (expiration date: June 17). a. What is the forward interest rate implicit in the Eurodollar futures quotation (93.280%) on April 1? Why is it higher than the current three-month Eurodollar rate (6.25%)? b. What position would you take in futures contracts to lock in a three-month borrowing rate for June 17? c. On June 17, the Eurodollar futures contract quotes at 91 percent, while the current Eurodollar rate in London is 9 percent. You unwind your position on that date. Describe the cash flows involved.

A、efficient use of assets

B、profit margin

C、prudent financial leverage

D、sufficient liquidity

A、the cost of the project is less than $1,000,000. (该项目的成本低于$ 1,000,000。)

B、the cost of the project is less than the present value of $100,000 per year for 10 years. (项目成本低于10年每年100,000美元的现值。)

C、this project's expected profits are higher than any other projects the corporation has available. (该项目的预期利润高于公司现有的其他任何项目。)

D、the present value of the project's cash inflows exceeds the present value of the project's cash outflows. (项目现金流入的现值超过项目现金流出的现值。)

A、board of adjustors

B、board of stakeholders

C、board of directors

D、board of managers