Who is insolvent_______________?

A. a firm that is unable to pay debts
B. a firm that is liquidated
C. a firm that is for sale
D. a firm that has more liabilities than assets

Which form of business organization falls between a corporation and partnership ?

A. joint company
B. joint stock company
C. limited joint company
D. limited company

Keynesian economics is an economic theory of British economist John Maynard. What this theory states ?

A. a free market is necessary for economic growth and stability
B. regulation is necessary for economic growth and stability
C. active government intervention is necessary to ensure economic growth and stability
D. government intervention is not necessary to ensure economic growth and stability

What occurs when a firm’s business is terminated Assets are sold, proceeds are used to pay creditors, and any leftovers are distributed to shareholders ?

A. solvency
B. crash
C. bankruptcy
D. liquidation

What is called the excess of purchase price over fair market value of net assets that are acquired under the purchase method of accounting ?

A. bonus
B. up level
C. goodwill
D. upgradation

What is called that legal process through which a company receives a charter and state in which it is based allows it to operate as corporation ?

A. going legal
B. book corporation
C. chartered corporation
D. incorporation

Which money is called Hot money ?

A. that moves across country borders in response to interest rate differences
B. that moves away when the interest rate differential
C. both of them
D. none of them

Term a country’s decision to tie the value of its currency to another country’s currency gold or a basket of currencies ?

A. pagged exchanged rate
B. fixed exchange rate
C. relative exchange rate
D. knotted exchange rate

By which process the holder of a mortgage seizes the property of a homeowner who has not made interest and or principal payments on time as stipulated in the mortgage contract ?

A. foreclosure
B. default
C. bankrupt
D. none of these

Which exchange rate system is characterized by the absence of government intervention ?

A. free float
B. clean float
C. both of them
D. none of them