Every Friday, we challenge our readers with five financial trivia questions drawn from the financial pages, accreditation organisations, and from readers who share our enthusiasm for the perfectly-conceived quiz question.
To see the answers, go to page 2. To suggest a question, email [email protected]
1. According to American business historian Alfred D Chandler Jr, in the 19th century, the visible __________ of ____________ began to supplant what Adam Smith had referred to as “the invisible hand of market forces”.
2. What is the meaning of “Keiretsu”?
3. What are the names of the “Big Four” major US accounting firms?
4. What’s the name of the accounting firm that once comprised part of what used to be known as the “Big Five”; and what happened to it?
5. A “high beta stock” is one that is (a., more) (b., less) volatile and correlated than the market average
(To see the answers to these five questions, go to page 2.)
Answers to the International Investment Friday Financial Trivia Quiz:
1. The visible hand of management (as referred to in Chandler’s 1977 book, The Visible Hand: The Managerial Revolution in American Business)
2. Keiretsu is a Japanese word that refers to multi-industry cartels, or “loose conglomeration of firms sharing one or more common denominators”, according to Investopedia. It cites as an example “the close relationship between AOL and Sun Micro”, two companies that don’t own shares in one another but work closely together on various projects.
3. Deloitte LLP, PwC LLP, Ernst & Young (EY), KPMG LLP
4. Arthur Andersen; it was a casualty of the Enron collapse in 2002
5. (a., more)