Question 1

A business partner whose potential financial loss in the partnership will not exceed his or her investment in that partnership is called a:

Accepted Answer

A)  generally partner.
B)  sole proprietor.
C)  limited partner.
D)  corporate shareholder.
E)  zero partner.F) B) and E)
G) None of the above

Question 2

Decisions made by financial managers should primarily focus on increasing which one of the following?

Accepted Answer

A)  size of the firm
B)  growth rate of the firm
C)  gross profit per unit produced
D)  market value per share of outstanding stock
E)  total salesF) None of the above
G) A) and E)

Question 3

Which one of the following best illustrates that the management of a firm is adhering to the goal of financial management?

Accepted Answer

A)  increase in the amount of the quarterly dividend
B)  decrease in the per unit production costs
C)  increase in the number of shares outstanding
D)  decrease in the net working capital
E)  increase in the market value per shareF) A) and B)
G) A) and E)

Question 4

A business owned by a solitary individual who has unlimited liability for its debt is called a:

Accepted Answer

A)  corporation.
B)  sole proprietorship.
C)  general partnership.
D)  limited partnership.
E)  limited liability company.F) A) and D)
G) C) and E)

Question 5

A stakeholder is:

Accepted Answer

A)  a person who owns shares of stock.
B)  any person who has voting rights based on stock ownership of a corporation.
C)  a person who initially founded a firm and currently has management control over that firm.
D)  a creditor to whom a firm currently owes money.
E)  any person or entity other than a stockholder or creditor who potentially has a claim on the cash flows of a firm.F) A) and E)
G) A) and B)

Question 6

Which of the following accounts are included in working capital management?
I.accounts payable
II.accounts receivable
III.fixed assets
IV.inventory

Accepted Answer

A)  I and II only
B)  I and III only
C)  II and IV only
D)  I, II, and IV only
E)  II, III, and IV onlyF) B) and D)
G) A) and B)

Question 7

Which one of the following statements concerning NASDAQ is FALSE?

Accepted Answer

A)  It is easier to be listed on NASDAQ than on the NYSE.
B)  NASDAQ is an electronic market.
C)  NASDAQ is a dealer market.
D)  NASDAQ is an OTC market.
E)  NASDAQ is an auction market.F) B) and C)
G) C) and E)

Question 8

The Sarbanes-Oxley Act of 2002 is a governmental response to:

Accepted Answer

A)  decreasing corporate profits.
B)  the terrorists attacks on 9/11/2001.
C)  a weakening economy.
D)  deregulation of the stock exchanges.
E)  management greed and abuses.F) D) and E)
G) A) and B)

Question 9

Which one of the following functions should be the responsibility of the controller rather than the treasurer?

Accepted Answer

A)  daily cash deposit
B)  income tax returns
C)  equipment purchase analysis
D)  customer credit approval
E)  payment to a vendorF) B) and E)
G) A) and B)

Question 10

Which of the following help convince managers to work in the best interest of the stockholders? Assume there are no golden parachutes.
I.compensation based on the value of the stock
II.stock option plans
III.threat of a company takeover
IV.threat of a proxy fight

Accepted Answer

A)  I and II only
B)  III and IV only
C)  I, II, and III only
D)  I, III, and IV only
E)  I, II, III, and IVF) A) and E)
G) A) and D)

Question 11

Which one of the following characteristics applies to a limited liability company?

Accepted Answer

A)  available only to firms having a single owner
B)  limited liability for limited partners only
C)  taxed similar to a partnership
D)  taxed similar to a C corporation
E)  all income generated is totally tax-freeF) A) and B)
G) None of the above

Exam 1: Introduction to Corporate Finance

The Sarbanes-Oxley Act of 2002 is a governmental response to:

Correct Answer
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A stakeholder is:

Correct Answer
verified

Which one of the following statements concerning NASDAQ is FALSE?

Correct Answer
verified

Which of the following help convince managers to work in the best interest of the stockholders? Assume there are no golden parachutes. I.compensation based on the value of the stock II.stock option plans III.threat of a company takeover IV.threat of a proxy fight

Correct Answer
verified

Which one of the following characteristics applies to a limited liability company?

Correct Answer
verified

A business owned by a solitary individual who has unlimited liability for its debt is called a:

Correct Answer
verified

Which one of the following best illustrates that the management of a firm is adhering to the goal of financial management?

Correct Answer
verified

A business partner whose potential financial loss in the partnership will not exceed his or her investment in that partnership is called a:

Correct Answer
verified

Which of the following accounts are included in working capital management? I.accounts payable II.accounts receivable III.fixed assets IV.inventory

Correct Answer
verified

Decisions made by financial managers should primarily focus on increasing which one of the following?

Correct Answer
verified

Which one of the following functions should be the responsibility of the controller rather than the treasurer?

Correct Answer
verified

Exam 1: Introduction to Corporate Finance

The Sarbanes-Oxley Act of 2002 is a governmental response to:

Correct AnswerverifiedShow Answer

A stakeholder is:

Correct AnswerverifiedShow Answer

Which one of the following statements concerning NASDAQ is FALSE?

Correct AnswerverifiedShow Answer

Which of the following help convince managers to work in the best interest of the stockholders? Assume there are no golden parachutes. I.compensation based on the value of the stock II.stock option plans III.threat of a company takeover IV.threat of a proxy fight

Correct AnswerverifiedShow Answer

Which one of the following characteristics applies to a limited liability company?

Correct AnswerverifiedShow Answer

A business owned by a solitary individual who has unlimited liability for its debt is called a:

Correct AnswerverifiedShow Answer

Which one of the following best illustrates that the management of a firm is adhering to the goal of financial management?

Correct AnswerverifiedShow Answer

A business partner whose potential financial loss in the partnership will not exceed his or her investment in that partnership is called a:

Correct AnswerverifiedShow Answer

Which of the following accounts are included in working capital management? I.accounts payable II.accounts receivable III.fixed assets IV.inventory

Correct AnswerverifiedShow Answer

Decisions made by financial managers should primarily focus on increasing which one of the following?

Correct AnswerverifiedShow Answer

Which one of the following functions should be the responsibility of the controller rather than the treasurer?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
verified

Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
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