Question 1

Corporate stakeholders include all of the following EXCEPT

Accepted Answer

A)  employees. 
B)  shareholders. 
C)  suppliers. 
D)  auditors. 
A)  employees. 
B)  shareholders. 
C)  suppliers. 
D)  auditors.

Question 2

This type of business organization is relatively easy to start, and it is subject to much lighter regulatory and paperwork burden than other business forms.

Accepted Answer

A)  sole proprietorship 
B)  partnership 
C)  corporation 
D)  hybrid organization 
A)  sole proprietorship 
B)  partnership 
C)  corporation 
D)  hybrid organization

Question 3

Which of the following statements is correct?

Accepted Answer

A)  Sole proprietorships are easy to start. 
B)  If the sole proprietorship gets sued, the owner is not liable. 
C)  It is relatively easy for sole proprietorships to raise money. 
D)  Profits from the sole proprietorship are subject to double taxation. 
A)  Sole proprietorships are easy to start. 
B)  If the sole proprietorship gets sued, the owner is not liable. 
C)  It is relatively easy for sole proprietorships to raise money. 
D)  Profits from the sole proprietorship are subject to double taxation.

Question 4

All of the following are advantages to organizing as a corporation EXCEPT

Accepted Answer

A)  limited liability. 
B)  double taxation. 
C)  easy access to capital. 
D)  easy to transfer ownership. 
A)  limited liability. 
B)  double taxation. 
C)  easy access to capital. 
D)  easy to transfer ownership.

Question 5

Individuals who provide small amounts of capital and expert business advice to small firms in exchange for an ownership stake in the firm are referred to as

Accepted Answer

A)  institutional investors. 
B)  corporate investors. 
C)  angel investors. 
D)  capital investors. 
A)  institutional investors. 
B)  corporate investors. 
C)  angel investors. 
D)  capital investors.

Question 6

This group is elected by stockholders to oversee management in a corporation.

Accepted Answer

A)  chief counselors 
B)  chief executives 
C)  board of directors 
D)  auditors 
A)  chief counselors 
B)  chief executives 
C)  board of directors 
D)  auditors

Question 7

The portion of a company's profits that are kept by the company rather than distributed to the stockholders as cash dividends is referred to as

Accepted Answer

A)  restricted earnings. 
B)  venture capital. 
C)  retained earnings. 
D)  institutional investment. 
A)  restricted earnings. 
B)  venture capital. 
C)  retained earnings. 
D)  institutional investment.

Question 8

Which of the following statements is correct?

Accepted Answer

A)  Accountants are focused on what happened in the past. 
B)  Financial managers are focused on what happened in the past. 
C)  Both accountants and financial managers use total quality management systems to standardize data. 
D)  Financial managers double-check the accountant's statements. 
A)  Accountants are focused on what happened in the past. 
B)  Financial managers are focused on what happened in the past. 
C)  Both accountants and financial managers use total quality management systems to standardize data. 
D)  Financial managers double-check the accountant's statements.

Question 9

All of the following are an example of a fiduciary relationship EXCEPT

Accepted Answer

A)  a bank employee manages deposits. 
B)  a financial advisor advises her clients. 
C)  a CEO manages the firm. 
D)  the shareholder elects a board member. 
A)  a bank employee manages deposits. 
B)  a financial advisor advises her clients. 
C)  a CEO manages the firm. 
D)  the shareholder elects a board member.

Question 10

Which of the following statements is incorrect?

Accepted Answer

A)  Sole proprietorships are subject to less regulation. 
B)  Both angel investors and venture capitalists exchange capital for ownership. 
C)  Shareholders are responsible for paying off the corporate bonds in the event of a bankruptcy. 
D)  All of these choices are correct. 
A)  Sole proprietorships are subject to less regulation. 
B)  Both angel investors and venture capitalists exchange capital for ownership. 
C)  Shareholders are responsible for paying off the corporate bonds in the event of a bankruptcy. 
D)  All of these choices are correct.

Question 11

Which of the following is the firm's highest-level financial manager?

Accepted Answer

A)  chief executive officer 
B)  chief financial officer 
C)  board of directors 
D)  corporate governance 
A)  chief executive officer 
B)  chief financial officer 
C)  board of directors 
D)  corporate governance

Question 12

This is a term to describe non-physical assets like stocks and bonds that get their value from future cash flows.

Accepted Answer

A)  investment 
B)  financial asset 
C)  real asset 
D)  financial markets 
A)  investment 
B)  financial asset 
C)  real asset 
D)  financial markets

Question 13

Which of the following is defined as a group of securities that exhibit similar characteristics, behave similarly in the marketplace, and are subject to the same laws and regulations?

Accepted Answer

A)  investments 
B)  asset classes 
C)  market instruments 
D)  financial markets 
A)  investments 
B)  asset classes 
C)  market instruments 
D)  financial markets

Question 14

A potential future negative impact to value and/or cash flows is often discussed in terms of probability of loss and the expected magnitude of the loss. This is called

Accepted Answer

A)  options. 
B)  standard deviation. 
C)  coefficient of variation. 
D)  risk. 
A)  options. 
B)  standard deviation. 
C)  coefficient of variation. 
D)  risk.

Question 15

Which of the following can use financial concepts to improve their decisions?

Accepted Answer

A)  financial professionals only 
B)  financial and nonfinance professionals 
C)  day-to-day operations managers only 
D)  long-term operations managers only 
A)  financial professionals only 
B)  financial and nonfinance professionals 
C)  day-to-day operations managers only 
D)  long-term operations managers only

Corporate stakeholders include all of the following EXCEPT

This type of business organization is relatively easy to start, and it is subject to much lighter regulatory and paperwork burden than other business forms.

Which of the following statements is correct?

All of the following are advantages to organizing as a corporation EXCEPT

Individuals who provide small amounts of capital and expert business advice to small firms in exchange for an ownership stake in the firm are referred to as

This group is elected by stockholders to oversee management in a corporation.

The portion of a company's profits that are kept by the company rather than distributed to the stockholders as cash dividends is referred to as

Which of the following statements is correct?

All of the following are an example of a fiduciary relationship EXCEPT

Which of the following statements is incorrect?

Which of the following is the firm's highest-level financial manager?

This is a term to describe non-physical assets like stocks and bonds that get their value from future cash flows.

Which of the following is defined as a group of securities that exhibit similar characteristics, behave similarly in the marketplace, and are subject to the same laws and regulations?

A potential future negative impact to value and/or cash flows is often discussed in terms of probability of loss and the expected magnitude of the loss. This is called

Which of the following can use financial concepts to improve their decisions?

Reviewing Financial Statements

Analyzing Financial Statements

Time Value of Money 1: Analyzing Single Cash Flows

Time Value of Money 2: Analyzing Annuity Cash Flows

Understanding Financial Markets and Institutions

Valuing Bonds

Valuing Stocks

Characterizing Risk and Return

Estimating Risk and Return

Calculating the Cost of Capital

Estimating Cash Flows on Capital Budgeting Projects

Weighing Net Present Value and Other Capital Budgeting Criteria

Working Capital Management and Policies

Financial Planning and Forecasting

Assessing Long-Term Debt, Equity, and Capital Structure

Sharing Firm Wealth: Dividends, Share Repurchases, and Other Payouts

Issuing Capital and the Investment Banking Process

International Corporate Finance

Mergers and Acquisitions and Financial Distress

Filters

Exam 1: Introduction to Financial Management

Corporate stakeholders include all of the following EXCEPT

This type of business organization is relatively easy to start, and it is subject to much lighter regulatory and paperwork burden than other business forms.

Which of the following statements is correct?

All of the following are advantages to organizing as a corporation EXCEPT

Individuals who provide small amounts of capital and expert business advice to small firms in exchange for an ownership stake in the firm are referred to as

This group is elected by stockholders to oversee management in a corporation.

The portion of a company's profits that are kept by the company rather than distributed to the stockholders as cash dividends is referred to as

Which of the following statements is correct?

All of the following are an example of a fiduciary relationship EXCEPT

Which of the following statements is incorrect?

Which of the following is the firm's highest-level financial manager?

This is a term to describe non-physical assets like stocks and bonds that get their value from future cash flows.

Which of the following is defined as a group of securities that exhibit similar characteristics, behave similarly in the marketplace, and are subject to the same laws and regulations?

A potential future negative impact to value and/or cash flows is often discussed in terms of probability of loss and the expected magnitude of the loss. This is called

Which of the following can use financial concepts to improve their decisions?

Reviewing Financial Statements

Analyzing Financial Statements

Time Value of Money 1: Analyzing Single Cash Flows

Time Value of Money 2: Analyzing Annuity Cash Flows

Understanding Financial Markets and Institutions

Valuing Bonds

Valuing Stocks

Characterizing Risk and Return

Estimating Risk and Return

Calculating the Cost of Capital

Estimating Cash Flows on Capital Budgeting Projects

Weighing Net Present Value and Other Capital Budgeting Criteria

Working Capital Management and Policies

Financial Planning and Forecasting

Assessing Long-Term Debt, Equity, and Capital Structure

Sharing Firm Wealth: Dividends, Share Repurchases, and Other Payouts

Issuing Capital and the Investment Banking Process

International Corporate Finance

Mergers and Acquisitions and Financial Distress

Filters