Question 1

An ethics program is expected to have___________impact on the firm's share price

Accepted Answer

A)  positive 
B)  undetermined 
C)  no 
D)  negative 
A)  positive 
B)  undetermined 
C)  no 
D)  negative

Question 2

In __________, owners have limited liability with regard to the business-they are not personally liable for other owners' malpractice.

Accepted Answer

A)  in a cooperative 
B)  a limited partnership 
C)  s sole proprietorship 
D)  a partnership 
A)  in a cooperative 
B)  a limited partnership 
C)  s sole proprietorship 
D)  a partnership

Question 3

A&B Wholesalers sells 1,000 widgets per day at $1 each. A&B has introduced a new product to itsmix called the wiggle. It is estimated that A&B will sell 400 wiggles per day at $2 each; however,the sales of the widgets will decrease by 200 units per day. The firm's marginal change in revenues from adopting the wiggle is

Accepted Answer

A)  $1,800. 
B)  $600. 
C)  $1,600. 
D)  $800. 
A)  $1,800. 
B)  $600. 
C)  $1,600. 
D)  $800.

Question 4

The primary goal of the financial manager is

Accepted Answer

A)  maximizing wealth. 
B)  minimizing return. 
C)  minimizing risk. 
D)  maximizing profit. 
A)  maximizing wealth. 
B)  minimizing return. 
C)  minimizing risk. 
D)  maximizing profit.

Question 5

The treasurer is the officer responsible for the firm's accounting activities, such as corporateaccounting, tax management, financial accounting, and cost accounting.

Accepted Answer

A) True 
 B)False

Question 6

The sole proprietor has unlimited liability; only his or her total investment in the business can be taken to satisfy creditors.

Accepted Answer

A) True 
 B)False

Question 7

Finance can be defined as

Accepted Answer

A)  the art of merchandising products and services. 
B)  the science of the production, distribution, and consumption of wealth. 
C)  the system of debits and credits. 
D)  the art and science of managing money. 
A)  the art of merchandising products and services. 
B)  the science of the production, distribution, and consumption of wealth. 
C)  the system of debits and credits. 
D)  the art and science of managing money.

Question 8

A financial manager must choose between four alternative investments, 1, 2, 3, and 4. Each assetcosts $35,000 and is expected to provide earnings over a three-year period as described below.$\begin{array}{rrrr}\text { Asset }&\text { Year } 1&\text { Year } 2&\text { Year } 3\
1 & \$ 21,000 & \$ 15,000 & \$ 6,000 \
2 & 9,000 & 15,000 & 21,000 \
3 & 3,000 & 20,000 & 19,000 \
4 & 6,000 & 12,000 & 12,000
\end{array}$Based on the profit maximization goal, the financial manager would choose

Accepted Answer

A)  Asset 1. 
B)  Asset 2. 
C)  Asset 3. 
D)  Asset 4. 
A)  Asset 1. 
B)  Asset 2. 
C)  Asset 3. 
D)  Asset 4.

Question 9

The financial manager may be responsible for any of the following EXCEPT

Accepted Answer

A)  analyzing the effects of more debt on the firm's capital structure. 
B)  keeping track of quarterly tax payments. 
C)  analyzing quarterly budget and performance reports. 
D)  determining whether to accept or reject a capital asset acquisition. 
A)  analyzing the effects of more debt on the firm's capital structure. 
B)  keeping track of quarterly tax payments. 
C)  analyzing quarterly budget and performance reports. 
D)  determining whether to accept or reject a capital asset acquisition.

Question 10

The agency problem may result from a manager's concerns about any of the following EXCEPT

Accepted Answer

A)  personal wealth. 
B)  corporate goals. 
C)  job security. 
D)  company-provided perquisites. 
A)  personal wealth. 
B)  corporate goals. 
C)  job security. 
D)  company-provided perquisites.

Question 11

The role of Board of Directors is to

Accepted Answer

A)  monitor management on behalf of shareholders 
B)  represent the interests of management to the shareholders 
C)  follow the directions of the Chief Executive Officer (CEO) of the company 
D)  ensure that managers' compensation is protected even when the company performs poorly 
A)  monitor management on behalf of shareholders 
B)  represent the interests of management to the shareholders 
C)  follow the directions of the Chief Executive Officer (CEO) of the company 
D)  ensure that managers' compensation is protected even when the company performs poorly

Question 12

Corporate ethics policies typically apply to____________in dealing with _________

Accepted Answer

A)  management actions; all corporate constituents 
B)  employee actions; customers and creditors 
C)  employee actions; customers, vendors, and regulators 
D)  employee actions; all corporate constituents 
A)  management actions; all corporate constituents 
B)  employee actions; customers and creditors 
C)  employee actions; customers, vendors, and regulators 
D)  employee actions; all corporate constituents

Question 13

The financial manager recognizes revenues and expenses utilizing

Accepted Answer

A)  the actual inflows and outflows of cash. 
B)  standardized, generally accepted, accounting principles. 
C)  the revenue method. 
D)  the accrual method. 
A)  the actual inflows and outflows of cash. 
B)  standardized, generally accepted, accounting principles. 
C)  the revenue method. 
D)  the accrual method.

Question 14

Managing the firm's liabilities includes all of the following EXCEPT

Accepted Answer

A)  notes payable. 
B)  accounts payable. 
C)  accruals. 
D)  cash. 
A)  notes payable. 
B)  accounts payable. 
C)  accruals. 
D)  cash.

Question 15

If a manager's compensation is based on a performance measure such as earnings per share, he/she has an incentive plan.

Accepted Answer

A) True 
 B)False

Question 16

Where risk is involved, stockholders expect to earn higher rates of return on investments of lowerrisk and vice versa.

Accepted Answer

A) True 
 B)False

Question 17

The financial manager prepares financial statements that recognize revenue at the point of sale and expenses when incurred.

Accepted Answer

A) True 
 B)False

Question 18

In a limited partnership, only one partner may assume limited liability, all other partners have to have unlimited liability.

Accepted Answer

A) True 
 B)False

Question 19

All of the following are measures that can be used as a guide for establishing a corporate ethicspolicy, EXCEPT

Accepted Answer

A)  making sure violations are penalized, while at the same time not subjecting the employee to publicity. 
B)  an effective internal audit system. 
C)  making reference checks before hiring new employees. 
D)  an effective internal control system. 
A)  making sure violations are penalized, while at the same time not subjecting the employee to publicity. 
B)  an effective internal audit system. 
C)  making reference checks before hiring new employees. 
D)  an effective internal control system.

Question 20

The controller is the officer responsible for the firm's financial activities such as financial planning and fund raising, making capital expenditure decisions, and managing cash, credit, the pension fund, and foreign exchange.

Accepted Answer

A) True 
 B)False

An ethics program is expected to have___________impact on the firm's share price

In __________, owners have limited liability with regard to the business-they are not personally liable for other owners' malpractice.

The primary goal of the financial manager is

The treasurer is the officer responsible for the firm's accounting activities, such as corporateaccounting, tax management, financial accounting, and cost accounting.

The sole proprietor has unlimited liability; only his or her total investment in the business can be taken to satisfy creditors.

Finance can be defined as

The financial manager may be responsible for any of the following EXCEPT

The agency problem may result from a manager's concerns about any of the following EXCEPT

The role of Board of Directors is to

Corporate ethics policies typically apply to____in dealing with _

The financial manager recognizes revenues and expenses utilizing

Managing the firm's liabilities includes all of the following EXCEPT

If a manager's compensation is based on a performance measure such as earnings per share, he/she has an incentive plan.

Where risk is involved, stockholders expect to earn higher rates of return on investments of lowerrisk and vice versa.

The financial manager prepares financial statements that recognize revenue at the point of sale and expenses when incurred.

In a limited partnership, only one partner may assume limited liability, all other partners have to have unlimited liability.

All of the following are measures that can be used as a guide for establishing a corporate ethicspolicy, EXCEPT

The controller is the officer responsible for the firm's financial activities such as financial planning and fund raising, making capital expenditure decisions, and managing cash, credit, the pension fund, and foreign exchange.

Financial Statements, Cash Flows, and Taxes

Financial Statement Analysis

Financial Planning and Forecasting

Financial Markets, Institutions, and Securities

Time Value of Money

Risk and Return

Valuation of Financial Securities

The Cost of Capital

Leverage and Capital Structure

Dividend Policy

Capital Budgeting: Principles and Techniques

Dealing With Project Risk and Other Topics in Capital Budgeting

Working Capital and Management of Current Assets

Management of Current Liabilities

Lease Financing: Concepts and Techniques

Corporate Securities, Derivatives, and Swaps

Mergers and Acquisitions, and Business Failure

International Corporate Finance

Filters

Exam 1: Overview of Corporate Finance

An ethics program is expected to have___________impact on the firm's share price

In __________, owners have limited liability with regard to the business-they are not personally liable for other owners' malpractice.

The primary goal of the financial manager is

The treasurer is the officer responsible for the firm's accounting activities, such as corporateaccounting, tax management, financial accounting, and cost accounting.

The sole proprietor has unlimited liability; only his or her total investment in the business can be taken to satisfy creditors.

Finance can be defined as

The financial manager may be responsible for any of the following EXCEPT

The agency problem may result from a manager's concerns about any of the following EXCEPT

The role of Board of Directors is to

Corporate ethics policies typically apply to____________in dealing with _________

The financial manager recognizes revenues and expenses utilizing

Managing the firm's liabilities includes all of the following EXCEPT

If a manager's compensation is based on a performance measure such as earnings per share, he/she has an incentive plan.

Where risk is involved, stockholders expect to earn higher rates of return on investments of lowerrisk and vice versa.

The financial manager prepares financial statements that recognize revenue at the point of sale and expenses when incurred.

In a limited partnership, only one partner may assume limited liability, all other partners have to have unlimited liability.

All of the following are measures that can be used as a guide for establishing a corporate ethicspolicy, EXCEPT

The controller is the officer responsible for the firm's financial activities such as financial planning and fund raising, making capital expenditure decisions, and managing cash, credit, the pension fund, and foreign exchange.

Financial Statements, Cash Flows, and Taxes

Financial Statement Analysis

Financial Planning and Forecasting

Financial Markets, Institutions, and Securities

Time Value of Money

Risk and Return

Valuation of Financial Securities

The Cost of Capital

Leverage and Capital Structure

Dividend Policy

Capital Budgeting: Principles and Techniques

Dealing With Project Risk and Other Topics in Capital Budgeting

Working Capital and Management of Current Assets

Management of Current Liabilities

Lease Financing: Concepts and Techniques

Corporate Securities, Derivatives, and Swaps

Mergers and Acquisitions, and Business Failure

International Corporate Finance

Filters

Corporate ethics policies typically apply to____in dealing with _