Exam 1: Overview of Corporate Finance

When determining a firm's level of net income, accountants use

A firm's articles of incorporation and bylaws, along with government legislation, provide shareholders with a framework on how their firm will be governed.

Career opportunities in financial services include all of the following EXCEPT

One key output of the financial forecasting process are:

The financial manager must look beyond financial statements to obtain insight into developing or existing problems since the accrual accounting data do not fully describe the circumstances of a firm.

Emerging trends resulting from the agency problem are all of the following EXCEPT

The key activities of the financial manager include all of the following EXCEPT

When considering each financial decision alternative or possible action in terms of its impact on the share price of the firm's stock, financial managers should accept only those actions that areexpected to increase the firm's short-term profitability.

Economic theories that the financial manager must be able to utilize for efficient businessoperations, include

An agency problem is the acquisition of a firm by another firm or group that is not supported by management.

The capital expenditures analyst/manager is responsible for the evaluation and recommendation of proposed asset investments and may be involved in the financial aspects of implementation of approved investments.

A firm has just ended its calendar year making a sale in the amount of $200,000 of merchandise purchased during the year at a total cost of $150,500. Although the firm paid in full for the merchandise during the year, it has yet to collect at year end from the customer. The possible problem this firm may face is

The key role of the financial manager is

A financial manager must choose between four alternative investments, 1, 2, 3, and 4. Each asset is expected to provide earnings over a three-year period as described below. Asset Year 1 Year 2 Year 3 1 \ 21,000 \ 15,000 \ 9,000 2 9,000 15,000 21,000 3 3,000 18,000 19,000 4 6,000 12,000 12,000 Based on the profit maximization goal, the financial manager would choose

Joe Tootoosis and Frank Inn were working partners in a partnership that failed; at failure, the partnership debt was $100,000. If Frank Inn has no assets, Joe Tootoosis could be held liable for the entire $100,000.

Financing decisions deal with the left-hand side of the firm's balance sheet and involve the mostappropriate mix of current and fixed assets.

Under which of the following legal forms of organization, is ownership readily transferable?

The goal of ethics is to motivate business and market participants to adhere to both the letter and the spirit of laws and regulations in all aspects of business and professional practice.

Financial analysis and planning is concerned with analyzing the mix of assets and liabilities.

The accountant may be responsible for any of the following EXCEPT