Exam 1: The Role and Objective of Financial Management

Shareholder wealth is measured by the .

Sole proprietorships, partnerships and corporations are the three main forms of business organization.There are other types which are referred to as hybrids.Examples of hybrid business forms are:

Which of the following statements is/are correct?

The most widely accepted objective of the firm is to

Shareholder wealth is measured by the of the shareholders' common stock holdings.

There are problems with using the "profit maximization" criterion.Which of the following is/are correct? I.Profit maximization has an ambiguous definition of "maximizing profits".

Although this type of business generates less than 6% of the total U.S.business revenue, make up approximately 75% of all businesses.

The major factors that determine the market value of a company's shares of stock include the .

Since small business owners have much of their own money tied up in their business, small business owners are most concerned with:

equals the number of shares outstanding times the market price per share.

Financial managers can take a variety of actions to influence the market value of a company's stock. All of the following are classifications of actions taken EXCEPT:

All of the following economic environment factors affect stock prices except:

The accountant's role in the firm is to do all of the following except:

Agency costs include all of the following except:

A potential agency conflict can arise between stockholders and creditors because owners may

Corporate securities represent claims against the

The chief financial officer (CFO) of a corporation normally reports to the of the company.

According to the Small Business Administration, what percent of all businesses are considered small businesses?

The primary objective of the firm is:

Agency problems may give rise to costs that the market value of firms.