Question 1

Managerial lines of authority,legal responsibility and the allocation of income and risk are directly related to the form the organization takes.

Accepted Answer

A) True 
 B)False  True

Question 2

Financial statements that must be included in the annual report include the:

Accepted Answer

A) income statement 
B) balance sheet 
C) statement of cash flows 
D) all of the above 
E) none of the above 
A) income statement 
B) balance sheet 
C) statement of cash flows 
D) all of the above 
E) none of the above D

Question 3

Limited partners face liability limited to their investment in the firm,but they can participate in the operations of the firm.

Accepted Answer

A) True 
 B)False  False

Question 4

Which of the following would not be a use of funds?

Accepted Answer

A) increase in an asset account 
B) decrease in a liability account 
C) decrease in an equity account 
D) all the above are uses of funds 
A) increase in an asset account 
B) decrease in a liability account 
C) decrease in an equity account 
D) all the above are uses of funds

Question 5

proprietorships are the most widely used form although they are generally the smallest organizations in terms of assets.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A) job security 
B) personal wealth 
C) embezzlement 
D) company provided perquisites 
E) none of the above 
A) job security 
B) personal wealth 
C) embezzlement 
D) company provided perquisites 
E) none of the above

Question 7

On the income statement,net profit after tax is defined as:

Accepted Answer

A) operating profit minus operating expenses 
B) operating profit minus cost of goods sold 
C) operating profit minus interest 
D) operating profit minus interest minus taxes 
E) none of the above 
A) operating profit minus operating expenses 
B) operating profit minus cost of goods sold 
C) operating profit minus interest 
D) operating profit minus interest minus taxes 
E) none of the above

Question 8

Which of the following are required to file annual reports with the Securities and Exchange Commission?

Accepted Answer

A) proprietorships 
B) partnerships 
C) public corporations 
D) all the above 
A) proprietorships 
B) partnerships 
C) public corporations 
D) all the above

Question 9

The marginal tax rate is the rate paid on the last dollar of income.

Accepted Answer

A) True 
 B)False

Question 10

Implicit agency costs:

Accepted Answer

A) may harm shareholders 
B) do not have a direct expense associated with them 
C) may include restrictive covenants 
D) all the above 
E) none of the above 
A) may harm shareholders 
B) do not have a direct expense associated with them 
C) may include restrictive covenants 
D) all the above 
E) none of the above

Question 11

The 2002 Sarbanes-Oxley Act was designed to:

Accepted Answer

A) limit the compensation that could be paid to CEOs. 
B) eliminate the many disclosure and conflict of interest problems of corporations 
C) provide uniform international accounting standards 
D) two of the above 
E) none of the above 
A) limit the compensation that could be paid to CEOs. 
B) eliminate the many disclosure and conflict of interest problems of corporations 
C) provide uniform international accounting standards 
D) two of the above 
E) none of the above

Question 12

All of the following accounts are considered to be fixed assets on the balance sheet except:

Accepted Answer

A) buildings 
B) equipment 
C) plant 
D) machinery 
E) all of the above are fixed assets 
A) buildings 
B) equipment 
C) plant 
D) machinery 
E) all of the above are fixed assets

Question 13

The current liabilities of a business may include:

Accepted Answer

A) notes payable 
B) accounts receivable 
C) prepaid expenses 
D) depreciation reserves 
A) notes payable 
B) accounts receivable 
C) prepaid expenses 
D) depreciation reserves

Question 14

The market value added measures the value created by the firm's managers.

Accepted Answer

A) True 
 B)False

Question 15

Which one of the following is not a basic function of financial management?

Accepted Answer

A) financial planning and analysis 
B) acquiring other business firms 
C) asset management 
D) raising of funds 
A) financial planning and analysis 
B) acquiring other business firms 
C) asset management 
D) raising of funds

Question 16

The net working capital of a firm would be cash and other assets that are expected to be converted into cash within a year.

Accepted Answer

A) True 
 B)False

Question 17

The bylaws are the rules established to govern the corporation and include how the firm will be managed.

Accepted Answer

A) True 
 B)False

Question 18

A business organization that receives the limited liability of a corporation but is taxed as a proprietorship or partnership is called a:

Accepted Answer

A) limited proprietorship 
B) limited partnership 
C) limited corporation 
D) S corporation 
A) limited proprietorship 
B) limited partnership 
C) limited corporation 
D) S corporation

Question 19

Which of the following business organizations limit the liability of some or all of their owners to the extent of their investment in the company?

Accepted Answer

A) proprietorships and partnerships 
B) corporations and proprietorships 
C) limited partnerships and proprietorships 
D) corporations and limited partnerships 
A) proprietorships and partnerships 
B) corporations and proprietorships 
C) limited partnerships and proprietorships 
D) corporations and limited partnerships

Question 20

Computation of a firm's market value added (MVA)includes all of the components EXCEPT:

Accepted Answer

A) market value of equity 
B) market value of debt 
C) book value of equity 
D) book value of debt 
E) all of the above are included 
A) market value of equity 
B) market value of debt 
C) book value of equity 
D) book value of debt 
E) all of the above are included

Managerial lines of authority,legal responsibility and the allocation of income and risk are directly related to the form the organization takes.

Financial statements that must be included in the annual report include the:

Limited partners face liability limited to their investment in the firm,but they can participate in the operations of the firm.

Which of the following would not be a use of funds?

proprietorships are the most widely used form although they are generally the smallest organizations in terms of assets.

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

On the income statement,net profit after tax is defined as:

Which of the following are required to file annual reports with the Securities and Exchange Commission?

The marginal tax rate is the rate paid on the last dollar of income.

Implicit agency costs:

The 2002 Sarbanes-Oxley Act was designed to:

All of the following accounts are considered to be fixed assets on the balance sheet except:

The current liabilities of a business may include:

The market value added measures the value created by the firm's managers.

Which one of the following is not a basic function of financial management?

The net working capital of a firm would be cash and other assets that are expected to be converted into cash within a year.

The bylaws are the rules established to govern the corporation and include how the firm will be managed.

A business organization that receives the limited liability of a corporation but is taxed as a proprietorship or partnership is called a:

Which of the following business organizations limit the liability of some or all of their owners to the extent of their investment in the company?

Computation of a firm's market value added (MVA)includes all of the components EXCEPT:

The Financial Environment

Money and the Monetary System

Banks and Other Financial Institutions

Federal Reserve System

Policy Makers and the Money Supply

International Finance and Trade

Savings and Investment Process

Interest Rates

Time Value of Money

Bonds and Stocks: Characteristics and Valuation

Securities Markets

Financial Return and Risk Concepts

Financial Analysis and Long-Term Financial Planning

Managing Working Capital

Short-Term Business Financing

Capital Budgeting Analysis

Capital Structure and the Cost of Capital

Filters

Exam 13: Business Organization and Financial Data

Managerial lines of authority,legal responsibility and the allocation of income and risk are directly related to the form the organization takes.

Financial statements that must be included in the annual report include the:

Limited partners face liability limited to their investment in the firm,but they can participate in the operations of the firm.

Which of the following would not be a use of funds?

proprietorships are the most widely used form although they are generally the smallest organizations in terms of assets.

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

On the income statement,net profit after tax is defined as:

Which of the following are required to file annual reports with the Securities and Exchange Commission?

The marginal tax rate is the rate paid on the last dollar of income.

Implicit agency costs:

The 2002 Sarbanes-Oxley Act was designed to:

All of the following accounts are considered to be fixed assets on the balance sheet except:

The current liabilities of a business may include:

The market value added measures the value created by the firm's managers.

Which one of the following is not a basic function of financial management?

The net working capital of a firm would be cash and other assets that are expected to be converted into cash within a year.

The bylaws are the rules established to govern the corporation and include how the firm will be managed.

A business organization that receives the limited liability of a corporation but is taxed as a proprietorship or partnership is called a:

Which of the following business organizations limit the liability of some or all of their owners to the extent of their investment in the company?

Computation of a firm's market value added (MVA)includes all of the components EXCEPT:

The Financial Environment

Money and the Monetary System

Banks and Other Financial Institutions

Federal Reserve System

Policy Makers and the Money Supply

International Finance and Trade

Savings and Investment Process

Interest Rates

Time Value of Money

Bonds and Stocks: Characteristics and Valuation

Securities Markets

Financial Return and Risk Concepts

Financial Analysis and Long-Term Financial Planning

Managing Working Capital

Short-Term Business Financing

Capital Budgeting Analysis

Capital Structure and the Cost of Capital

Filters