Exam 1: An Overview of Managerial Finance

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The corporate charter is a document filed with the secretary of the state in which a firm is incorporated that provides information about the corporation, including its name, address, directors, and amount of capital stock. 

(True/False)
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Stock price maximization requires _____. 

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The success of financial institutions depends on _____. 

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Which of the following is true of the greater concentration of ownership in non-U.S. firms than in U.S. firms?

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Exchange rate risk is the risk that the cash flows from a foreign project will be worth less than those same cash flows denominated in the parent company's home currency. 

(True/False)
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A limited partner in a limited liability partnership (LLP) is _____. 

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Identify a true statement about a limited liability company (LLC). 

(Multiple Choice)
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The 11 "titles" in the Sarbanes-Oxley Act of 2002 establish standards for accountability and responsibility in reporting financial information for publicly-traded corporations. Which of the following activities does the act provide that a corporation must abide by?

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Financial managers should seek the combination of assets, liabilities, and capital that generate the largest expected projected income in the current accounting period. 

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Which of the following is true of the investment function of finance?

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Which of the following statements is true of earnings per share?

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Which of the following is true of the Sarbanes-Oxley Act of 2002?

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The prices at which the currency of one country can be converted into the currencies of other countries are known as _____. 

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Which of the following is true of financial institutions?

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Identify the correct statement about business ethics. 

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In many countries, the terms under which companies compete, the actions that must be taken or avoided, and the terms of trade of various transactions are determined by _____. 

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The primary goal of a publicly-owned firm interested in serving its stockholders should be to _____. 

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If a limited liability company (LLC) is taxed like a partnership, _____. 

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Which of the following statements is correct?

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Industrial groups that exist in foreign countries are _____. 

(Multiple Choice)
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