Exam 1: An Overview of Managerial Finance

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If a firm's managers want to maximize stock price, it is in their best interests to operate efficient, low-cost plants, develop new and safe products that consumers want, and maintain good relationships with customers, suppliers, creditors, and the communities in which they operate. 

(True/False)
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The proper goal of the financial manager should be to maximize the firm's expected profit, because this will add the most wealth to each of the individual shareholders (owners) of the firm. 

(True/False)
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The riskiness inherent in a firm's earnings per share (EPS) depends on both, the types of projects the firm takes on and the manner in which the projects are financed. 

(True/False)
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Which of the following mathematical expressions computes earnings per share (EPS)?

(Multiple Choice)
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Which of the following is true of a general partner of a limited liability partnership (LLP)?

(Multiple Choice)
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Industrial groups are organizations comprised of companies in different industries with common ownership interests, which include firms necessary to sell and manufacture products. 

(True/False)
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Nations do not have the sovereignty to takeover (expropriate) the assets of a firm without compensation. 

(True/False)
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Which of the following statements is correct?

(Multiple Choice)
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In a competitive marketplace, "good ethics" is a wonderful idea but an impractical standard, because there are simply too few benefits to be gained from maintaining high business ethics. 

(True/False)
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The treasurer of a company is a key subordinate of the _____. 

(Multiple Choice)
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Which of the following statements is true of the concentrated organizational structures of non-U.S. firms?

(Multiple Choice)
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Which of the following is a feature of an S Corporation?

(Multiple Choice)
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Cultural differences do not impact the multinational corporations as they expand into different geographic regions. 

(True/False)
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In the United States, the most common form of business is the _____, and the form of business that generates most of the sales and profits is the _____. 

(Multiple Choice)
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The credit manager is supervised by the _____. 

(Multiple Choice)
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Which of the following statements is correct?

(Multiple Choice)
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Identify the correct statement about a limited liability partnership (LLP). 

(Multiple Choice)
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Compared to corporations, what is the primary disadvantage of partnerships as a form of business organization?

(Multiple Choice)
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Which of the following statements is correct?

(Multiple Choice)
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The Sarbanes-Oxley Act of 2002 requires a publicly-traded corporation to _____. 

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