Exam 1: Introduction to Financial Management

For corporations, maximizing the value of owner's equity can also be stated as

A legal duty between two parties where one party must act in the interest of the other party.

Between corporate managers and stockholders, this can create ethical dilemmas.

This subarea of finance looks at firm decisions in acquiring and utilizing cash received from investors or from retained earnings.

The portion of a company's profits that are kept by the company rather than distributed to the stockholders as cash dividends is referred to as _______________.

The overall goal of the financial manager is to _________________.

The opportunity to buy stock at a fixed price over a specific period of time is referred to as _____.

This subarea of finance is important for adapting to the global economy.

All of the following are an example of a fiduciary relationship except:

What is the difference in perspective between finance and accounting?

Which of the following is NOT considered a hybrid organization?

Which of the following personal decisions is NOT impacted by finance?

A potential future negative impact to value and/or cash flows is often discussed in terms of probability of loss and the expected magnitude of the loss. This is called _________.

The financial crisis that started in 2006 was magnified by which of the following:

Outside parties that monitor the firm include all of the following except _______.

Agency problems exist in which forms of business ownership?

This should be the primary objective of a firm as it may actually be the most beneficial for society in the long run.

Which of the following statements is correct?

Nonwage compensation which might actually enhance owner value, in that such items may boost managers' productivity.

Which of the following managers would NOT use finance?