Exam 1: Introduction to Financial Management

Jamie is employed as a commercial loan officer for a regional bank centered in the midwestern section of the U.S.Her job falls into which one of the following areas of finance?

Give an example of a potential agency problem for a corporation and identify means by which the firm can help reduce or eliminate that problem.

A sole proprietorship:

Which of the following are effective means of aligning management goals with shareholder interests? I.Employee stock options II.Threat of a takeover III.Management bonuses tied to performance goals IV.Threat of a proxy fight

Todd and Cathy created a firm that is a separate legal entity and will share ownership of that firm on a 50-50 basis.Which type of entity did they create if they have no personal liability for the firm's debts?

Which one of the following statements about a limited partnership is correct?

Lester's BBQ has $121,000 in current assets and $109,000 in current liabilities.These values as referred to as the firm's:

Which one of the following forms of business organization offers liability protection to some of its owners but not to all of its owners?

The federal government has a tax claim on the cash flows of The Window Store.This claim is defined as a claim by one of the firm's:

The Sarbanes-Oxley Act:

Stadford,Inc.is financed with 40 percent debt and 60 percent equity.This mixture of debt and equity is referred to as the firm's:

The Sarbanes-Oxley Act of 2002 has:

The "say on pay" portion of the Dodd-Frank Wall Street Reform and Consumer Protection Act requires corporations to do which one of the following?

Working capital management includes which one of the following?

Will and Bill both enjoy sunshine,water,and surfboards.Thus,the two friends decided to create a business together renting surfboards,paddle boats,and inflatable devices in California.Will and Bill will equally share in the decision making and in the profits or losses.Which type of business did they create if they both have full personal liability for the firm's debts?

Which of the following are advantages of the corporate form of organization? I.Ability to raise large sums of equity capital II.Ease of ownership transfer III.Profits taxed at the corporate level IV.Limited liability for all owners

Which one of the following is an advantage of being a limited partner?

An auction market:

Which one of the following applies to a general partnership?

Marti had an unexpected surprise when she ate her Lotsa Good cereal this morning.She found a piece of metal mixed in her cereal.The potential claim that Marti has against this firm is that of a(n):