Question 1

The practice generally known as double taxation is due to:

Accepted Answer

A) shareholders' dividends being taxed at both the federal and state levels. 
B) corporate income being taxed at both the federal and state levels. 
C) interest on shareholders' dividends being taxed as income. 
D) corporate incomes being taxed at the corporate level, then again at the shareholder level when corporate profits are paid out as dividends. 
A) shareholders' dividends being taxed at both the federal and state levels. 
B) corporate income being taxed at both the federal and state levels. 
C) interest on shareholders' dividends being taxed as income. 
D) corporate incomes being taxed at the corporate level, then again at the shareholder level when corporate profits are paid out as dividends.

Question 2

Which of the following statements is incorrect?

Accepted Answer

A) Partnerships have unlimited liability. 
B) Most sole proprietors raise money by borrowing from banks. 
C) An advantage of sole proprietorships is that the owner has complete control. 
D) S corporations are considered a hybrid organization. 
A) Partnerships have unlimited liability. 
B) Most sole proprietors raise money by borrowing from banks. 
C) An advantage of sole proprietorships is that the owner has complete control. 
D) S corporations are considered a hybrid organization.

Question 3

Which of the following is an example of aligning managers' personal interests with those of the owners?

Accepted Answer

A) Allow the managers to have as many perks as they request. 
B) Pay the managers high salaries. 
C) Offer the managers an equity stake in the firm. 
D) Trust the managers' actions as they will always act in the owners' best interest. 
A) Allow the managers to have as many perks as they request. 
B) Pay the managers high salaries. 
C) Offer the managers an equity stake in the firm. 
D) Trust the managers' actions as they will always act in the owners' best interest.

Question 4

Which of the following is the firm's highest-level financial manager?

Accepted Answer

A) Chief executive officer 
B) Chief financial officer 
C) Board of directors 
D) Corporate governance 
A) Chief executive officer 
B) Chief financial officer 
C) Board of directors 
D) Corporate governance

Question 5

Maximizing owners' equity value means carefully considering all of the following EXCEPT:

Accepted Answer

A) how to best bring additional funds into the firm. 
B) which projects to invest in. 
C) how best to increase the firm's risk. 
D) how best to return the profits from those projects to the owners over time. 
A) how to best bring additional funds into the firm. 
B) which projects to invest in. 
C) how best to increase the firm's risk. 
D) how best to return the profits from those projects to the owners over time.

Question 6

These individuals help firms access capital markets and advise managers about how to interact with those capital markets.

Accepted Answer

A) Auditors 
B) Investment analysts 
C) Investment bankers 
D) Credit analysts 
A) Auditors 
B) Investment analysts 
C) Investment bankers 
D) Credit analysts

The practice generally known as double taxation is due to:

Which of the following statements is incorrect?

Which of the following is an example of aligning managers' personal interests with those of the owners?

Which of the following is the firm's highest-level financial manager?

Maximizing owners' equity value means carefully considering all of the following EXCEPT:

These individuals help firms access capital markets and advise managers about how to interact with those capital markets.

Reviewing Financial Statements

Analyzing Financial Statements

Time Value of Money 1: Analyzing Single Cash Flows

Time Value of Money 2: Analyzing Annuity Cash Flows

Understanding Financial Markets and Institutions

Valuing Bonds

Valuing Stocks

Characterizing Risk and Return

Estimating Risk and Return

Calculating the Cost of Capital

Estimating Cash Flows on Capital Budgeting Projects

Weighing Net Present Value and Other Capital Budgeting Criteria

Working Capital Management and Policies

Filters

Exam 1: Introduction to Financial Management

The practice generally known as double taxation is due to:

Which of the following statements is incorrect?

Which of the following is an example of aligning managers' personal interests with those of the owners?

Which of the following is the firm's highest-level financial manager?

Maximizing owners' equity value means carefully considering all of the following EXCEPT:

These individuals help firms access capital markets and advise managers about how to interact with those capital markets.

Reviewing Financial Statements

Analyzing Financial Statements

Time Value of Money 1: Analyzing Single Cash Flows

Time Value of Money 2: Analyzing Annuity Cash Flows

Understanding Financial Markets and Institutions

Valuing Bonds

Valuing Stocks

Characterizing Risk and Return

Estimating Risk and Return

Calculating the Cost of Capital

Estimating Cash Flows on Capital Budgeting Projects

Weighing Net Present Value and Other Capital Budgeting Criteria

Working Capital Management and Policies

Filters