Exam 1: The Role of Managerial Finance

A major weakness of a partnership is

The wealth of corporate owners is measured by the share price of the stock.

One way often used to insure that management decisions are in the best interest of the stockholders is to

The accountant recognizes revenues and expenses on

The financial manager must look beyond financial statements to obtain insight into developing or existing problems since the accrual accounting data do not fully describe the circumstances of a firm.

High cash flow is generally associated with a higher share price whereas higher risk tends to result in a lower share price.

When considering each financial decision alternative or possible action in terms of its impact on the share price of the firm's stock, financial managers should accept only those actions that are expected to increase the firm's profitability.

The primary goal of the financial manager is

Under which of the following legal forms of organization, is ownership readily transferable?

Higher cash flow and greater risk

The accrual method recognizes revenue at the point of sale and recognizes expenses when incurred.

All of the following as considered stakeholders EXCEPT

Wealth maximization as the goal of the firm implies enhancing the wealth of

The corporate controller typically handles the accounting activities, such as tax management, data processing, and cost and financial accounting.

In planning and managing the requirements of the firm, the financial manager is concerned with

The responsibility for managing day-to-day operations and carrying out corporate policies belongs to the

Financial analysis and planning involve all of the following EXCEPT

The key role of the financial manager is

Among solutions to the agency problem in publicly-held corporations are all of the following EXCEPT

Finance can be defined as