Question 1

The treasurer is commonly responsible for

Accepted Answer

A)  taxes. 
B)  data processing. 
C)  making capital expenditures. 
D)  cost accounting. 
A)  taxes. 
B)  data processing. 
C)  making capital expenditures. 
D)  cost accounting.

Question 2

The president or chief executive officer is elected by the firm's stockholders and has ultimate authority to guide corporate affairs and make general policy.

Accepted Answer

A) True 
 B)False

Question 3

Career opportunities in financial services include all of the following EXCEPT

Accepted Answer

A)  investments. 
B)  real estate and insurance. 
C)  capital expenditures management. 
D)  personal financial planning. 
A)  investments. 
B)  real estate and insurance. 
C)  capital expenditures management. 
D)  personal financial planning.

Question 4

Emerging trends resulting from the agency problem are all of the following EXCEPT

Accepted Answer

A)  large private corporations. 
B)  restructuring through leveraged buyouts. 
C)  management by active investors. 
D)  prohibiting managers from maintaining an ownership interest. 
A)  large private corporations. 
B)  restructuring through leveraged buyouts. 
C)  management by active investors. 
D)  prohibiting managers from maintaining an ownership interest.

Question 5

Which of the following legal forms of organization's income is NOT taxed under individual income tax rate?

Accepted Answer

A)  Sole proprietorships. 
B)  Partnerships. 
C)  Limited partnership. 
D)  Corporation. 
A)  Sole proprietorships. 
B)  Partnerships. 
C)  Limited partnership. 
D)  Corporation.

Question 6

Dividend payments change directly with changes in earnings per share.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following legal forms of organization is characterized by limited liability?

Accepted Answer

A)  Sole proprietorship. 
B)  Partnership. 
C)  Corporation. 
D)  Professional partnership. 
A)  Sole proprietorship. 
B)  Partnership. 
C)  Corporation. 
D)  Professional partnership.

Question 8

Marginal analysis states that financial decisions should be made and actions taken only when

Accepted Answer

A)  demand equals supply. 
B)  benefits equal costs. 
C)  added benefits exceed added costs. 
D)  added benefits are greater than zero. 
A)  demand equals supply. 
B)  benefits equal costs. 
C)  added benefits exceed added costs. 
D)  added benefits are greater than zero.

Question 9

The implementation of a pro-active ethics program is expected to result in

Accepted Answer

A)  a positive corporate image and increased respect, but is not expected to affect cash flows. 
B)  an increased share price resulting from a decrease in risk, but is not expected to affect cash flows. 
C)  a positive corporate image and increased respect, but is not expected to affect share price. 
D)  a positive corporate image and increased respect, a reduction in risk, and enhanced cash flow resulting in an increase in share price. 
A)  a positive corporate image and increased respect, but is not expected to affect cash flows. 
B)  an increased share price resulting from a decrease in risk, but is not expected to affect cash flows. 
C)  a positive corporate image and increased respect, but is not expected to affect share price. 
D)  a positive corporate image and increased respect, a reduction in risk, and enhanced cash flow resulting in an increase in share price.

Question 10

Managerial finance is concerned with design and delivery of advice and financial products to individuals, business, and government.

Accepted Answer

A) True 
 B)False

Question 11

The wealth of the owners of a corporation is represented by

Accepted Answer

A)  profits. 
B)  earnings per share. 
C)  share value. 
D)  cash flow. 
A)  profits. 
B)  earnings per share. 
C)  share value. 
D)  cash flow.

Question 12

In partnerships, a partner can readily transfer his/her wealth to other partners.

Accepted Answer

A) True 
 B)False

Question 13

Agency costs include all of the following EXCEPT

Accepted Answer

A)  bonding and structuring expenses. 
B)  cost of goods sold. 
C)  monitoring expenditures. 
D)  opportunity costs. 
A)  bonding and structuring expenses. 
B)  cost of goods sold. 
C)  monitoring expenditures. 
D)  opportunity costs.

Question 14

________ is concerned with the duties of the financial manager in the business firm.

Accepted Answer

A)  Financial Services 
B)  Financial Manager 
C)  Managerial Finance 
D)  None of the above 
A)  Financial Services 
B)  Financial Manager 
C)  Managerial Finance 
D)  None of the above

Question 15

The major purpose of the Sarbanes-Oxley Act of 2002 was to place caps on the compensation that could be paid to corporate executives.

Accepted Answer

A) True 
 B)False

Question 16

The likelihood that managers may place personal goals ahead of corporate goals is called the agency problem.

Accepted Answer

A) True 
 B)False

Question 17

In large companies, the project finance manager is responsible for coordinating the assets and liabilities of the employees' pension fund.

Accepted Answer

A) True 
 B)False

Question 18

The accountant evaluates financial statements, develops additional data, and makes decisions based on his or her assessment of the associated returns and risks.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following legal forms of organization is most expensive to organize?

Accepted Answer

A)  Sole proprietorships. 
B)  Partnerships. 
C)  Corporations. 
D)  Limited partnership. 
A)  Sole proprietorships. 
B)  Partnerships. 
C)  Corporations. 
D)  Limited partnership.

Question 20

An effective ethics program can

Accepted Answer

A)  weakened corporate value. 
B)  had no effect on a corporation's value 
C)  enhance a corporation's value. 
D)  be thought of as unimportant to corporate owners. 
A)  weakened corporate value. 
B)  had no effect on a corporation's value 
C)  enhance a corporation's value. 
D)  be thought of as unimportant to corporate owners.

The treasurer is commonly responsible for

The president or chief executive officer is elected by the firm's stockholders and has ultimate authority to guide corporate affairs and make general policy.

Career opportunities in financial services include all of the following EXCEPT

Emerging trends resulting from the agency problem are all of the following EXCEPT

Which of the following legal forms of organization's income is NOT taxed under individual income tax rate?

Dividend payments change directly with changes in earnings per share.

Which of the following legal forms of organization is characterized by limited liability?

Marginal analysis states that financial decisions should be made and actions taken only when

The implementation of a pro-active ethics program is expected to result in

Managerial finance is concerned with design and delivery of advice and financial products to individuals, business, and government.

The wealth of the owners of a corporation is represented by

In partnerships, a partner can readily transfer his/her wealth to other partners.

Agency costs include all of the following EXCEPT

________ is concerned with the duties of the financial manager in the business firm.

The major purpose of the Sarbanes-Oxley Act of 2002 was to place caps on the compensation that could be paid to corporate executives.

The likelihood that managers may place personal goals ahead of corporate goals is called the agency problem.

In large companies, the project finance manager is responsible for coordinating the assets and liabilities of the employees' pension fund.

The accountant evaluates financial statements, develops additional data, and makes decisions based on his or her assessment of the associated returns and risks.

Which of the following legal forms of organization is most expensive to organize?

An effective ethics program can

The Financial Market Environment

Financial Statements and Ratio Analysis

Cash Flow and Financial Planning

Time Value of Money

Interest Rates and Bond Valuation

Stock Valuation

Risk and Return

The Cost of Capital

Capital Budgeting Techniques

Capital Budgeting Cash Flows

Risk and Refinements in Capital Budgeting

Leverage and Capital Structure

Payout Policy

Working Capital and Current Assets Management

Current Liabilities Management

Hybrid and Derivative Securities

Mergers, Lbos, Divestitures, and Business Failure

International Managerial Finance

Filters

Exam 1: The Role of Managerial Finance

The treasurer is commonly responsible for

The president or chief executive officer is elected by the firm's stockholders and has ultimate authority to guide corporate affairs and make general policy.

Career opportunities in financial services include all of the following EXCEPT

Emerging trends resulting from the agency problem are all of the following EXCEPT

Which of the following legal forms of organization's income is NOT taxed under individual income tax rate?

Dividend payments change directly with changes in earnings per share.

Which of the following legal forms of organization is characterized by limited liability?

Marginal analysis states that financial decisions should be made and actions taken only when

The implementation of a pro-active ethics program is expected to result in

Managerial finance is concerned with design and delivery of advice and financial products to individuals, business, and government.

The wealth of the owners of a corporation is represented by

In partnerships, a partner can readily transfer his/her wealth to other partners.

Agency costs include all of the following EXCEPT

________ is concerned with the duties of the financial manager in the business firm.

The major purpose of the Sarbanes-Oxley Act of 2002 was to place caps on the compensation that could be paid to corporate executives.

The likelihood that managers may place personal goals ahead of corporate goals is called the agency problem.

In large companies, the project finance manager is responsible for coordinating the assets and liabilities of the employees' pension fund.

The accountant evaluates financial statements, develops additional data, and makes decisions based on his or her assessment of the associated returns and risks.

Which of the following legal forms of organization is most expensive to organize?

An effective ethics program can

The Financial Market Environment

Financial Statements and Ratio Analysis

Cash Flow and Financial Planning

Time Value of Money

Interest Rates and Bond Valuation

Stock Valuation

Risk and Return

The Cost of Capital

Capital Budgeting Techniques

Capital Budgeting Cash Flows

Risk and Refinements in Capital Budgeting

Leverage and Capital Structure

Payout Policy

Working Capital and Current Assets Management

Current Liabilities Management

Hybrid and Derivative Securities

Mergers, Lbos, Divestitures, and Business Failure

International Managerial Finance

Filters