Question 1

A business organisation that is similar to a sole proprietorship but has two or more owners is called a:

Accepted Answer

A) limited liability company 
B) corporation 
C) dual company 
D) partnership 
E) joint stock company 
A) limited liability company 
B) corporation 
C) dual company 
D) partnership 
E) joint stock company

Question 2

The goal of a financial manager should be:-

Accepted Answer

A) to maximise next year's profit 
B) to minimise next year's cost 
C) to maximise the value of the existing owners' equity 
D) to take no risks with shareholders' investments 
E) None of these are appropriate goals 
A) to maximise next year's profit 
B) to minimise next year's cost 
C) to maximise the value of the existing owners' equity 
D) to take no risks with shareholders' investments 
E) None of these are appropriate goals

Question 3

Which one of the following is most likely to create a situation where an agency conflict could arise?

Accepted Answer

A) increasing the size of a firm's operations 
B) downsizing a firm 
C) separating management from ownership 
D) decreasing employee turnover 
E) reducing both management and non-management salaries 
A) increasing the size of a firm's operations 
B) downsizing a firm 
C) separating management from ownership 
D) decreasing employee turnover 
E) reducing both management and non-management salaries

Question 4

Short-term assets and short-term liabilities are referred to as the firm's:

Accepted Answer

A) cash flow 
B) capital budget 
C) capital structure 
D) working capital 
E) financing mix 
A) cash flow 
B) capital budget 
C) capital structure 
D) working capital 
E) financing mix

Question 5

Secondary markets:

Accepted Answer

A) allow borrowers to raise long-term funds 
B) facilitate capital-raising in the primary market 
C) allow borrowers to raise short-term funds 
D) do not raise new funds but offer liquidity 
E) facilitate all of the given answers 
A) allow borrowers to raise long-term funds 
B) facilitate capital-raising in the primary market 
C) allow borrowers to raise short-term funds 
D) do not raise new funds but offer liquidity 
E) facilitate all of the given answers

Question 6

What is the goal of financial management for a sole proprietorship?

Accepted Answer

A) Maximise net income given the current resources of the firm. 
B) Decrease long-term debt to reduce the risk to the owner. 
C) Minimise the tax impact on the proprietor. 
D) Maximise the market value of the equity. 
E) Minimise the reliance on fixed costs. 
A) Maximise net income given the current resources of the firm. 
B) Decrease long-term debt to reduce the risk to the owner. 
C) Minimise the tax impact on the proprietor. 
D) Maximise the market value of the equity. 
E) Minimise the reliance on fixed costs.

Question 7

Which of the following is an example of a primary market transaction?

Accepted Answer

A) ANZ bank issues new shares to a large funds manager in a private placement. 
B) The ANZ bank sells 10-year government bonds that have 5 years to maturity. 
C) Mary sells 1000 Qantas shares through her broker. 
D) BHP issues new bonds which will mature in ten years. 
E) Both A and D are primary market transactions. 
A) ANZ bank issues new shares to a large funds manager in a private placement. 
B) The ANZ bank sells 10-year government bonds that have 5 years to maturity. 
C) Mary sells 1000 Qantas shares through her broker. 
D) BHP issues new bonds which will mature in ten years. 
E) Both A and D are primary market transactions.

Question 8

The daily financial operations of a firm are primarily controlled by managing the:

Accepted Answer

A) total debt level 
B) working capital 
C) capital structure 
D) capital budget 
E) long-term liabilities 
A) total debt level 
B) working capital 
C) capital structure 
D) capital budget 
E) long-term liabilities

Question 9

The top financial officer in a firm is commonly referred to as the:

Accepted Answer

A) chief financial officer 
B) president of finance 
C) controller 
D) treasurer 
E) finance manager 
A) chief financial officer 
B) president of finance 
C) controller 
D) treasurer 
E) finance manager

A business organisation that is similar to a sole proprietorship but has two or more owners is called a:

The goal of a financial manager should be:-

Which one of the following is most likely to create a situation where an agency conflict could arise?

Short-term assets and short-term liabilities are referred to as the firm's:

Secondary markets:

What is the goal of financial management for a sole proprietorship?

Which of the following is an example of a primary market transaction?

The daily financial operations of a firm are primarily controlled by managing the:

The top financial officer in a firm is commonly referred to as the:

Financial Statements, Taxes, and Cash Flow

Working With Financial Statements

Introduction to Valuation: the Time Value of Money

Discounted Cash Flow Valuation

Interest Rates and Bond Valuation

Equity Markets and Stock Valuation

Net Present Value and Other Investment Criteria

Making Capital Investment Decisions

Some Lessons From Capital Market History

Risk and Return

Long-Term Financing

Leverage and Capital Structure

Dividends and Dividend Policy

Raising Capital

Short-Term Financial Planning

Working Capital Management

International Aspects of Financial Management

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Exam 1: Introduction to Financial Management

A business organisation that is similar to a sole proprietorship but has two or more owners is called a:

The goal of a financial manager should be:-

Which one of the following is most likely to create a situation where an agency conflict could arise?

Short-term assets and short-term liabilities are referred to as the firm's:

Secondary markets:

What is the goal of financial management for a sole proprietorship?

Which of the following is an example of a primary market transaction?

The daily financial operations of a firm are primarily controlled by managing the:

The top financial officer in a firm is commonly referred to as the:

Financial Statements, Taxes, and Cash Flow

Working With Financial Statements

Introduction to Valuation: the Time Value of Money

Discounted Cash Flow Valuation

Interest Rates and Bond Valuation

Equity Markets and Stock Valuation

Net Present Value and Other Investment Criteria

Making Capital Investment Decisions

Some Lessons From Capital Market History

Risk and Return

Long-Term Financing

Leverage and Capital Structure

Dividends and Dividend Policy

Raising Capital

Short-Term Financial Planning

Working Capital Management

International Aspects of Financial Management

Filters