Exam 1: An overview of financial management and the financial environment

The form of organization for a business is not an important issue, as this decision has very little effect on the income and wealth of the firm's owners.

(True/False)

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Question 21

With which of the following statements would most people in business agree?

(Multiple Choice)

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Question 22

Cheers Inc.operates as a partnership.Now the partners have decided to convert the business into a regular corporation.Which of the following statements is CORRECT?

(Multiple Choice)

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Question 23

Money markets are markets for

(Multiple Choice)

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Question 24

Two disadvantages of a proprietorship are (1)the relative difficulty of raising new capital and (2)the owner's unlimited personal liability for the business' debts.

(True/False)

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Question 25

Which of the following statements is NOT CORRECT?

(Multiple Choice)

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Question 26

You recently sold 200 shares of Apple stock to your brother.The transfer was made through a broker, and the trade occurred on the NYSE.This is an example of:

(Multiple Choice)

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Question 27

You recently sold 100 shares of your new company, XYZ Corporation, to your brother at a family reunion.At the reunion your brother gave you a check for the stock and you gave your brother the stock certificates.Which of the following statements best describes this transaction?

(Multiple Choice)

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Question 28

The primary operating goal of a publicly-owned firm interested in serving its stockholders should be to

(Multiple Choice)

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Question 29

Which of the following would be most likely to lead to higher interest rates on all debt securities in the economy?

(Multiple Choice)

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Question 30

Which of the following statements is CORRECT?

(Multiple Choice)

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Question 31

Which of the following statements is CORRECT?

(Multiple Choice)

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Question 32

Which of the following statements is CORRECT?

(Multiple Choice)

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Question 33

Which of the following statements is CORRECT?

(Multiple Choice)

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Question 34

Suppose the U.S.Treasury announces plans to issue $50 billion of new bonds.Assuming the announcement was not expected, what effect, other things held constant, would that have on bond prices and interest rates?

(Multiple Choice)

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Question 35

One drawback of switching from a partnership to the corporate form of organization is the following:

(Multiple Choice)

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Question 36

Which of the following statements is CORRECT?

(Multiple Choice)

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Question 37

Which of the following statements is CORRECT?

(Multiple Choice)

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Question 38

Which of the following could explain why a business might choose to operate as a corporation rather than as a sole proprietorship or a partnership?

(Multiple Choice)

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Question 39

Which of the following statements is CORRECT?

(Multiple Choice)

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Question 40

Showing 21 - 40 of 46

The form of organization for a business is not an important issue, as this decision has very little effect on the income and wealth of the firm's owners.

With which of the following statements would most people in business agree?

Cheers Inc.operates as a partnership.Now the partners have decided to convert the business into a regular corporation.Which of the following statements is CORRECT?

Money markets are markets for

Two disadvantages of a proprietorship are (1)the relative difficulty of raising new capital and (2)the owner's unlimited personal liability for the business' debts.

Which of the following statements is NOT CORRECT?

You recently sold 200 shares of Apple stock to your brother.The transfer was made through a broker, and the trade occurred on the NYSE.This is an example of:

You recently sold 100 shares of your new company, XYZ Corporation, to your brother at a family reunion.At the reunion your brother gave you a check for the stock and you gave your brother the stock certificates.Which of the following statements best describes this transaction?

The primary operating goal of a publicly-owned firm interested in serving its stockholders should be to

Which of the following would be most likely to lead to higher interest rates on all debt securities in the economy?

Which of the following statements is CORRECT?

Which of the following statements is CORRECT?

Which of the following statements is CORRECT?

Which of the following statements is CORRECT?

Suppose the U.S.Treasury announces plans to issue $50 billion of new bonds.Assuming the announcement was not expected, what effect, other things held constant, would that have on bond prices and interest rates?

One drawback of switching from a partnership to the corporate form of organization is the following:

Which of the following statements is CORRECT?

Which of the following statements is CORRECT?

Which of the following could explain why a business might choose to operate as a corporation rather than as a sole proprietorship or a partnership?

Which of the following statements is CORRECT?

Financial statements, cash flow, and taxes

Analysis of financial statements

Time value of money

Bonds, bond valuation, and interest rates

Risk and return

Valuation of stocks and corporations

Financial options and applications in corporate finance

The cost of capital

The basics of capital budgeting: evaluating cash flows

Cash flow estimation and risk analysis

Corporate valuation and financial planning

Agency conflicts and corporate governance

Distributions to shareholders: dividends and repurchases

Capital structure decisions

Supply chains and working capital management

Multinational financial management

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