Question 1

One reason for the existence of agency problems between managers and share holders is that

Accepted Answer

A)  there is a separation of ownership and control of the firm. 
B)  managers know how to manage the firm better than shareholders. 
C)  shareholders have unreasonable expectations about managerial performance. 
D)  none of the above 
A)  there is a separation of ownership and control of the firm. 
B)  managers know how to manage the firm better than shareholders. 
C)  shareholders have unreasonable expectations about managerial performance. 
D)  none of the above

Question 2

Which of the following does maximizing shareholder wealth not usually account for?

Accepted Answer

A)  Risk. 
B)  Government regulation. 
C)  The timing of cash flows. 
D)  Amount of cash flows. 
A)  Risk. 
B)  Government regulation. 
C)  The timing of cash flows. 
D)  Amount of cash flows.

Question 3

A patent is a productive asset for a technology-based firm.

Accepted Answer

A) True 
 B)False

Question 4

The local Republican Party is a stakeholder in a local firm that makes no political donations to either party.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is considered a hybrid organizational form?

Accepted Answer

A)  sole proprietorship 
B)  partnership 
C)  corporation 
D)  limited liability partnership 
A)  sole proprietorship 
B)  partnership 
C)  corporation 
D)  limited liability partnership

One reason for the existence of agency problems between managers and share holders is that

Which of the following does maximizing shareholder wealth not usually account for?

A patent is a productive asset for a technology-based firm.

The local Republican Party is a stakeholder in a local firm that makes no political donations to either party.

Which of the following is considered a hybrid organizational form?

The Financial System and the Level of Interest Rates

Financial Statements, Cash Flows and Tax

Analysing Financial Statements

The Time Value of Money

Discounted Cash Flows and Valuation

Risk and Return

Bond Valuation and the Structure of Interest Rates

Share Valuation

The Fundamentals of Capital Budgeting

Cash Flows and Capital Budgeting

Evaluating Project Economics and Capital Rationing

The Cost of Capital

Working Capital Management

How Companies Raise Capital

Capital Structure Policy

Dividends and Dividend Policy

Business Formation, Growth and Valuation

Strategic Financial Planning and Forecasting

Options and Corporate Finance

International Financial Management

Filters

Exam 1: The Financial Manager and the Company

One reason for the existence of agency problems between managers and share holders is that

Which of the following does maximizing shareholder wealth not usually account for?

A patent is a productive asset for a technology-based firm.

The local Republican Party is a stakeholder in a local firm that makes no political donations to either party.

Which of the following is considered a hybrid organizational form?

The Financial System and the Level of Interest Rates

Financial Statements, Cash Flows and Tax

Analysing Financial Statements

The Time Value of Money

Discounted Cash Flows and Valuation

Risk and Return

Bond Valuation and the Structure of Interest Rates

Share Valuation

The Fundamentals of Capital Budgeting

Cash Flows and Capital Budgeting

Evaluating Project Economics and Capital Rationing

The Cost of Capital

Working Capital Management

How Companies Raise Capital

Capital Structure Policy

Dividends and Dividend Policy

Business Formation, Growth and Valuation

Strategic Financial Planning and Forecasting

Options and Corporate Finance

International Financial Management

Filters