exam 1 finance

can be sold quickly at close to full value.

Highly liquid assets....

sole proprietorship

Obtaining additional equity is dependent on the owner's personal finances

Financial accounting

Which one of the following functions should be assigned to the treasurer rather than the controller?

Trades from his or her own inventory

Which one of the following is a general characteristic of a securities broker?

How much cash should the firm keep in reserve?

Which one of the following is a working capital decision?

Increasing the size of a firm's operations

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

Obtaining additional equity is dependent on the owner's personal finances.

Which one of the following statements correctly applies to a sole proprietorship?

Dealers buy and sell from their own inventory.

Which one of the following statements related to securities dealers is correct?

Copyright

intangible fixed asset?

A limited liability company:

prefers its profits be taxed as personal income to its owners.

Increase protection against corporate fraud

primary intent of the Sarbanes-Oxley Act of 2002?

tangible fixed assets.

delivery trucks are classified as:

Limited partnership

forms of business organization offers liability protection to some of its owners but not to all of its owners?

A corporation:

has its existence regulated by the rules set forth in its charter.

general partnership?

ny one of the partners can be held solely liable for all of the partnership's debt.

South Wind Products sold 1,000 shares of newly issued stock to Mike.

transactions that occurred in the primary market?

are secondary market transactions.

All stock trades between existing shareholder

provide limited liability while avoiding double taxation.

Limited liability companies are primarily designed to:

decreased the number of U.S. firms going public on foreign exchanges.

the Sarbanes-Oxley Act of 2002 has:

capital structure.

Stadford, Inc. is financed with 40 percent debt and 60 percent equity. This mixture of debt and equity is referred to as the firm's:

Secondary market transaction

Ted currently owns 100 shares of a publicly traded stock which he would like to sell. Which one of the following provides the most efficient means for Ted to sell his shares?

Corporate accounting and financial fraud

The Sarbanes-Oxley Act in 2002 was prompted by which one of the following from the 1990's?

stakeholders.

The federal government has a tax claim on the cash flows of The Window Store. This claim is defined as a claim by one of the firm's:

Maximize the market value of the equity

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

Losses limited to capital invested

advantage of being a limited partner?

Investments

If you accept a job as a domestic security analyst for a brokerage firm, you are most likely working in which one of the following financial areas?

the total debts of the partnership, even if he or she was unaware of those debts

In a general partnership, each partner is personally liable for:

An increase in depreciation

Increase the cash flow from assets for a tax-paying firm, all else constant?

The controller reports directly to the chief financial officer.

Which one of the following correctly defines a common chain of command within a corporation?

Limited partnership

Which one of the following forms of business organization offers liability protection to some of its owners but not to all of its owners?