Exam 1

Mariota Industries has sales of $333,840 and costs of $162,770. The company paid $27,270 in interest and $13,300 in dividends. It also increased retained earnings by $65,882 during the year. If the company's depreciation was $17,060, what was its average tax rate?

37.52

cooperation

A business that is a legal entity separate from the owners, yet treated as a legal person

Which one of the following is a working capital management decision? What equipment will be required to complete a project? Should the firm require immediate payment from customers or offer credit terms? What amount of long-term debt is required to complete a project? What percentage of the firm's equity should the firm issue to fund an acquisition? Which one of several acceptable projects should be implemented?

B

A firm owned by two or more people who each have unlimited liability for all of the firm's debts is called a

General partnership

Example of agency cost

Hiring outside accountants to audit the company's financial statements

A limited partnership

Must have at least one general partner

A firm's ______ is the firm's mix of short-term assets and short-term liabilities.

Net working capital

The controller, rather than the treasurer, is typically responsible for

Processing cost reports

Symone sold shares of Naraghi Corporation stock to Aleena. The stock is listed on the NYSE. This trade occurred....

Secondary, auction market

Corporate bylaws

determine how a corporation regulates itself

A limited liability company

is taxed similar to a partnership.

A partnership with four general partners

must distribute 25 percent of the profits to each partner.

Shareholders can replace company management by implementing

proxy fight

When evaluating the timing of a project's projected cash flows, a financial manager is analyzing

when each cash flow is expected to occur