Finance 200-Ch. 1

Frequently use accounting information

When conducting a financial analysis of a firm, financial analysts:

has its profits taxed as personal income

a sole proprietorship

losses limited to capital invested

an advantage of being a limited partner

the control of a firm is separated from the firms ownership

an agency issue is most apt to develop when

Stakeholders

an employee has a claim on the cash flows of Martin's Machines. This claim is defined as a claim by one of the firm's....

Any one of the partners can be held solely liable for all of the partnerships debt

applies to a general partnership

size, timing, and risk of future cash flows

capital budgeting includes the evaluation of which of the following

the Sarbanes Oxley act of 2002

essentially made officers of publicly traded firms personally responsible for the firm's financial statements

Capital structure decision

establishing the preferred debt-equity level

it is a working capital decision

how much cash should the firm keep in reserve

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

in a general partnership, each partner is personally liable for

primary intent of the Sarbanes oxley act of 2002

increase the protections against corporate fraud

corporation

is a legal entity separate from its owners

provide limited liability while avoiding double taxation.

limited liability companies are primarily designed to...

basing management bonuses on the length of employment

most apt situation to create an agency conflict

compensating managers with shared of stock that must be held for a minimum of three years

most apt to align managements priorities with shareholders interests

ability to raise larger sums of equity capital than other organizational forms

one advantage of the corporate form of organization is the...

maximize the market value of the equity

primary goal of financial management for a sole proprietorship

corporate accounting and financial fraud

the Sarbanes Oxley act of 2002 was primarily prompted by...

working capital

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

current market value per share

the goal of financial management is to increase the...

Capital Structure Management

Jenna has been promoted and is now in charge of all external financing. in Other words, she is in charge of...

stakeholder

Levi had an unexpected surprise when he returned home this morning. he found that a chemical spill from a local manufacturer had spilled over onto his property. The potential claim that he has against this manufacturer is that of a...

Sole Proprietorship

Margie opened a used bookstore and is both the 100 percent owner and the store's manager. Which type of business entity does Margie own if she is personally liable for all of the store's debts?

Corporation

Matt and Alicia created a firm that is a separate legal entity and will share ownership of that firm on a 75/25 basis. Which type of entity did they create if they have no personal liability for the firm's debts

Agency

The potential conflict of interest between a firm's owners and its managers is referred to as which type of conflict?

the market value of existing stock

The primary goal of financial management is to maximize:

Working Capital Management

Theo's BBQ has $48,000 in current assets and $39,000 in current liabilities. Decisions related to these accounts as referred to as:

Capital Structure

Uptown markets is financed with 45 percent debt and 55 percent equity. This mixture of debt and equity is referred to as the firm's...

there must be at least one general partner

true about a limited partnership

obtaining additional equity is dependent on the owners personal finances

true about a sole proprietorship

limited partnership

which one of the following forms of business organization offers liability protection to someone f its owners but not to all of its owners

General Partnership

will and bill both enjoy sunshine, water, and surfboards. Thus, the two friends decided to create a business together renting surfboards, paddle boats, and inflatable devices in California. Will and Bill will equally share in the decision making and in the business profits or losses. Which type of business did they create if they both have full personal liability for the firm's debts?

determining which customers will be granted credit

working capital management includes

secondary market

you contacted your stock broker this morning and placed an order to sell 300 shares of a stock that trades on the NYSE. this sale will occur in the...