FRL 3000 Ch 1

inventory is

- part of working capital - current asset

Which one of the following is an unintended result of the Sarbanes-Oxley Act?

Corporations delisting from major exchanges

general partnership has which of the following characteristics?

Difficult to transfer ownership each owner as unlimited liability

Which one of the following actions by a financial manager is most apt to create an agency problem?

Increasing current profits when doing so lowers the value of the company's equity

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

Processing cost reports

Which one of the following grants an individual the right to vote on behalf of a shareholder?

Proxy

Which one of the following is a working capital management decision?

Should the firm pay cash for a purchase or use the credit offered by the supplier?

Who generally reports to the CFO?

Treasurer and Controller

The treasurer of a corporation generally reports directly to the?

VP of Finance

Financial managers should strive to maximize the current value per share of the existing stock to

best represent the interests of the current shareholders.

which of the following can be used to encourage managers to act in the best interests of shareholders

better prospects for promotion managerial compensation tied to performance

A firm which opts to "go dark" in response to the Sarbanes-Oxley Act:

can provide less information to its shareholders than it did prior to "going dark".

which term applies to the mixture of debt and equity maintained by a firm

capital structure

The decision to issue additional shares of stock is an example of:

capital structure decision

the officer responsible for corporate tax reporting is

controller

Which business form is best suited to raising large amounts of capital?

corporations

Agency problems are most associated with:

corporations.

A bad financial decision is defined as a decision that ______ owners equity

decrease

in financial markets, debt, and ________ securities are bought and sold

equity

the primary responsibility of financial managers is to increase the value

existing shares of stock

A business formed by two or more individuals who each have unlimited liability for all of the firm's business debts is called a:

general partnership

A limited partnership:

has at least one partner who has unlimited liability for all of the partnership's debts.

Capital structure decisions include determining:

how much debt should be assumed to fund a project.

Which one of the following statements concerning a sole proprietorship is correct?

limited

capital budgeting is concerned with planning and mangeing

long investment terms

in a large corporation, the financial manager is primary responsible for:

long term investments Financing Decisions Financing aspect of operations

Decisions made by financial managers should primarily focus on increasing the:

market value per share of outstanding stock

what is the main goal of financial management?

maximize the current value per share of the existing stock

organized uaction market includes

new york stock exchange

Which one of the following is a cash flow from a corporation into the financial markets?

payment on loan interest

Which one of the following represents a cash outflow from a corporation?

payments of dividends

which of the following is included in working capital?

short-term assets accounts payable accounts receivable

A business owned by a solitary individual who has unlimited liability for the firm's debt is called a:

sole proprietorship

is someone other than an owner or a creditor who potentially has a claim for cashflows for him

stakeholder

Working capital management decisions include determining:

the minimum level of cash to be kept in a checking account.

the officer responsible for managing firms cash flow

treasurer

Shareholder A sold 500 shares of ABC stock on the New York Stock Exchange. This transaction:

was facilitated in the secondary market.

An example of a capital budgeting decision is deciding:

whether or not to purchase a new machine for the production line.

A firm's short-term assets and its short-term liabilities are referred to as the firm's:

working capital