BA 323_ Ch.1

Which one of the following applies to a general partnership?

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

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

Cash management

Jamie is employed as a currency trader in the Japanese yen market. Her job falls into which one of the following areas of finance?

International finance

A corporation:

a legal entity separate from its owners

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

agency

Which one of the following functions is generally a responsibility assigned to the corporate treasurer?

capital expenditures

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:

capital structure

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

capital structure management

Which one of the following occupations best fits into the corporate area of finance?

chief financial officer

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?

investments

The primary goal of financial management is most associated with increasing the:

market value of the firm

The goal of financial management is to

maximize the firms value per share of stock

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 the store's debts?

sole proprietorswhip

An agency issue is most apt to develop when:

the control of a firm is separated from the firm's ownership.

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

working capital management