Finan 5000 chapter 1 multiple choice

Which of the following are included in working capital investments?

Accounts payable, accounts receivable, inventory

Which of the following terms is defined as a conflict of interest between the corporate shareholders and the corporate managers?

Agency problem

Which institution transforms the savers short term capital into the users long term capital (loans)?

Commercial bank

Which of the following he'll convince managers to work in the best interest of the stockholders?

Compensation based on the value of stock Stick option plans

Which form of business is most associated with agency problems?

Corporation

Which of these is a working capital management decision?

Determining the minimum level of cash kept in a checking account

Which one of the following beet states primary goal of financial management?

Maximize the current value per share

Which one of the following is a primary market transaction?

Sale of a new share of stock to an individual investor

Shareholder A sold 500 shares of ABC stock on the NYSE. This transaction:

Was facilitated in the secondary market.

A business partner whose potential financial loss in the partnership will not exceed his or her investment in that partnership is called a

limited partnership

A business owned by a solitary individual who has unlimited liability for its debt is called a:

sole proprietorship