Finance 323 chapter 1

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

Capital expenditures

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

Cash management

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

Chief financial officer

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

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 applies to a general partnership?

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

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

agency

Tim has been promoted and is now in charge of all fixed asset purchases. In other words, Tim is in charge of:

capital budgeting

Stadford, Inc. is financed with 40 percent debt and 60 percent equity. This mixture of debt and equity is referred to as the firm's:

capital structure

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

A corporation:

is a legal entity separate from its owners.

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

market value of the firm.

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 proprietorship

An agency issue is most apt to develop when:

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

The primary goal of financial management is to maximize:

the market value of existing stock.

Lester's BBQ has $121,000 in current assets and $109,000 in current liabilities. These values as referred to as the firm's:

working capital management