Finance- Intro to Corporate

Which one of the following best illustrates that the management of a firm is adhering to the goal of financial management?

An increase in the market value per share

Which of the following parties are not considered stakeholders of a firm?

Competitors

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

Proxy

Limited partners benefit from which of the primary advantages?

Their maximum loss cannot exceed the amount of their capital investment.

Sole Proprietorship

has a limited life

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

market value per share of outstanding stock.

A limited partnership:

must have at least one general partner.

Eduardo sold 500 shares of Northcutt Corporation stock on the New York Stock Exchange. This transaction:

occurred in the secondary market.

Financial managers should primarily focus on the interests of:

shareholders.

A firm's mixture of debt and equity financing is the result of its ______ decisions.

A firm's mixture of debt and equity financing is the result of its ______ decisions.

Which one of the following statements is generally correct?

Auction markets match buy and sell orders.

Which one of the following is an agency cost?

Hiring outside accountants to audit the company's financial statements

Which one of the following questions involves a capital structure decision?

How much debt should the firm incur to fund a project?

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

How much inventory should the company keep on hand?

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

Payment of loan interest

Which of the following actions would be most likely to decrease agency costs for the firm?

Reward high performing employees with shares of stock

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

What is the maximum level of cash to be kept in the firm's bank account?

A firm that 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".

A business that is a legal entity separate from the owners, yet treated as a legal person, is called a(n):

corporation

Which form of business would be the best choice if it were necessary to raise large amounts of capital?

corporttion

Corporate bylaws: A. Must be amended should a firm decide to increase the number of shares authorized. B. Cannot be amended once adopted. C. Define the name by which the firm will operate. D. Describe the intended life and purpose of the organization. E. Determine how a corporation regulates itself.

determine how a corporation regulates itself.

he growth of both sole proprietorships and partnerships is frequently limited by the firm's:

inability to raise cash.

Which one of the following is a disadvantage of the corporate form of business?

Distributed profits may experience double taxation.

Which one of the following questions is least likely to be addressed by financial managers?

In which region of the country should a new product be launched?

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

Symone sold shares of Naraghi Corporation stock to Aleena. The stock is listed on the NYSE. This trade occurred in which one of the following?

Secondary, auction market

Which one of the following questions involves a capital budgeting decision? Multiple Choice How many shares of stock should the firm issue? Should the firm purchase a new machine for the production line?Should the firm borrow money to acquire new equipment? How much inventory should the firm keep on hand? bHow much money should be kept in the checking account?

Should the firm purchase a new machine for the production line?

Which one of the following statements is correct?

Taxable income earned by a partnership is treated as individual income.

Usually, the treasurer of a corporation reports directly to the

VP of finance

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

general partnership.