Question 1

The rules by which corporations govern themselves are called

Accepted Answer

A) indenture provisions. 
B) indemnity provisions. 
C) bylaws. 
D) charter agreements. 
E) articles of incorporation. 
A) indenture provisions. 
B) indemnity provisions. 
C) bylaws. 
D) charter agreements. 
E) articles of incorporation.

Question 2

A limited partnership generally

Accepted Answer

A) has less of an ability to raise capital than a proprietorship. 
B) has 10 or more limited partners and no general partners. 
C) permits limited partners to sell their ownership interest without the partnership terminating. 
D) is taxed the same as a corporation. 
E) provides for the transfer of a general partner's ownership interest to any outside party. 
A) has less of an ability to raise capital than a proprietorship. 
B) has 10 or more limited partners and no general partners. 
C) permits limited partners to sell their ownership interest without the partnership terminating. 
D) is taxed the same as a corporation. 
E) provides for the transfer of a general partner's ownership interest to any outside party.

Question 3

A stakeholder is best described as any

Accepted Answer

A) person or entity owning shares of corporate stock. 
B) person or entity having voting rights based on stock ownership. 
C) current manager who was involved in a firm's creation. 
D) creditor to whom the firm currently owes money. 
E) person or entity,other than a stockholder or creditor,who potentially has a claim on a firm's cash. 
A) person or entity owning shares of corporate stock. 
B) person or entity having voting rights based on stock ownership. 
C) current manager who was involved in a firm's creation. 
D) creditor to whom the firm currently owes money. 
E) person or entity,other than a stockholder or creditor,who potentially has a claim on a firm's cash.

Question 4

Insider trading is

Accepted Answer

A) illegal. 
B) impossible to have in our efficient market. 
C) legal. 
D) discouraged,but legal. 
E) defined as the trading of stock by a corporate director based on publicly available information. 
A) illegal. 
B) impossible to have in our efficient market. 
C) legal. 
D) discouraged,but legal. 
E) defined as the trading of stock by a corporate director based on publicly available information.

Question 5

Who ultimately controls a corporation?

Accepted Answer

A) Stakeholders 
B) Chairman of the board 
C) Stockholders 
D) Chief executive officer 
E) Board of directors 
A) Stakeholders 
B) Chairman of the board 
C) Stockholders 
D) Chief executive officer 
E) Board of directors

Question 6

The issuance of new equity shares is a cash flow from

Accepted Answer

A) long-term creditors to a firm. 
B) a firm to its shareholders. 
C) a firm's suppliers to the firm. 
D) the financial markets to a firm. 
E) any one of a firm's stakeholders to the firm. 
A) long-term creditors to a firm. 
B) a firm to its shareholders. 
C) a firm's suppliers to the firm. 
D) the financial markets to a firm. 
E) any one of a firm's stakeholders to the firm.

Question 7

Which one of the following statements is correct concerning corporations?

Accepted Answer

A) The shareholders of a corporation select the top managers of that corporation. 
B) A corporation is a distinct legal entity. 
C) The stockholders are usually the managers of a corporation. 
D) The ability of a corporation to raise capital is quite limited. 
E) The income of a corporation is taxed as personal income of the stockholders. 
A) The shareholders of a corporation select the top managers of that corporation. 
B) A corporation is a distinct legal entity. 
C) The stockholders are usually the managers of a corporation. 
D) The ability of a corporation to raise capital is quite limited. 
E) The income of a corporation is taxed as personal income of the stockholders.

Question 8

Dividends are a cash flow from

Accepted Answer

A) a firm to the financial markets. 
B) a shareholder to a firm. 
C) the government to a shareholder. 
D) the financial markets to a firm. 
E) a firm to the government. 
A) a firm to the financial markets. 
B) a shareholder to a firm. 
C) the government to a shareholder. 
D) the financial markets to a firm. 
E) a firm to the government.

Question 9

The treasurer and the controller of a corporation generally report to the

Accepted Answer

A) president. 
B) board of directors. 
C) chief executive officer. 
D) chief financial officer. 
E) chairman of the board. 
A) president. 
B) board of directors. 
C) chief executive officer. 
D) chief financial officer. 
E) chairman of the board.

Question 10

The decisions made by financial managers should all be ones that increase the

Accepted Answer

A) size of the firm. 
B) growth rate of the firm. 
C) market value of the existing owners' equity. 
D) marketability of the managers. 
E) financial distress of the firm. 
A) size of the firm. 
B) growth rate of the firm. 
C) market value of the existing owners' equity. 
D) marketability of the managers. 
E) financial distress of the firm.

Question 11

The Securities Act of 1933 focuses on

Accepted Answer

A) all new and outstanding stock transactions. 
B) the issuance of new securities. 
C) the redemption of outstanding debt. 
D) insider trading. 
E) Federal Deposit Insurance Corporation (FDI
C) insurance. 
A) all new and outstanding stock transactions. 
B) the issuance of new securities. 
C) the redemption of outstanding debt. 
D) insider trading. 
E) Federal Deposit Insurance Corporation (FDI
C) insurance.

Question 12

The articles of incorporation

Accepted Answer

A) can be used to remove company management. 
B) are amended annually by the company stockholders. 
C) set forth the number of shares of stock that can be issued. 
D) set forth the rules by which the corporation regulates its existence. 
E) can set forth the conditions under which the firm can avoid double taxation. 
A) can be used to remove company management. 
B) are amended annually by the company stockholders. 
C) set forth the number of shares of stock that can be issued. 
D) set forth the rules by which the corporation regulates its existence. 
E) can set forth the conditions under which the firm can avoid double taxation.

Question 13

The basic regulatory framework for public trading of securities within the United States is provided by:

Accepted Answer

A) the Securities Act of 1933 and the Securities Exchange Act of 1934. 
B) state governments. 
C) the Federal Reserve Bank. 
D) the Sarbanes-Oxley Act of 2002. 
E) NASDAQ. 
A) the Securities Act of 1933 and the Securities Exchange Act of 1934. 
B) state governments. 
C) the Federal Reserve Bank. 
D) the Sarbanes-Oxley Act of 2002. 
E) NASDAQ.

Question 14

Net working capital is best defined as

Accepted Answer

A) excess cash on hand. 
B) a firm's current assets. 
C) current assets minus current liabilities. 
D) total assets minus total liabilities. 
E) cash and near-cash assets. 
A) excess cash on hand. 
B) a firm's current assets. 
C) current assets minus current liabilities. 
D) total assets minus total liabilities. 
E) cash and near-cash assets.

Question 15

Which one of the following is least apt to encourage managers to act in the best interest of shareholders?

Accepted Answer

A) Shareholder election of the board of directors,who in turn select managers 
B) Threat of a takeover by another firm 
C) Linking manager compensation to share value 
D) Compensating managers with fixed salaries 
E) Granting stock options to key managers 
A) Shareholder election of the board of directors,who in turn select managers 
B) Threat of a takeover by another firm 
C) Linking manager compensation to share value 
D) Compensating managers with fixed salaries 
E) Granting stock options to key managers

Question 16

Which one of the following is a key requirement of the Sarbanes-Oxley Act?

Accepted Answer

A) Officers of the corporation must now own at least five percent of the firm's stock. 
B) Officers of the corporation must review and sign the annual reports. 
C) Annual reports must list the strengths of the internal controls. 
D) Firms must "go dark" every 5 years. 
E) Monthly financial statements must be provided to all shareholders. 
A) Officers of the corporation must now own at least five percent of the firm's stock. 
B) Officers of the corporation must review and sign the annual reports. 
C) Annual reports must list the strengths of the internal controls. 
D) Firms must "go dark" every 5 years. 
E) Monthly financial statements must be provided to all shareholders.

Question 17

Short-term finance

Accepted Answer

A) ensures sufficient equipment is available to produce the daily amount of product desired. 
B) ensures that long-term debt is acquired at the lowest possible cost. 
C) ensures that dividends are paid to all stockholders on an annual basis. 
D) balances the amount of company debt to the amount of available equity. 
E) is concerned with managing net working capital. 
A) ensures sufficient equipment is available to produce the daily amount of product desired. 
B) ensures that long-term debt is acquired at the lowest possible cost. 
C) ensures that dividends are paid to all stockholders on an annual basis. 
D) balances the amount of company debt to the amount of available equity. 
E) is concerned with managing net working capital.

The rules by which corporations govern themselves are called

A limited partnership generally

A stakeholder is best described as any

Insider trading is

Who ultimately controls a corporation?

The issuance of new equity shares is a cash flow from

Which one of the following statements is correct concerning corporations?

Dividends are a cash flow from

The treasurer and the controller of a corporation generally report to the

The decisions made by financial managers should all be ones that increase the

The Securities Act of 1933 focuses on

The articles of incorporation

The basic regulatory framework for public trading of securities within the United States is provided by:

Net working capital is best defined as

Which one of the following is least apt to encourage managers to act in the best interest of shareholders?

Which one of the following is a key requirement of the Sarbanes-Oxley Act?

Short-term finance

Financial Statements AMCQ Cash Flow

Financial Statements Analysis Amcq Financial Models

Discounted Cash Flow Valuation

Interest Rates AMCQ Bomcq Valuation

Stock Valuation

Net Present Value AMCQ Other Investment Rules

Making Capital Investment Decisions

Risk Analysis, Real Options, AMCQ Capital Budgeting

Risk Amcq Return: Lessons From Market History

Return Amcq Risk: the Capital Asset Pricing Model Capm

Risk, cost of Capital, AMCQ Valuation

Efficient Capital Markets Amcq Behavioral Challenges

Capital Structure: Basic Concepts

Capital Structure: Limits to the Use of Debt

Dividemcqs AMCQ Other Payouts

Options Amcq Corporate Finance

Short-Term Finance Amcq Planning

Raising Capital

International Corporate Finance

Mergers Amcq Acquisitions Web Only

Filters

Exam 1: Introduction to Corporate Finance

The rules by which corporations govern themselves are called

A limited partnership generally

A stakeholder is best described as any

Insider trading is

Who ultimately controls a corporation?

The issuance of new equity shares is a cash flow from

Which one of the following statements is correct concerning corporations?

Dividends are a cash flow from

The treasurer and the controller of a corporation generally report to the

The decisions made by financial managers should all be ones that increase the

The Securities Act of 1933 focuses on

The articles of incorporation

The basic regulatory framework for public trading of securities within the United States is provided by:

Net working capital is best defined as

Which one of the following is least apt to encourage managers to act in the best interest of shareholders?

Which one of the following is a key requirement of the Sarbanes-Oxley Act?

Short-term finance

Financial Statements AMCQ Cash Flow

Financial Statements Analysis Amcq Financial Models

Discounted Cash Flow Valuation

Interest Rates AMCQ Bomcq Valuation

Stock Valuation

Net Present Value AMCQ Other Investment Rules

Making Capital Investment Decisions

Risk Analysis, Real Options, AMCQ Capital Budgeting

Risk Amcq Return: Lessons From Market History

Return Amcq Risk: the Capital Asset Pricing Model Capm

Risk, cost of Capital, AMCQ Valuation

Efficient Capital Markets Amcq Behavioral Challenges

Capital Structure: Basic Concepts

Capital Structure: Limits to the Use of Debt

Dividemcqs AMCQ Other Payouts

Options Amcq Corporate Finance

Short-Term Finance Amcq Planning

Raising Capital

International Corporate Finance

Mergers Amcq Acquisitions Web Only

Filters