FIN 419 FINAL EXAM 2. / FIN419 FINAL EXAM 2.: GRADED A | 100% CORRECT
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Course
FIN 419 (FIN419)
Institution
UNIVERSITY OF PHOENIX
FIN 419 FINAL EXAM 2. / FIN419 FINAL EXAM 2.: GRADED A | 100% CORRECTFIN 419 FINAL EXAM 2
1. A financial analyst is responsible for maintaining and controlling the firm's daily cash balances. Frequently manages the firm's short-term investments and coordinates short-term borrowing and banking rela...
FIN 419 FINAL EXAM 2
1. A financial analyst is responsible for maintaining and controlling the firm's
daily cash balances. Frequently manages the firm's short-term investments
and coordinates short-term borrowing and banking relationships. False
2. In partnerships, owners have unlimited liability and may have to cover debts
of other less financially sound partners. True
3. In partnerships, a partner can readily transfer his/her wealth to other
partners. False
4. The board of directors is responsible for managing day-to-day operations
and carrying out the policies established by the chief executive officer. False
5. The president or chief executive officer is elected by the firm's stockholders
and has ultimate authority to guide corporate affairs and make general
policy. False
6. In limited liability partnerships, the liability protection does not protect
partners from their own individual acts of malpractice. True
7. In limited liability partnership, all partners have limited liability with regard
to the business, they are not personally liable for other partners' malpractice,
and the limited liability partnership is taxed as partnership. True
8. Managerial finance
a) involves tasks such as budgeting, financial forecasting, cash
management, and funds procurement.
b) involves the design and delivery of advice and financial products.
c) recognizes funds on an accrual basis.
d) devotes the majority of its attention to the collection and presentation of
financial data.
9. Finance can be defined as
a) the system of debits and credits.
b) the science of the production, distribution, and consumption of wealth.
c) the art and science of managing money.
d) the art of merchandising products and services.
10.The true owner(s) of the corporation is (are) the ________.
a) board of directors
b) chief executive officer
c) stockholders
, d) creditors
11.High cash flow is generally associated with a higher share price whereas
higher risk tends to result in a lower share price. True
12.Managing the firm's assets includes all of the following EXCEPT
a) inventory.
b) fixed assets.
c) accounts receivable.
d) notes payable.
13.Managing the firm's liabilities includes all of the following EXCEPT
a) accruals.
b) notes payable.
c) cash.
d) accounts payable.
14.High earnings per share (EPS) does not necessarily translate into a high
stock price. True
15.The agency problem occurs when the firm selects an ineffective marketing
advertising and PR firm to represent them. False
16.The major purpose of the Sarbanes-Oxley Act of 2002 was to place caps on
the compensation that could be paid to corporate executives. False
17.Corporate owner's receive realizable return through
a) earnings per share and cash dividends.
b) increase in share price and cash dividends.
c) increase in share price and earnings per share.
d) profit and earnings per share.
18.As the risk of a stock investment increases, investors'
a) return will increase.
b) return will decrease.
c) required rate of return will decrease.
d) required rate of return will increase.
19.The Sarbanes-Oxley Act of 2002 was passed in response to
a) insider trading activities.
b) false disclosures in financial reporting.
c) the decline in technology stocks.
d) all of the above.
20.The Sarbanes-Oxley Act of 2002 did all of the following EXCEPT
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