100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Essentials of Corporate Finance 9th Edition Ross - Test Bank $26.47
Add to cart

Exam (elaborations)

Essentials of Corporate Finance 9th Edition Ross - Test Bank

 9 views  0 purchase
  • Course
  • Institution

Essentials of Corporate Finance 9th Edition Ross - Test Bank

Preview 4 out of 890  pages

  • November 22, 2023
  • 890
  • 2022/2023
  • Exam (elaborations)
  • Questions & answers
avatar-seller
, Chapter 01 Test Bank - Static
Student: ___________________________________________________________________________




1. Jenna has been promoted and is now in charge of all external financing. In other words, she is in charge
of:

A. capital structure management.
B. asset allocation.
C. risk management.
D. capital budgeting.
E. working capital management.



2. Uptown Markets is financed with 45 percent debt and 55 percent equity. This mixture of debt and equity
is referred to as the firm's:

A. capital structure.
B. capital budget.
C. asset allocation.
D. working capital.
E. risk structure.



3. Theo’s BBQ has $48,000 in current assets and $39,000 in current liabilities. Decisions related to these
accounts are referred to as:

A. capital structure decisions.
B. capital budgeting decisions.
C. working capital management.
D. operating management.
E. fixed account structure.



4. 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?

A. Sole proprietorship
B. Limited partnership
C. Corporation
D. Joint stock company
E. General partnership



5. Will and Bill both enjoy sunshine, water, and surfboards. Thus, the two friends decided to create a
business together renting surfboards, paddle boats, and inflatable devices in California. Will and Bill will
equally share in the decision making and in the business profits or losses. Which type of business did they
create if they both have full personal liability for the firm's debts?

A. Sole proprietorship

,B. Limited partnership
C. Corporation
D. Joint stock company
E. General partnership



6. Matt and Alicia created a firm that is a separate legal entity and will share ownership of that firm on a
75/25 basis. Which type of entity did they create if they have no personal liability for the firm's debts?

A. Limited partnership
B. Corporation
C. Sole proprietorship
D. General partnership
E. Public company



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

A. Organizational
B. Structural
C. Formative
D. Agency
E. Territorial

8. An employee has a claim on the cash flows of Martin’s Machines. This claim is defined as a claim by one
of the firm's:

A. residual owners.
B. shareholders.
C. financiers.
D. provisional partners.
E. stakeholders.



9. The shareholders of Weil’s Markets would benefit if the firm were to be acquired by Better Foods.
However, Weil’s board of directors rejects the acquisition offer. This is an example of:

A. a corporate takeover.
B. a capital structure issue.
C. a working capital decision.
D. an agency conflict.
E. a compensation issue.



10. When conducting a financial analysis of a firm, financial analysts:

A. cannot use accounting information as it is historical.
B. rely solely on accounting information.
C. frequently use accounting information.
D. ignore accounting information but do use marketing information.
E. assume the future will be a repeat of the past as reflected in the firm’s accounting reports.

, 11. Jamie is employed as a currency trader in the Japanese yen market. Her job falls into which one of the
following areas of finance?

A. International finance
B. Financial institutions
C. Corporate finance
D. Capital management
E. Personal finance



12. 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?

A. International finance
B. Private placements
C. Corporate finance
D. Capital management
E. Investments



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

A. Mortgage broker
B. Treasury bill analyst
C. Chief financial officer
D. Insurance risk manager
E. Local bank manager



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

A. Cost accounting
B. Data processing
C. Corporate taxes
D. Financial accounting
E. Capital expenditures

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

A. Data processing
B. Cost accounting
C. Tax management
D. Cash management
E. Financial accounting



16. Which one of the following correctly defines a common chain of command within a corporation?

A. The controller reports directly to the corporate treasurer.
B. The treasurer reports directly to the board of directors.
C. The chief financial officer reports directly to the board of directors.
D. The credit manager reports directly to the controller.

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller evileye251. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $26.47. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

53022 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
$26.47
  • (0)
Add to cart
Added