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FNCE 3050 EXAM 1 WITH QUESTIONS AND ANSWERS
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FNCE 3050 EXAM 1 WITH QUESTIONS AND ANSWERS...
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FNCE 3050 EXAM 1 WITH QUESTIONS ANDANSWERS
A potential future negative impact on value and/or cash flows is often discussed in
terms of the probability of loss and the expected magnitude of the loss. This is
called _________.
a. options
b. standard deviation
c. coefficient of variation
d. risk - ANSWER d
All of the following are functions of the board of directors except ________.
a.Hire the CEO
b. Evaluate the CEO
c. Design compensation contracts for the CEO
d. Provide reports to the auditors - ANSWER d
This type of business organization is relatively easy to start, and it is subject to
much lighter regulatory and paperwork burden than other business forms.
a. Sole proprietorship
b. Partnership
c. Corporation
d. Hybrid organization - ANSWER a
Not all cash a company generates will be returned to the investors. Which of the
following will NOT reduce the amount of capital returned to the investors?
, a. retained earnings
b. taxes
c. dividends
b. None of these will reduce the amount of capital returned to the investors. -
ANSWER?
Which of the following statements is correct?
a. Accountants are focused on what happened in the past.
b. Financial managers are focused on what happened in the past.
c. Both accountants and financial managers use total quality management systems
to standardize data.
d. Financial managers double-check the accountant's statements. - ANSWER a
From the perspective of control, the best form of business organization is the
__________.
a. Sole proprietorship
b. Corporation
c. Partnership
d. S Corporation - ANSWER a
The practice generally known as double taxation is due to
a. shareholders' dividends being taxed at both the federal and state levels.
b. corporate income is taxed at both the federal and state levels.
c. interest on shareholders' dividends being taxed as income.
d. corporate incomes being taxed at the corporate level, then again at the
shareholder level when corporate profits are paid out as dividends. - ANSWER d
For corporations, maximizing the value of owner's equity can also be stated as
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