Corporate Finance Questions and Correct Answers & Latest Updated
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Course
Corporate Finance
Institution
Corporate Finance
A business owned by a single individual is called a
-corporation
-sole proprietorship
-general partnership
-limited partnership
-limited liability company
o :## sole proprietorship
The primary goal of financial management is to:
-maximize current dividends per share of the existing stoc...
Corporate Finance Questions and Correct
Answers & Latest Updated
A business owned by a single individual is called a
-corporation
-sole proprietorship
-general partnership
-limited partnership
-limited liability company
o :## sole proprietorship
The primary goal of financial management is to:
-maximize current dividends per share of the existing stock
-maximize the current value per share of the existing stock
-avoid financial distress
-minimize operational costs and maximize firm efficiency
-maintain steady growth in both sales and net earnings
o :## maximize the current value per share of the existing stock
Agency costs refer to
Master01: DO NOT COPY AND PASTE!! August 25, 2024 Latest Update
,2|Page: 2024/2025 Grade A+
-the total dividends paid to stockholders over the lifetime of a firm
-the costs that result from default and bankruptcy of a firm
-corporate income subject to double taxation
-the costs of any conflicts of interest between stockholders and management
-the total interest paid to creditors over the lifetime of the firm
o :## the costs of any conflicts of interest between stockholders and management
The CEO normally reports to:
-Shareholders
-Stakeholders
-Board of Directors
-President of the Corporation
-Chief Executive Officer
o :## Board of Directors
Which of these is a benefit of sole proprietorships and partnerships?
-single taxation
-more complex to form
-limited liability
-limited access to capital
Master01: DO NOT COPY AND PASTE!! August 25, 2024 Latest Update
, 3|Page: 2024/2025 Grade A+
-easy transfer of ownership
o :## single taxation
The Balance Sheet is generally written in order of (from top to bottom):
-Value
-Liquidity
-Date of Acquisition
-Rate of Return
o :## Liquidity
Which one of the following assets is generally the most liquid?
-inventory
-buildings
-equipment
-patents
o :## inventory
Book Values recorded on the balance sheet is based on?
-Current Market Value for most Fixed Assets
-Historical Cost
-Tends to be higher than market value
Master01: DO NOT COPY AND PASTE!! August 25, 2024 Latest Update
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