FIN 412 Exam 1 Review Exam Questions And Correct Detailed Answers.
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Course
FIN.
Institution
FIN.
What does Corporate Finance address?
a. How a firm should manage and fund its short-term assets
b. The long-term investments the firm should choose
c. How to fund a firm's investments
d. All of the Above - correct answer d
What is the primary goal of Fi...
a. How a firm should manage and fund its short-term assets
b. The long-term investments the firm should choose
c. How to fund a firm's investments
d. All of the Above - correct answer d
What is the primary goal of Financial Management?
a. To maximize profits
b. To minimize costs
c. To maximize market share
d. To maximize shareholder wealth - correct answer d
In a corporation, who are the "Agents"?
a. Managers
b. Stakeholders
c. Shareholders
d. Bondholders - correct answer a
Which of the following is a potential solution to agency problems?
a. The threat of a takeover
b. Stakeholders that serve as monitors (such as creditors)
, c. Both A & B
d. None of the Above - correct answer c
Which of the following is NOT one of the three major components of the cash flow statement?
a. Operating
b. Accounting
c. Financing
d. Investing - correct answer b
Bondholders generally receive the first claim to a firm's cash flow
a. True
b. False - correct answer a
Liquid assets frequently have Higher rates of return than fixed assets
a. True
b. False - correct answer b
How would Net Working Capital (NWC) be affected if Accounts Receivable increased?
a. Increase in NWC
b. Decrease in NWC
c. No change in NWC - correct answer a
Which of the following is Not a feature of Flexible Policy?
a. Large cash balances
b. Greater inventory
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