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MBA6040 MANAGERIAL FINANCE QUIZ 1 WITH SOLUTIONS; graded A+ latest model examinations on managerial finance with 100% correct solutions.$8.49
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What are the four basic areas of finance? - Corporate finance = Business Finance
Investments
Financial institutions
International finance
What are the three types of financial management decisions? - Capital budgeting
Capital structure
Working capital management
what questions are they designed to answer? - What long-term investments or projects
should the business take on?
How should we pay for our assets?
Should we use debt or equity?
How do we manage the day-to-day finances of the firm?
What are the three major forms of business organization? - Sole proprietorship
Partnership
Corporation
What is the goal of financial management? - Maximize the current value per share of
the company's existing stock
Maximize the market value of the existing owners' equity
What are agency problems, and why do they exist within a corporation? - Conflict of
interest between principal and agent
What is the difference between book value and market value? - the balance sheet value
of the assets, liabilities, and equity.
true value; the price at which the assets, liabilities, or equity can actually be bought or
sold.
What is the difference between accounting income and cash flow? -
What is the difference between average and marginal tax rates? - Marginal - % tax paid
on the next dollar earned
Average - total tax bill / taxable income
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