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FIN 300 Exam 1 Verified Questions And Answers | 100% Pass
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FIN 300 Exam 1 Verified Questions AndAnswers | 100% Pass
Profit maximization as a goal of the firm CORRECT ANSWERS does not consider cash flow or risk
Wealth maximization as a goal of the firm CORRECT ANSWERS takes a long-run perspective and focuses on the owners of the firm
An important advantage a general partner usually has is CORRECT ANSWERS usually
a larger share of profit distribution when the firm is successful
A Subchapter S corporation CORRECT ANSWERS has limited liability for its owners
One of the most important disadvantages of the corporate form of business is CORRECT ANSWERS double taxation
A manager has responsibilities to stockholders CORRECT ANSWERS for legal and ethical issues
Problems with seeking profit as a goal of the firm would include each of the following except CORRECT ANSWERS accountants have different ways of measuring profit
Which statement is correct about limited partners CORRECT ANSWERS there is no limit to the number of limited partners that may participate
Which of the following would least affect the value of a firm's stock CORRECT ANSWERS market share
Which of the following areas of finance is concerned with internal decision-making of a business CORRECT ANSWERS financial management
The term "financial management" refers to CORRECT ANSWERS the process of decision-making that produced value
"The primary goal of the business firm is to maximize the wealth of the firms owners." For a corporation, this statement means that managers should focus on maximizing the wealth of its shareholders or its CORRECT ANSWERS market value
Which of the following is associated with increasing the value of a business CORRECT ANSWERS increasing cash inflows, decreasing the time when cash inflows occur, decreasing the riskiness of future cash inflows (all of the above) The expenses involved to monitor managers and their actions is called CORRECT ANSWERS agency costs
Which corporate stakeholder group, if served, will also assure that the corporation will serve most other stakeholders CORRECT ANSWERS shareholders
The corporate form of business organization dominated today because CORRECT ANSWERS the corporation is a legal entity with a long or permanent life and limited liability for shareholders
The functions of the financial manager includes CORRECT ANSWERS decisions associated with new products or service investments, decisions related to the mix of debt and equity financing, estimating the financial expectations of the shareholders (all of the above)
Using value maximization as the basis for making business decisions means that financial managers should consider all but one of the following? CORRECT ANSWERS the expected impact of an investment on earnings per share
Cash flows may differ compared to revenue from sales when CORRECT ANSWERS the customer receives sixty days credit for goods purchased
The expected inflation rate is 4% and the nominal risk-free rate is 6%; the real rate of interest is CORRECT ANSWERS 2%
The economy is suffering from a recession CORRECT ANSWERS a junk bond's interest rate increases relative to that of AAA corporate bonds
The Treasury bill auction CORRECT ANSWERS issues T-bills in minimum denominations of $100
The real rate of interest is 3% CORRECT ANSWERS the inflation rate is 3% and the nominal risk-free rate is 6%
Which of the following risk premiums are most likely to be included in a corporation's commercial paper yield? CORRECT ANSWERS inflation, default, and liquidity risk premiums
Which of the following are traded in money markets? CORRECT ANSWERS banker's acceptances
Stocks that are offered for sale in a secondary market that consists of a network of dealers trading over computers are CORRECT ANSWERS traded on the "over-the-
counter market"
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