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Fundamentals Of Corporate Finance 10th edition by Stephen Ross - Test Bank
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Fundamentals Of Corporate Finance 10th edition by Stephen Ross - Test Bank

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  • November 29, 2023
  • 4220
  • 2022/2023
  • Exam (elaborations)
  • Questions & answers

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, Chapter 01

Introduction to Corporate Finance


Multiple Choice Questions


1. Which one of the following terms is defined as the management of a
firm's long-term investments?


A. working capital
management
B. financial
allocation
C. agency cost
analysis
D. capital
budgeting
E. capital
structure

2. Which one of the following terms is defined as the mixture of a firm's
debt and equity financing?


A. working capital
management
B. cash
management
C. cost
analysis
D. capital
budgeting
E. capital
structure

,3. Which one of the following is defined as a firm's short-term assets and
its short-term liabilities?


A. working
capital
B. deb
t
C. investment
capital
D. net
capital
E. capital
structure

4. A business owned by a solitary individual who has unlimited liability for
its debt is called a:


A. corporatio
n.
B. sole
proprietorship.
C. general
partnership.
D. limited
partnership.
E. limited liability
company.

, 5. A business formed by two or more individuals who each have unlimited
liability for all of the firm's business debts is called a:


A. corporatio
n.
B. sole
proprietorship.
C. general
partnership.
D. limited
partnership.
E. limited liability
company.

6. A business partner whose potential financial loss in the partnership will
not exceed his or her investment in that partnership is called a:


A. generally
partner.
B. sole
proprietor.
C. limited
partner.
D. corporate
shareholder.
E. zero
partner.

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