BFIN 300 Review Questions With Solutions
Which of the following forms of business organization is subject to double taxation?
A. Corporation
B. Partnership
C. Limited Partnership
D. Sole Proprietorship A. Corporation
Control of a firm ultimately rests with. . .
A. The CEO
B. The SEC
C. Th...
Which of the following forms of business organization is subject to double taxation?
A. Corporation
B. Partnership
C. Limited Partnership
D. Sole Proprietorship A. Corporation
Control of a firm ultimately rests with. . .
A. The CEO
B. The SEC
C. The Stockholders
D. The Founder C. The Stockholders
Which of the following should a financial manager take into account when considering an
opportunity?
A. How much cash they expect to receive
B. When will they receive the funds
C. How likely they are to receive the funds
, BFIN 300 Review Questions With Solutions
D. All of the above D. All of the above
What is corporate finance? Relationship between business decisions and maximizing the
value of that business
What is Capital Budgeting? the process of planning and managing a firm's long-term
investments
What is Capital Structure? Financing decisions to use either debt or equity
What is the Goal of a financial management team? To maximize shareholder's value
What is a proxy vote allows stockholders to vote off or block a B.O.D
What is the Sarbanes-Oxley Act? Why was it put in place? Requires all publicly traded
companies to get an independent auditor to accurately portray the companies financials.
Companies like enron committed fraud to pump up their stocks value. November 2004
, BFIN 300 Review Questions With Solutions
ABC Corporation has current assets of $5,200, fixed assets of $26,000, current liabilities of
$4,900, and long-term debt of $15,000. What is the ABC Corporation's total equity? What is the
NWC of ABC Corporation?
A. Total Equity $11,000, NWC $11, 300
B. Total Equity $11,300, NWC $300
C. Total Equity $11,000, NWC $300
D. Total Equity 11,300, NWC $11,000 C. Total Equity $11,000, NWC $300
Total Equity = A-L: 26,000-15000 = 11000
NWC = CA-CL : 5200-4900 = 300
XYZ Corporation's balance sheet of 2019 showed net fixed assets of $1.56million, and the 2020
balance sheet showed net fixed assets of $1.78 million. The company's 2020 income statement
showed a depreciation expense of $140,000. What was the company's net capital spending for
2020?
A. $80,000
B. $360,000
C. $220,000
D. $140,000 B. $360,000
Capital spending= ENFA-BNFA + Depreciation
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