1. The goal of the corporation is to:
a. Maximize profits
b. Maximize market share
c. Maximize stock price
d. Minimize risk - -c. Maximize stock price
2. Risk premium is best described as
a. Return on risky securities
b. Compensation for risk-taking
c. Return on stocks
d. Expected return o...
C214 Financial Management Overview Concept Quiz Answers , 100% Accurate, VERIFIED. 1. The goal of the corporation is to: a. Maximize profits b. Maximize market share c. Maximize stock price d. Minimize risk - ✔✔-c. Maximize stock price 2. Risk premium is best described as a. Return on risky securities b. Compensation for risk -taking c. Return on stocks d. Expected return on securities - ✔✔-b. Compensation for risk -taking 3. What is the relationship between risk and required return? a. The two are independent b. Higher required return causes lower risk c. Higher risk causes higher required return d. None of the above - ✔✔-c. Higher risk causes higher required return 4. The value of money depends upon a. The timing of the receipt b. The certainty of receipt c. The size of the receipt d. All of the above - ✔✔-d. All of the above 5. What is the purpose of the SEC 10 -K filing requirement? a. Promote transparency and efficiency b. Prevent insider trading c. Regulate sales practices d. Prevent monopolies - ✔✔-a. Promote transparency and efficiency 6. Which line item is not part of net working capital? a. Inventory b. Bonds c. Accounts Payable d. Accrued expenses - ✔✔-b. Bonds 7. Which action causes a cash outflow? a. Increase in accounts payable b. Decrease in accounts receivable c. Increase in inventory d. None of the above - ✔✔-c. Increase in inventory 8. Which of the following is correct? a. Gross PPE equals Net PPE plus de preciation expense b. Gross PPE equals Net PPE plus accumulated depreciation c. Net PPE equals Gross PPE plus depreciation expense d. None of the above - ✔✔-c. Net PPE equals Gross PPE plus depreciation expense 9. Net Margin is defined as: a. Net Income d ivided by sales b. EBIT divided by sales c. Dividends divided by net income d. Retained earnings divided by sales. - ✔✔-a. Net Income divided by sales 10. Which item is added to the balance sheet? a. Depreciation expense b. Dividends paid c. Addition to r etained earnings d. Both a and c - ✔✔-d. Both a and c 11. What item is added to net income to calculate net cash flow? a. Taxes b. Depreciation expense c. Dividends paid d. None of the above - ✔✔-b. Depreciation expense 12. Which represents cash earned by producing and selling the product a. Cash flow operations b. Cash flow financing c. Cash flow investing d. None of the above - ✔✔-a. Cash flow operations 13. Which ratio reflects a firm's reliance on debt financing? a. Quick ratio b. Net Margin c. Financial leverage d. Asset turnover - ✔✔-c. Financial leverage
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Preach. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $15.49. You're not tied to anything after your purchase.
