Firms use capital to:
(i) purchase a company
(ii) pay for day-to-day expenses
(iii) establish or expand a business
A) i
B) ii
C) ii & iii
D) all of the above
E) iii
F) none of the above
G) i & iii - Answer-G) i & iii
Which of these items are considered part of a firm's capitalization...
FIN 301 Exam 1 Study Guide Questions
and Answers
Firms use capital to:
(i) purchase a company
(ii) pay for day-to-day expenses
(iii) establish or expand a business
A) i
B) ii
C) ii & iii
D) all of the above
E) iii
F) none of the above
G) i & iii - Answer-G) i & iii
Which of these items are considered part of a firm's capitalization?
(i) Assets
(ii) Debt Liabilities
(iii) Equity
(iv) Operating Liabilities
A) (i) and (iv)
B) None of the listed answers
C) (i) and (iii)
D) All of the listed answers
E) (ii) and (iii) - Answer-E) (ii) and (iii)
What are the two primary types of capital?
(i) Equity;
(ii) Asset;
(iii) Inventory;
(iv) Debt
A) None of the listed answers
B) (i) and (iv)
C) (ii) & (iii)
D) (i) & (ii) - Answer-B) (i) and (iv)
Which of the following are stakeholders and have a contract with an entity:
(i) Shareholders
(ii) Bank lenders
(iii) Bondholders
(iv) The Internal Revenue Service (IRS).
A) (i) & (iii)
B) (i) & (iv)
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