A) Thekinformationksystemskmanagerkreportsktokthektreasurer.
B) Thekcreditkmanagerkreportsktokthektreasurer.
C) Thekcontrollerkreportsktokthekchiefkexecutivekofficer.
D) Thektaxkmanagerkreportsktokthektreasurer.
E) Thekcapitalkexpenditureskmanagerkreportsktokthekcontroller.
, A) Howkmuchkdebtkshouldkthekfirmkborrowkfromkakparticularklender?
B) Shouldkthekfirmkbuildkaknewkproductionkfacility?
C) Shouldkthekfirmkissueknewkequityktokpaykforkitskgrowthkgoals?
D) Howkmuchkinventorykshouldkthekfirmkkeepkonkhand?
E) Howkmuchkcreditkshouldkthekfirmkextendktokakparticularkcustomer?
A) Netkworkingkcapitalkequalskcurrentkassetskpluskcurrentkliabilities.
B) Currentkliabilitieskarekdebtskthatkmustkbekrepaidkink18kmonthskorkless.
C) Currentkassetskarekassetskwithkshortklives,ksuchkaskaccountskreceivable.
D) Long-termkdebtkiskdefinedkaskakresidualkclaimkonkakfirm’skassets.
E) Tangiblekassetskarekfixedkassetsksuchkaskpatents.
A) capitalkexpenditureskmanagement.
B) cashkmanagement.
C) taxkreporting.
D) financialkplanning.
E) creditkmanagement.
6) k isktypicallykthekresponsibilitykofkthekcorporatektreasurer.
A) Financialkplanning
B) Costkaccounting
C) Taxkreporting
D) Informationksystems
E) Financialkaccounting
7) Akfirm’s define(s)kitskcapitalkstructure.
Versionk1 3
, A) mixturekofkvariousktypeskofkproductionkequipment
B) investmentkselectionskforkitskexcesskcashkreserves
C) combinationkofkcashkandkcashkequivalents
D) combinationkofkaccountskappearingkonkthekleftksidekofkitskbalanceksheet
E) proportionskofkfinancingkfromkdebtkandkequity
8) Thekfocuskofkshort-termkfinancekiskon:
A) thektimingkofkcashkflows.
B) acquiringkandksellingkfixedkassets.
C) financingklong-termkprojects.
D) capitalkbudgeting.
E) issuingkadditionalkshareskofkcommonkstock.
9) Netkworkingkcapitalkincludes:
A) copyrights.
B) manufacturingkequipment.
C) commonkstock.
D) long-termkdebt.
E) inventory.
10) k iskdefinedkaskplanningkandkmanagingkakfirm’sklong-termkassets.
A) Workingkcapitalkmanagement
B) Cashkmanagement
C) Costkaccountingkmanagement
D) Capitalkbudgeting
E) Capitalkstructurekmanagement
A) Itkiskmorekdifficultktokformkthankotherkformskofkbusiness.
B) Itskbusinesskprofitskarektaxedktwicekatkthekfederalklevel.
C) Itskbusinesskprofitskarektaxedkseparatelykfromkthekpersonalkincomekofkthekowner.
D) Thekownerkmaykbekforcedktoksellkhiskorkherkpersonalkassetsktokpaykthekcompany's
debts.
E) Itkhaskankunlimitedklifekspan.
, A) Thekabilityktokraisekcapitalkisklimitedkbykthekowner’skpersonalkwealth.
B) Itkpaysktaxeskatkthekcorporatektaxkrate.
C) Ownershipkofkthekfirmkiskeasyktoktransferktokanotherkindividual.
D) Itkmustkpaykincomektaxeskseparatelykfromkthektaxeskpaidkbykthekowner.
E) Theklegalkcostsktokformkitkarekusuallyksubstantial.
A) beingkentitledktokaklargerkportionkofkthekpartnership’skincome.
B) havingkresponsibilitykforkday-to-daykmanagementk ofkthekbusiness.
C) earningkprofitskthatkarekfreekfromkincomektaxation.
D) thekabilityktokhavekoverallkcontrolkofkthekpartnership.
E) one’skpersonalkfinancialkliabilitykisklimitedktokthekamountkofkcapitalkinvested.
17) Akgeneralkpartner:
A) hasklessklegalkliabilitykthankaklimitedkpartner.
B) cankendkthekpartnershipkbykwithdrawing.
C) faceskdoublektaxationkofkprofitskwhereaskaklimitedkpartnerkdoesknot.
D) cannotklosekmorekthankthekamountkofkhiskorkherkequitykinvestment.
E) iskthektermkappliedkonlyktokcorporationskthatkinvestkinkpartnerships.
18) Akpartnership:
A) isktaxedkinktheksamekfashionkthatkakcorporationkisktaxed.
B) terminateskuponkthekdeathkofkanyklimitedkpartner.
C) createskforkallkgeneralkpartnerskankunlimitedkliabilitykforkthekpartnership'skdebts.
D) hasktheksamekabilitykaskakcorporationktokraisekcapital.
E) allowskforkeasyktransferkofkownershipkfromkonekgeneralkpartnerktokanother.
19) Onekadvantagekofkakpartnershipkiskthe:
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, A) personalkliabilitykforkallkofkthekfirm’skdebts.
B) limitedklifekofkthekentity.
C) limitedkliabilitykprotectionkforkallkofkthekpartners.
D) relativelyklowkcostkofkformation.
E) easekofktransferringkfullkownershipktokothers.
A) limitedkliabilitykprotectionkprovidedkforkallkowners.
B) firm’skabilityktokraisekcash.
C) unlimitedklifekofkthekfirm.
D) difficultieskencounteredkwhenkchangingkownership.
E) doublektaxationkofkbusinesskprofits.
A) Bothkpartnershipskandkcorporationskareksubjectktokdoublektaxation.
B) Solekproprietorshipskandkpartnershipskarektaxedkinkaksimilarkfashion.
C) Partnershipskarekthekmostkcomplicatedktypekofkbusinessktokform.
D) Bothkpartnershipskandkcorporationskhaveklimitedkliabilitykforkallkowners.
E) Allktypeskofkbusinesskformationskhaveklimitedklives.
22) Thekarticleskofkincorporation:
A) cankbekusedktokremovekthekfirm’skmanagement.
B) arekamendedkannuallykbykthekfirm’skstockholders.
C) setkforthkthekrightskgrantedktokshareholders.
D) setkforthkthekruleskbykwhichkthekcorporationkregulateskitskexistence.
E) canksetkforthkthekconditionskunderkwhichkthekfirmkcankavoidkdoublektaxation.
23) Corporatekbylaws:
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, A) establishktheknamekofkthekcorporation.
B) establishkthekrightskgrantedktok itskshareholders.
C) setkforthkthekpurposekofkthekfirm.
D) establishkthekruleskbykwhichkthekcorporationkregulateskitskexistence.
E) setkforthktheknumberkofkmemberskofkthekinitialkboardkofkdirectors.
A) Afterkakpredeterminedknumberkofkyears,kownershipkcanknoklongerkbektransferred.
B) Thekabilityktokraisekcapitalkisklimitedkbykthekpersonalkwealthkofkthekowners.
C) Primarykshareholderskhavekunlimitedkliabilitykforkcorporatekdebts.
D) Thekentitykcankoutlivekallkofkitskinitialkowners.
E) Whenktheklastkoriginalkownerkdieskorkwithdraws,kthekentitykiskterminated.
A) mustkbekgrantedkwithkequalkrightskassignedktokeachkandkeverykshareholder.
B) cankbektransferredkankunlimitedknumberkofktimes.
C) cankonlykbektransferredkwithkthekapprovalkofkthekboardkofkdirectors.
D) iskcontrolledkbykthekcorporatekofficers.
E) mustkbekheldkbyknon-managementkowners.
A) bektaxedklikekakcorporation.
B) havekliabilitykexposureksimilarktokthatkofkaksolekproprietor.
C) bektaxedkpersonallykonkallkbusinesskincome.
D) havekliabilitykexposureksimilarktokthatkofkakgeneralkpartner.
E) bektaxedklikekakcorporation,kandkhavekliabilityklikekakpartnership.
A) limitedktokhiskorkherkpersonalknetkworth.
B) limitedktokthekamountkhekorkshekinvestedkintokthekpartnership.
C) limitedktokhiskorkherktotalkearningskreceivedkfromkthekpartnership.
D) unlimited.
E) limitedktokthektotalkamountkinvestedkbykallkpartners.
34) A
provideskeachkownerkwithklimitedkliability,kandkiskoperatedkandktaxedklikekakpartnership.
A) limitedkliabilitykcompany
B) generalkpartnership
C) limitedkproprietorship
D) limitedkpartnership
E) corporation
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