Finance Exam 1 Week % A+

1. Shareholders welcome higher short-term profits even when they damage long-term profits. True False 2. Which of these duties are responsibilities of the corporate treasurer? Financial statements and taxes Cash management and tax reporting Cash management and banking relationships Raising capital and financial statements 3. Financial assets have value because they are claims on the firm's real assets and the cash that those assets will produce. True False 4. A board of directors is elected as a representative of the corporation's: top management. stakeholders. shareholders. customers. 5. A corporation is considered to be closely held when: only a few shareholders exist. the market value of the shares is stable. it operates in a small geographic area. management also serves as the board of directors. 6. A firm's reputation: has no value. is an important firm asset. is irrelevant to shareholders. can be easily restored once damaged. 7. Which form of organization provides limited liability for the firm but yet allows the professionals working within that firm to be sued personally? Limited liability partnership