SDSU BA 323 Finance Exam 1 (2025) QUESTIONS AND ALL
CORRECT ANSWERS 100% SOLVED AND GUARANTEED
SUCCESS!!
current business trends. Case studies from leading businesses can be helpful, as they illustrate how business concepts are applied in real-world scenarios. Group discussions and practicing sample case studies can aid in refining analytical skills.________ current business trends. Case studies
from leading businesses can be helpful, as they illustrate how business concepts are applied in real-world scenarios. Group discussions and practicing sample case studies can aid in refining analytical skills._____________
_____
Terms in this set (42)
What is the main goal of To make capital gains for shareholders. Maximize
the corporation? value of the firm.
Shareholders ultimately own the corporation.
Who ultimately owns the
Management (managers) are naturally inclined to
corporation? What is the
act in their own interests but that may not be in the
relationship between
best interests of shareholders. The board of
shareholders, the board
directors - elected by the shareholders - can
of directors, and
oversee managerial behavior through corporate
management?
governance.
, What are the 3 most CEO, COO, CFO
current business trends. Case studies from leading businesses can be helpful, as they illustrate how business concepts are applied in real-world scenarios. Group discussions and practicing sample case studies can aid in refining analytical skills._____________
important management
positions?
Sarbanes-Oxley was passed in 2002 as a result of
What is the Sarbanes-
the Enron and Worldcom scandals. It makes
Oxley legislation? Why
corporate management legally responsible for the
was it passed?
accuracy of their financial statements.
Advantages: Ease of raising money (BIGGEST
What is the major
ADVANTAGE), Unlimited life, Easy transfer of
disadvantages and
ownership, and limited liability (you can only lose
advantages of
what you've invested).
corporations compared
to other forms of
Disadvantages: Double taxation and cost of setup
business organizations?
and report filing.
What is a stock's intrinsic A stock's intrinsic ("true") value is the value the
value? In an efficient investor inherently believes the stock to possess,
market, will a stock's
price equal i.e. the 'correct price'. In an efficient market a stock's price should equal it's
intrinsic value. current business trends. Case studies from leading businesses can be helpful, as they illustrate how
the stock's intrinsic business concepts are applied in real-world scenarios. Group discussions and practicing sample case studies can aid in refining
analytical skills._____________
value?
Why do shareholders Managers are naturally inclined to act in their own
have a conflict of interest best interests (which are not always the same as the
with managers? interest of stockholders).
What is corporate The system of governing a company that aligns the
governance? interests of shareholders and managers together.
, What are various Stock instead of cash. Long vesting periods.
strategies for aligning Stronger oversight by board or outside investors.
the interests of
shareholders and
management?
Change in CEO Movement away from salaries to stock options to
Compensation starting in foster growth, innovation and risk-taking.
the 1980s?
Why is it a good idea for To align interests of shareholder and management.
CEO compensation to Expect CEO compensation to track S&P 500; as
track an overall market opposed to a bond-market which would
index like the S&P 500? discourage risks.
What is the bondholder- Bondholders prefer safe, secure investments while
stockholder conflict? Do stockholders prefer riskier business maneuvers for
bondholders prefer safer possible greater capital gains.
or risky corporate
investments?
current business trends. Case studies from leading businesses can be helpful, as they illustrate how business concepts are applied in real-world scenarios. Group discussions and practicing sample case studies
can aid in refining analytical skills._____________
current business trends. Case studies from leading businesses can be helpful, as they illustrate how business concepts are applied in real-world scenarios. Group discussions and practicing sample case studies
can aid in refining analytical skills._____________
CORRECT ANSWERS 100% SOLVED AND GUARANTEED
SUCCESS!!
current business trends. Case studies from leading businesses can be helpful, as they illustrate how business concepts are applied in real-world scenarios. Group discussions and practicing sample case studies can aid in refining analytical skills.________ current business trends. Case studies
from leading businesses can be helpful, as they illustrate how business concepts are applied in real-world scenarios. Group discussions and practicing sample case studies can aid in refining analytical skills._____________
_____
Terms in this set (42)
What is the main goal of To make capital gains for shareholders. Maximize
the corporation? value of the firm.
Shareholders ultimately own the corporation.
Who ultimately owns the
Management (managers) are naturally inclined to
corporation? What is the
act in their own interests but that may not be in the
relationship between
best interests of shareholders. The board of
shareholders, the board
directors - elected by the shareholders - can
of directors, and
oversee managerial behavior through corporate
management?
governance.
, What are the 3 most CEO, COO, CFO
current business trends. Case studies from leading businesses can be helpful, as they illustrate how business concepts are applied in real-world scenarios. Group discussions and practicing sample case studies can aid in refining analytical skills._____________
important management
positions?
Sarbanes-Oxley was passed in 2002 as a result of
What is the Sarbanes-
the Enron and Worldcom scandals. It makes
Oxley legislation? Why
corporate management legally responsible for the
was it passed?
accuracy of their financial statements.
Advantages: Ease of raising money (BIGGEST
What is the major
ADVANTAGE), Unlimited life, Easy transfer of
disadvantages and
ownership, and limited liability (you can only lose
advantages of
what you've invested).
corporations compared
to other forms of
Disadvantages: Double taxation and cost of setup
business organizations?
and report filing.
What is a stock's intrinsic A stock's intrinsic ("true") value is the value the
value? In an efficient investor inherently believes the stock to possess,
market, will a stock's
price equal i.e. the 'correct price'. In an efficient market a stock's price should equal it's
intrinsic value. current business trends. Case studies from leading businesses can be helpful, as they illustrate how
the stock's intrinsic business concepts are applied in real-world scenarios. Group discussions and practicing sample case studies can aid in refining
analytical skills._____________
value?
Why do shareholders Managers are naturally inclined to act in their own
have a conflict of interest best interests (which are not always the same as the
with managers? interest of stockholders).
What is corporate The system of governing a company that aligns the
governance? interests of shareholders and managers together.
, What are various Stock instead of cash. Long vesting periods.
strategies for aligning Stronger oversight by board or outside investors.
the interests of
shareholders and
management?
Change in CEO Movement away from salaries to stock options to
Compensation starting in foster growth, innovation and risk-taking.
the 1980s?
Why is it a good idea for To align interests of shareholder and management.
CEO compensation to Expect CEO compensation to track S&P 500; as
track an overall market opposed to a bond-market which would
index like the S&P 500? discourage risks.
What is the bondholder- Bondholders prefer safe, secure investments while
stockholder conflict? Do stockholders prefer riskier business maneuvers for
bondholders prefer safer possible greater capital gains.
or risky corporate
investments?
current business trends. Case studies from leading businesses can be helpful, as they illustrate how business concepts are applied in real-world scenarios. Group discussions and practicing sample case studies
can aid in refining analytical skills._____________
current business trends. Case studies from leading businesses can be helpful, as they illustrate how business concepts are applied in real-world scenarios. Group discussions and practicing sample case studies
can aid in refining analytical skills._____________
