BCOR 2204 Finance Quiz 1 - CU Boulder 2026-
Quizzes with Correct Answers
Finance
measurement and study of an organization's cash flows
Present Value
mathematical method of creating equivalence across time and risk for cash flows
Stakeholders
groups such as employees, customers, suppliers, creditors, owners, and others who have a direct
economic link to the firm
Business ethics
standards of conduct or moral judgment that apply to persons engaged in commerce
Goal of the Firm
Maximizing shareholder wealth
Corporate Governance
the rules, processes, and laws by which companies are operated, controlled, and regulated
principal-agent relationship
An arrangement in which an agent acts on the behalf of a principal
Agency Problems
occurs when managers place personal goals ahead of the shareholders
, Agency Costs
arise from agency problems that are born by shareholders and represent a loss
Incentive Plans
management compensation plans that tie management compensation to share price; one example
involves the granting of stock options
Performance Plans
tie management compensation to measures such as EPS or growth in EPS. Performance shares
and/or cash bonuses are used as compensation under these plans
Sole Proprietorship
a business owned and managed by a single individual
General Partnership
partnership in which partners share equally in both responsibility and liability
limited partnership
partnership in which only one partner is required to be a general partner and offers limited
liability
Limited Liability Company (LLC)
a form of business ownership that offers both limited liability to its owners and flexible tax
treatment
Corporation
Quizzes with Correct Answers
Finance
measurement and study of an organization's cash flows
Present Value
mathematical method of creating equivalence across time and risk for cash flows
Stakeholders
groups such as employees, customers, suppliers, creditors, owners, and others who have a direct
economic link to the firm
Business ethics
standards of conduct or moral judgment that apply to persons engaged in commerce
Goal of the Firm
Maximizing shareholder wealth
Corporate Governance
the rules, processes, and laws by which companies are operated, controlled, and regulated
principal-agent relationship
An arrangement in which an agent acts on the behalf of a principal
Agency Problems
occurs when managers place personal goals ahead of the shareholders
, Agency Costs
arise from agency problems that are born by shareholders and represent a loss
Incentive Plans
management compensation plans that tie management compensation to share price; one example
involves the granting of stock options
Performance Plans
tie management compensation to measures such as EPS or growth in EPS. Performance shares
and/or cash bonuses are used as compensation under these plans
Sole Proprietorship
a business owned and managed by a single individual
General Partnership
partnership in which partners share equally in both responsibility and liability
limited partnership
partnership in which only one partner is required to be a general partner and offers limited
liability
Limited Liability Company (LLC)
a form of business ownership that offers both limited liability to its owners and flexible tax
treatment
Corporation
