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MGMT 310 Exam 1 Review Questions with Correct Answers (Grade A+)

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MGMT 310 Exam 1 Review Questions with Correct Answers (Grade A+)

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MGMT 310 Exam 1 Review Questions with Correct Answers (Grade
A+)

Question 1: Which one of the following terms is described as the management of a firm's long-term
investments?
A. Working Capital Management
B. Financial Allocation
C. Agency Cost Analysis
D. Capital Budgeting
E. Capital Structure

Answer: D. Capital Budgeting

Question 2: A business formed by two or more individuals who each have unlimited liability for all of
the firm's business debts is called a:
A. Corporatin
B. Sole Proprietorship
C. General Partnership
D. Limited Partnership
E. Limited Liability Company

Answer: C. General Parternship

Question 3: A business partner whose potential financial loss in the partnership will not exceed his or
her investment in that partnership is called a:
A. General Partner
B. Sole Proprietor
C. Limited Partner
D. Corporate Shareholder
E. Zero Partner

Answer: C. Limited Partner

Question 4: Which one of the following terms is defined as a conflict of interest between the corporate
shareholders and the corporate managers?
A. Articles of Incorporation
B. Corporate Breakdown
C. Agency Problem
D. Bylaws
E. Legal Liability

Answer: C. Agency Problem




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