MBA 610 Exam – Questions With Accurate
Solutions
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Terms in this set (149)
Which one of the following is a Deciding whether or not a new production facility
capital budgeting decision? should be built
The corporate controller is generally tax reporting
responsible for which one of these
functions?
A firm's capital structure refers to the proportions of financing from current and long-term
firm's: debt and equity.
Which one of these accounts is Inventory
included in net working capital?
he cheapest business entity to form is sole proprietorship
typically the:
,Which one of these characteristics Personal financial liability limited to the capital
best describes the primary advantage invested
of being a limited partner rather than
a general partner?
One advantage of a partnership is relatively low formation cost.
the:
One disadvantage of the corporate double taxation of profits
form of business ownership is the:
The articles of incorporation: set forth the right granted to shareholders
Given the corporate form of business transfers are unlimited
organization, ownership:
The owners of a limited liability being taxed personally on all business income.
company generally prefer:
Which one of the following business corporation
types is best suited to raising large
amounts of capital?
Financial managers primarily create investing in assets that generate cash in excess of
firm value by: their cost.
Accounting profits and cash flows are different because of GAAP rules regarding the
generally: recognition of income.
Thomas invests $103 in an account Balance Year 4 = $103 + ($103 × 0.06 × 4) = $127.72
that pays 6 percent simple interest.
How much money will Thomas have
at the end of 4 years?
, Beatrice invests $1,310 in an account Balance Year 6 with simple interest = $1,310 + ($1,310
that pays 5 percent simple interest. × 0.05 × 6) = $1,703.00Balance Year 6 with compound
How much more could she have interest = $1,310 × 1.056 = $1,755.53Additional interest
earned over a 6-year period if the = $1,755.53 - $1,703.00 = $52.53
interest had been compounded
annually?
What is the future value of $3,098 FV = $3,098 × 1.0629 = $5,323.56
invested for 9 years at 6.2 percent
compounded annually?
The most recent census for a city FV = 898,938 × 1.03511 = 1,312,422
indicated that there were 898,938
residents. The population of the city is
expected to increase at an annual
rate of 3.5 percent each year for the
next 11 years. What will the population
be at that time?
What is the present value of $12,900 PV = $12,900/1.062 = $11,480.95
to be received 2 years from today if
the discount rate is 6 percent?
A small business has determined that PV = $270,000/1.01417×4 = $104,901.77
the machinery they currently use will
wear out in 17 years. To replace the
new machine when it wears out, the
company wants to establish a savings
account today. If the interest rate on
the account is 1.4 percent
compounded quarterly and the cost
of the machinery will be $270,000,
how much will the company have to
deposit today?
Solutions
Add to calendar
Play your way to mastery with fun games
Match Blocks Charms NEW
Terms in this set (149)
Which one of the following is a Deciding whether or not a new production facility
capital budgeting decision? should be built
The corporate controller is generally tax reporting
responsible for which one of these
functions?
A firm's capital structure refers to the proportions of financing from current and long-term
firm's: debt and equity.
Which one of these accounts is Inventory
included in net working capital?
he cheapest business entity to form is sole proprietorship
typically the:
,Which one of these characteristics Personal financial liability limited to the capital
best describes the primary advantage invested
of being a limited partner rather than
a general partner?
One advantage of a partnership is relatively low formation cost.
the:
One disadvantage of the corporate double taxation of profits
form of business ownership is the:
The articles of incorporation: set forth the right granted to shareholders
Given the corporate form of business transfers are unlimited
organization, ownership:
The owners of a limited liability being taxed personally on all business income.
company generally prefer:
Which one of the following business corporation
types is best suited to raising large
amounts of capital?
Financial managers primarily create investing in assets that generate cash in excess of
firm value by: their cost.
Accounting profits and cash flows are different because of GAAP rules regarding the
generally: recognition of income.
Thomas invests $103 in an account Balance Year 4 = $103 + ($103 × 0.06 × 4) = $127.72
that pays 6 percent simple interest.
How much money will Thomas have
at the end of 4 years?
, Beatrice invests $1,310 in an account Balance Year 6 with simple interest = $1,310 + ($1,310
that pays 5 percent simple interest. × 0.05 × 6) = $1,703.00Balance Year 6 with compound
How much more could she have interest = $1,310 × 1.056 = $1,755.53Additional interest
earned over a 6-year period if the = $1,755.53 - $1,703.00 = $52.53
interest had been compounded
annually?
What is the future value of $3,098 FV = $3,098 × 1.0629 = $5,323.56
invested for 9 years at 6.2 percent
compounded annually?
The most recent census for a city FV = 898,938 × 1.03511 = 1,312,422
indicated that there were 898,938
residents. The population of the city is
expected to increase at an annual
rate of 3.5 percent each year for the
next 11 years. What will the population
be at that time?
What is the present value of $12,900 PV = $12,900/1.062 = $11,480.95
to be received 2 years from today if
the discount rate is 6 percent?
A small business has determined that PV = $270,000/1.01417×4 = $104,901.77
the machinery they currently use will
wear out in 17 years. To replace the
new machine when it wears out, the
company wants to establish a savings
account today. If the interest rate on
the account is 1.4 percent
compounded quarterly and the cost
of the machinery will be $270,000,
how much will the company have to
deposit today?
