Solution Manual for Principles of Corporate Finance 14th
Edition by Richard Brealey, Stewart Myers, Verified
Chapters 1 - 34, The updated Version With Correct
Questions And Answers
Which one of the following terms is defined 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 - correct answers-D. capital budgeting
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 - correct answers-C. limited partner
Which of the following functions should be the responsibility of the controller
rather than the treasurer
A. daily cash deposit
B. income tax returns
C. equipment purchase analysis
D. customer credit approval
E. payment to a vendor - correct answers-B. Income tax returns
Which of the following should a financial manager consider when analyzing a
capital budgeting project?
, I. project start up costs
II. timing of all projected cash flows
III. dependability of future cash flows
IV. dollar amount of each projected cash flow
A. I and IV only
B. I, II, and IV only
C. I, II, and III only
D. II, III, and IV only
E. I, II, III, and IV - correct answers-E. I, II, III, and IV
Which of the following accounts are included in working capital
management?
I. accounts payable
II. accounts receivable
III. fixed assets
IV. inventory
A. I and II only
B. I and III only
C. II and IV only
D. I, II, and IV only
E. II, III, and IV only - correct answers-D. I, II, and IV only
Which of the following individuals have unlimited liability based on their
ownership interest?
I. general partner
II. sole proprietor
III. stockholder
IV. limited partner
A. II only
Edition by Richard Brealey, Stewart Myers, Verified
Chapters 1 - 34, The updated Version With Correct
Questions And Answers
Which one of the following terms is defined 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 - correct answers-D. capital budgeting
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 - correct answers-C. limited partner
Which of the following functions should be the responsibility of the controller
rather than the treasurer
A. daily cash deposit
B. income tax returns
C. equipment purchase analysis
D. customer credit approval
E. payment to a vendor - correct answers-B. Income tax returns
Which of the following should a financial manager consider when analyzing a
capital budgeting project?
, I. project start up costs
II. timing of all projected cash flows
III. dependability of future cash flows
IV. dollar amount of each projected cash flow
A. I and IV only
B. I, II, and IV only
C. I, II, and III only
D. II, III, and IV only
E. I, II, III, and IV - correct answers-E. I, II, III, and IV
Which of the following accounts are included in working capital
management?
I. accounts payable
II. accounts receivable
III. fixed assets
IV. inventory
A. I and II only
B. I and III only
C. II and IV only
D. I, II, and IV only
E. II, III, and IV only - correct answers-D. I, II, and IV only
Which of the following individuals have unlimited liability based on their
ownership interest?
I. general partner
II. sole proprietor
III. stockholder
IV. limited partner
A. II only
