CHAPTER 1 THE GOALS AND ACTIVITIES OF FINANCIAL
MANAGEMENT QUESTIONS AND ANSWERS 2024 - 2025
Economics,provides,a,structure,for,decision,making,in,which,of,the,following,areas:,,,ANS,-
,risk,analysis,,pricing,theory,,and,comparative,return,analysis
Accounting,provides,financial,data,through,the,,,ANS,-
,income,statement,,balance,sheet,,and,statement,of,cash,flows
The,term,financial,management,can,be,used,interchangeably,with,corporate,finance.,,,ANS,-,True
A,financial,manager's,functions,must,be,carried,out,while,also,balancing:,,,ANS,-
,the,profitability,and,risk,components,of,the,firm
There,are,four,primary,forms,of,organizations.,,,ANS,-,False
Finance,pioneers,were,concerned,with,how,investors,after,understanding,the,nature,of,various,risks,wou
ld,set,the,price,of:,,,ANS,-,bonds
options
stocks
Financial,managers,must,know,how,to,interpret,a,company's,financial,statements,in,order,to,,,ANS,-
,effectively,allocate,the,firm's,financial,resources
generate,the,best,return,possible,for,the,company,in,the,long-run
The,finance,field,is,often,divided,into,two,general,subcategories,,____________,and,________________
____,,,ANS,-,investments
corporate,finance
, The,more,frequent,daily,activities,of,financial,management,include:,,,ANS,-,credit,management
inventory,control
receipt,and,disbursement,of,funds
Which,of,the,following,is,true,of,a,sole,proprietorship?,,,ANS,-
,Profits,or,losses,are,taxed,at,the,owner's,personal,tax,rate
The,primary,organizational,forms,include:,,,ANS,-,corporation,,partnership,,sole,proprietorship
A,key,difference,between,a,partnership,and,a,sole,proprietorship,is:,,,ANS,-,the,number,of,owners
In,a,limited,liability,partnership,,one,or,more,of,the,partners,is,designated,as,a,,,ANS,-
,general,partner,with,unlimited,liability
A,legal,entity,that,may,sue,or,be,sued,,engage,in,contracts,,and,acquire,property,is,known,as,a,,,ANS,-
,corporation
An,advantage,of,a,sole,proprietorship,,,ANS,-,Low,organizational,and,operating,costs
A,corporation,has,a,continual,life,which,means,that,it,is,not,dependent,upon,any,one,shareholder,for,mai
ntaining,its,,,ANS,-,legal,existence
Management,of,shareholders',interests,is,ultimately,the,responsibility,of,,,ANS,-
,the,corporation's,board,of,directors
A,special,form,of,partnership,that,circumvents,shared,unlimited,liability,is:,,,ANS,-
,a,limited,liability,partnership
MANAGEMENT QUESTIONS AND ANSWERS 2024 - 2025
Economics,provides,a,structure,for,decision,making,in,which,of,the,following,areas:,,,ANS,-
,risk,analysis,,pricing,theory,,and,comparative,return,analysis
Accounting,provides,financial,data,through,the,,,ANS,-
,income,statement,,balance,sheet,,and,statement,of,cash,flows
The,term,financial,management,can,be,used,interchangeably,with,corporate,finance.,,,ANS,-,True
A,financial,manager's,functions,must,be,carried,out,while,also,balancing:,,,ANS,-
,the,profitability,and,risk,components,of,the,firm
There,are,four,primary,forms,of,organizations.,,,ANS,-,False
Finance,pioneers,were,concerned,with,how,investors,after,understanding,the,nature,of,various,risks,wou
ld,set,the,price,of:,,,ANS,-,bonds
options
stocks
Financial,managers,must,know,how,to,interpret,a,company's,financial,statements,in,order,to,,,ANS,-
,effectively,allocate,the,firm's,financial,resources
generate,the,best,return,possible,for,the,company,in,the,long-run
The,finance,field,is,often,divided,into,two,general,subcategories,,____________,and,________________
____,,,ANS,-,investments
corporate,finance
, The,more,frequent,daily,activities,of,financial,management,include:,,,ANS,-,credit,management
inventory,control
receipt,and,disbursement,of,funds
Which,of,the,following,is,true,of,a,sole,proprietorship?,,,ANS,-
,Profits,or,losses,are,taxed,at,the,owner's,personal,tax,rate
The,primary,organizational,forms,include:,,,ANS,-,corporation,,partnership,,sole,proprietorship
A,key,difference,between,a,partnership,and,a,sole,proprietorship,is:,,,ANS,-,the,number,of,owners
In,a,limited,liability,partnership,,one,or,more,of,the,partners,is,designated,as,a,,,ANS,-
,general,partner,with,unlimited,liability
A,legal,entity,that,may,sue,or,be,sued,,engage,in,contracts,,and,acquire,property,is,known,as,a,,,ANS,-
,corporation
An,advantage,of,a,sole,proprietorship,,,ANS,-,Low,organizational,and,operating,costs
A,corporation,has,a,continual,life,which,means,that,it,is,not,dependent,upon,any,one,shareholder,for,mai
ntaining,its,,,ANS,-,legal,existence
Management,of,shareholders',interests,is,ultimately,the,responsibility,of,,,ANS,-
,the,corporation's,board,of,directors
A,special,form,of,partnership,that,circumvents,shared,unlimited,liability,is:,,,ANS,-
,a,limited,liability,partnership
