FIN 300 Test | Questions Solved 100% Correct |
Verified Answers
the root cause of agency problems is conflict of interest... True or False? - ANSWER True
which business organization provides limited liability to all its owners? - ANSWER
Corporation
the five basic principles of Finance are: - ANSWER 1) cash flow is what matters
2) money has a time value
3) risk requires a reward
4) market prices are generally right
5) conflicts of interest cause agency problems
shareholder weath maximization means maximizing the price of the existing common
stock... True or False? - ANSWER True
a corporate treasurer is typically responsible for each of the following duties except:
cost accounting, cash management, capital expenditures, credit management - ANSWER
cost accounting
A limited partnership has limited liability for its owners? True or False? - ANSWER False
in a sole proprietorship, the owner is personally responsible without limitation for the
liabilities incurred... True or False? - ANSWER True
An LLC is taxed like a partnership but provides limited liability for its owners, similar to a
corporation... True or False - ANSWER True
, there is no legal distinction made between the assets of the business and the personal
assets of any of the owners in the limited partnership... True or False? - ANSWER False
the corporation is a legal entity separate from its owners; this it is possible for the
corporation to continue even upon death of one or more shareholders - ANSWER True
what - long term investments a firm should undertake - ANSWER Capital budgeting
the financial manager most directly responsible for producing the company's financial
statements and directing its cost accounting functions is the...? - ANSWER Controller
The true owners of the corporation? - ANSWER Common stockholders
Profits represent money that can be spent, and as such, form the basis for determing
the value of financial decisions - ANSWER False
Corporate managers should accept investment projects that maximize profits in the
short run because of the time value of money... True or False? - ANSWER False
financial planning, corporate strategic planning, and controlling the firm's cash flow -
ANSWER Chief Financial Officer (CFO)
Cash and Credit management - ANSWER Treasurer
organize these in terms of costs to start up( highest to lowest):
1. sole proprietorship
2. general partnership
Verified Answers
the root cause of agency problems is conflict of interest... True or False? - ANSWER True
which business organization provides limited liability to all its owners? - ANSWER
Corporation
the five basic principles of Finance are: - ANSWER 1) cash flow is what matters
2) money has a time value
3) risk requires a reward
4) market prices are generally right
5) conflicts of interest cause agency problems
shareholder weath maximization means maximizing the price of the existing common
stock... True or False? - ANSWER True
a corporate treasurer is typically responsible for each of the following duties except:
cost accounting, cash management, capital expenditures, credit management - ANSWER
cost accounting
A limited partnership has limited liability for its owners? True or False? - ANSWER False
in a sole proprietorship, the owner is personally responsible without limitation for the
liabilities incurred... True or False? - ANSWER True
An LLC is taxed like a partnership but provides limited liability for its owners, similar to a
corporation... True or False - ANSWER True
, there is no legal distinction made between the assets of the business and the personal
assets of any of the owners in the limited partnership... True or False? - ANSWER False
the corporation is a legal entity separate from its owners; this it is possible for the
corporation to continue even upon death of one or more shareholders - ANSWER True
what - long term investments a firm should undertake - ANSWER Capital budgeting
the financial manager most directly responsible for producing the company's financial
statements and directing its cost accounting functions is the...? - ANSWER Controller
The true owners of the corporation? - ANSWER Common stockholders
Profits represent money that can be spent, and as such, form the basis for determing
the value of financial decisions - ANSWER False
Corporate managers should accept investment projects that maximize profits in the
short run because of the time value of money... True or False? - ANSWER False
financial planning, corporate strategic planning, and controlling the firm's cash flow -
ANSWER Chief Financial Officer (CFO)
Cash and Credit management - ANSWER Treasurer
organize these in terms of costs to start up( highest to lowest):
1. sole proprietorship
2. general partnership
