FINANCE 301 study Test 2 |Questions all with
100% Correct Answers-A+
Finance - ANSWER It addresses how money is raised and used by individuals, businesses,
and governments.
Corporation - ANSWER This state-created entity is authorized to conduct business and
offer its owners an investment with an unlimited life.
Treasurer - ANSWER This corporate officer is responsible for managing the firm's cash
and short-term investments, pension fund, and risks.
Limited Liability - ANSWER This benefit is conferred by the corporate form of
organization in which an investor's personal responsibility for the debts of the business
are limited to the amount the investor has invested in the firm.
Business Ethics - ANSWER This code of behavior specifies how the firm and its
employees will treat employees and stakeholders.
Limited Partner - ANSWER This is a participant in a partnership, whose personal assets
may no be seized to satisfy the debts of the partnership.
Double Taxation of Dividends - ANSWER The US Internal Revenue Service taxes the
taxable income of corporations as well as the taxable investment income of the firms'
shareholders
Shareholder Wealth Maximization - ANSWER This term describes the individuals and
groups whose needs and wants should be identified and addressed in order to generate
higher returns for the firm and ensure its viability.
, Value - ANSWER This is the worth of a good or service as established by the discounted
and current value of the item's cash flows.
Capital Budgeting - ANSWER The Chief Financial Officer in a company is responsible for
which of the following departments?
Administration
Marketing
Capital Budgeting
Human Resources
Maximize; Common Stock - ANSWER According to finance theory firms should attempt
to ________ the long-term price of the firm's ______. The benefit to this objective is
that it provides the best financial outcome for the firm's share holders.
$10,300 - ANSWER To expand her portfolio, Piper recently purchased 400 shares of
common stock in the Sanger Machine Company. The current market price of Sanger's
common stock is $25.75 per share. Piper's total wealth from her investment in Sanger
Machine Company is $_______
The analysis likely includes incorrect statements and misleading conclusions. - ANSWER
You work as an analyst at a credit-rating agency, and you are comparing firms in the
construction and engineering sector. One company in the portfolio of companies you
are analyzing is a Chinese firm. THis firm stands out in the ratio analysis, because the
company's financial ratios are substantially lower than the identical financial ratios of
the other firms in the sector. You do not dissect the results of the ratio analysis and
categorize report this firm as an under-performing company.
Which of the following statements about your analysis is report is TRUE?
100% Correct Answers-A+
Finance - ANSWER It addresses how money is raised and used by individuals, businesses,
and governments.
Corporation - ANSWER This state-created entity is authorized to conduct business and
offer its owners an investment with an unlimited life.
Treasurer - ANSWER This corporate officer is responsible for managing the firm's cash
and short-term investments, pension fund, and risks.
Limited Liability - ANSWER This benefit is conferred by the corporate form of
organization in which an investor's personal responsibility for the debts of the business
are limited to the amount the investor has invested in the firm.
Business Ethics - ANSWER This code of behavior specifies how the firm and its
employees will treat employees and stakeholders.
Limited Partner - ANSWER This is a participant in a partnership, whose personal assets
may no be seized to satisfy the debts of the partnership.
Double Taxation of Dividends - ANSWER The US Internal Revenue Service taxes the
taxable income of corporations as well as the taxable investment income of the firms'
shareholders
Shareholder Wealth Maximization - ANSWER This term describes the individuals and
groups whose needs and wants should be identified and addressed in order to generate
higher returns for the firm and ensure its viability.
, Value - ANSWER This is the worth of a good or service as established by the discounted
and current value of the item's cash flows.
Capital Budgeting - ANSWER The Chief Financial Officer in a company is responsible for
which of the following departments?
Administration
Marketing
Capital Budgeting
Human Resources
Maximize; Common Stock - ANSWER According to finance theory firms should attempt
to ________ the long-term price of the firm's ______. The benefit to this objective is
that it provides the best financial outcome for the firm's share holders.
$10,300 - ANSWER To expand her portfolio, Piper recently purchased 400 shares of
common stock in the Sanger Machine Company. The current market price of Sanger's
common stock is $25.75 per share. Piper's total wealth from her investment in Sanger
Machine Company is $_______
The analysis likely includes incorrect statements and misleading conclusions. - ANSWER
You work as an analyst at a credit-rating agency, and you are comparing firms in the
construction and engineering sector. One company in the portfolio of companies you
are analyzing is a Chinese firm. THis firm stands out in the ratio analysis, because the
company's financial ratios are substantially lower than the identical financial ratios of
the other firms in the sector. You do not dissect the results of the ratio analysis and
categorize report this firm as an under-performing company.
Which of the following statements about your analysis is report is TRUE?
