©EVERLY 2025 ALL RIGHTS RESERVED
BFIN 300 Final Exam Questions And
Answers Latest Updated 2025 |100%
Verified.
Corporate Finance (most important question) - Answer✔Relationship between business
decisions and the value of stock in the business
Financial managers impact - Answer✔Capital budgeting, capital structure, working capital
management
Capital Budgeting - Answer✔The identification of investment opportunities that are work more
to the business then the cost they require
Capital Structure - Answer✔Concerns itself with financing decisions, such as debt and equity.
How much needs to be borrowed? What is the cost of the borrowings? How to raise that
money?
Sole Proprietorship - Answer✔A business owned by one person, owner keeps all profits and
endures all liabilities.
Partnership - Answer✔A business owned by two or more people, partners share in profits and
liabilities.
1
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Corporation - Answer✔Considered a legal person, separate and distinct from its shareholders.
Shareholders select the board of directors, and the board selects the management team. Most
important form of business in the US. Ownership can be easily transferred. Corporations suffer
double taxation, pays taxes on its earnings and then shareholders also pay taxes.
Sarbanes-Oxley Act - Answer✔Enacted by congress, requires each publicly traded company to
give an assessment of internal controls and financial reporting, management's report must be
reviewed by an independent auditor.
Agency Relationship - Answer✔The relationship between the management team and the
shareholders.
Agency Problem - Answer✔Conflict of interest between management and shareholders.
Proxy Fight - Answer✔a technique used to gather enough stockholder votes to control a
targeted company
Stakeholder - Answer✔Someone who potentially has a claim on the cashflow of the company
Who is the biggest stakeholder? - Answer✔Government
Primary Market - Answer✔The market in which new securities are originally sold to investors.
Secondary Market - Answer✔Previously issued securities are traded among investors.
Auction Market - Answer✔Matches people who want to buy with people who want to sell.
Dealer Market - Answer✔A market where dealers buy and sell for their own accounts.
2
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Balance Sheet - Answer✔Snapshot of a business in a moment of time
Balance Sheet Formula - Answer✔Assets=Liabilities+Stockholders equity
Income Statement - Answer✔Snapshot of a company's performance
Income Statement Formula - Answer✔Income=Revenue-Expenses
Statement of Cashflows - Answer✔Summary of cash coming in and out of the business
Cashflow Formula - Answer✔Source of Funds Less Use of Funds
Current Asset - Answer✔Life of less than one year
Fixed Asset - Answer✔Life more than one year
Liability - Answer✔Something which is owed, classified as current and long term.
Working Capital - Answer✔Difference between short term assets and short term liabilities.
Liquidity - Answer✔The speed of which an asset can be converted to cash.
Parts of Liquidity - Answer✔Ease of conversion
Loss of value when converted
The more liquid a business is the less likely it is to experience financial distress.
3
BFIN 300 Final Exam Questions And
Answers Latest Updated 2025 |100%
Verified.
Corporate Finance (most important question) - Answer✔Relationship between business
decisions and the value of stock in the business
Financial managers impact - Answer✔Capital budgeting, capital structure, working capital
management
Capital Budgeting - Answer✔The identification of investment opportunities that are work more
to the business then the cost they require
Capital Structure - Answer✔Concerns itself with financing decisions, such as debt and equity.
How much needs to be borrowed? What is the cost of the borrowings? How to raise that
money?
Sole Proprietorship - Answer✔A business owned by one person, owner keeps all profits and
endures all liabilities.
Partnership - Answer✔A business owned by two or more people, partners share in profits and
liabilities.
1
, ©EVERLY 2025 ALL RIGHTS RESERVED
Corporation - Answer✔Considered a legal person, separate and distinct from its shareholders.
Shareholders select the board of directors, and the board selects the management team. Most
important form of business in the US. Ownership can be easily transferred. Corporations suffer
double taxation, pays taxes on its earnings and then shareholders also pay taxes.
Sarbanes-Oxley Act - Answer✔Enacted by congress, requires each publicly traded company to
give an assessment of internal controls and financial reporting, management's report must be
reviewed by an independent auditor.
Agency Relationship - Answer✔The relationship between the management team and the
shareholders.
Agency Problem - Answer✔Conflict of interest between management and shareholders.
Proxy Fight - Answer✔a technique used to gather enough stockholder votes to control a
targeted company
Stakeholder - Answer✔Someone who potentially has a claim on the cashflow of the company
Who is the biggest stakeholder? - Answer✔Government
Primary Market - Answer✔The market in which new securities are originally sold to investors.
Secondary Market - Answer✔Previously issued securities are traded among investors.
Auction Market - Answer✔Matches people who want to buy with people who want to sell.
Dealer Market - Answer✔A market where dealers buy and sell for their own accounts.
2
, ©EVERLY 2025 ALL RIGHTS RESERVED
Balance Sheet - Answer✔Snapshot of a business in a moment of time
Balance Sheet Formula - Answer✔Assets=Liabilities+Stockholders equity
Income Statement - Answer✔Snapshot of a company's performance
Income Statement Formula - Answer✔Income=Revenue-Expenses
Statement of Cashflows - Answer✔Summary of cash coming in and out of the business
Cashflow Formula - Answer✔Source of Funds Less Use of Funds
Current Asset - Answer✔Life of less than one year
Fixed Asset - Answer✔Life more than one year
Liability - Answer✔Something which is owed, classified as current and long term.
Working Capital - Answer✔Difference between short term assets and short term liabilities.
Liquidity - Answer✔The speed of which an asset can be converted to cash.
Parts of Liquidity - Answer✔Ease of conversion
Loss of value when converted
The more liquid a business is the less likely it is to experience financial distress.
3
