FIN 202 ACTUAL FINALS QUESTIONS AND
ANSWERS SURE A+
QN=1 (20283) Which of the following does maximizing shareholder wealth not usually
account for?
a. Risk.
b. Government regulation.
c. The timing of cash flows.
d. Amount of cash flows. - ✔✔B
✔✔QN=2 (20262) Financial markets in which equity and debt instruments with
maturities greater than one year are traded are called
a. money markets.
b. capital markets.
c. stock markets.
d. none of these. - ✔✔B
✔✔QN=3 (20269) Which of the following organizational forms is subject to the most
SEC regulations?
a. sole proprietorship
b. partnership
c. private corporation
d. public corporation - ✔✔D
✔✔QN=4 (20263) Profitability of a firm can be negatively affected by
a. (i) too much inventory.
b. (ii) too little inventory.
c. either (i) or (ii).
d. neither (i) nor (ii). - ✔✔C
✔✔QN=5 (20278) Which of the following can help align the behavior of managers with
the goals of shareholders?
, a. management compensation
b. managerial labor markets
c. an independent board of directors
d. all of these - ✔✔D
✔✔QN=6 (20279) Executives that repeatedly put their own interests before that of the
firm may find that they have difficulty finding another job after their current one. This is
an example of
a. the managerial labor market disciplining managers.
b. the market for corporate control.
c. the board of directors affecting the prospects of a manager.
d. none of these. - ✔✔A
✔✔QN=7 (20271) Which of the following is responsible for seeing that the best possible
financial analysis is presented?
a. CFO
b. CEO
c. board of directors
d. audit committee - ✔✔A
✔✔QN=8 (20276) Shareholders elect ______________ to represent their interest in the
firm.
a. a chairman
b. CEO
c. a board of directors
d. all of these - ✔✔C
✔✔QN=9 (20253) A trademark is an example of
a. a productive asset.
b. an intangible asset.
c. a nebulous asset.
d. none of these. - ✔✔B
✔✔QN=10 (20250) A stakeholder is
a. anyone geographically close to the firm's headquarters.
b. anyone with a claim on the cash flows of the firm.
c. any governmental agency.
d. all of these. - ✔✔B
✔✔QN=11 (20281) _____________occur(s) when one party in a business transaction
has information that is unavailable to the other parties in the transaction.
a. Profits
b. Information asymmetry
c. Information efficiency
ANSWERS SURE A+
QN=1 (20283) Which of the following does maximizing shareholder wealth not usually
account for?
a. Risk.
b. Government regulation.
c. The timing of cash flows.
d. Amount of cash flows. - ✔✔B
✔✔QN=2 (20262) Financial markets in which equity and debt instruments with
maturities greater than one year are traded are called
a. money markets.
b. capital markets.
c. stock markets.
d. none of these. - ✔✔B
✔✔QN=3 (20269) Which of the following organizational forms is subject to the most
SEC regulations?
a. sole proprietorship
b. partnership
c. private corporation
d. public corporation - ✔✔D
✔✔QN=4 (20263) Profitability of a firm can be negatively affected by
a. (i) too much inventory.
b. (ii) too little inventory.
c. either (i) or (ii).
d. neither (i) nor (ii). - ✔✔C
✔✔QN=5 (20278) Which of the following can help align the behavior of managers with
the goals of shareholders?
, a. management compensation
b. managerial labor markets
c. an independent board of directors
d. all of these - ✔✔D
✔✔QN=6 (20279) Executives that repeatedly put their own interests before that of the
firm may find that they have difficulty finding another job after their current one. This is
an example of
a. the managerial labor market disciplining managers.
b. the market for corporate control.
c. the board of directors affecting the prospects of a manager.
d. none of these. - ✔✔A
✔✔QN=7 (20271) Which of the following is responsible for seeing that the best possible
financial analysis is presented?
a. CFO
b. CEO
c. board of directors
d. audit committee - ✔✔A
✔✔QN=8 (20276) Shareholders elect ______________ to represent their interest in the
firm.
a. a chairman
b. CEO
c. a board of directors
d. all of these - ✔✔C
✔✔QN=9 (20253) A trademark is an example of
a. a productive asset.
b. an intangible asset.
c. a nebulous asset.
d. none of these. - ✔✔B
✔✔QN=10 (20250) A stakeholder is
a. anyone geographically close to the firm's headquarters.
b. anyone with a claim on the cash flows of the firm.
c. any governmental agency.
d. all of these. - ✔✔B
✔✔QN=11 (20281) _____________occur(s) when one party in a business transaction
has information that is unavailable to the other parties in the transaction.
a. Profits
b. Information asymmetry
c. Information efficiency
