LSUS MHA 706 Financial Management Midterm Exam |
FREQUENTLY TESTED QUESTIONS WITH CORRECT
ANSWERS | BRAND NEW!
Leave the first rating
Students also studied
Flashcard sets Study guides
RAMSEY CLASSROOM FINAL EXAM... Fin 325 exam 2 AAMS Practice Exam CPWA
Teacher 46 terms Teacher 55 terms Teacher 80 terms Teacher
emusumba286 Preview kaitravis37 Preview Rosaline_Bundi Preview CO
Terms in this set (113)
Which one of the following is a working capital decision? How much cash should the firm keep in reserve?
a.) How should the firm raise additional capital to fund its
expansion?
b.) What debt-equity ratio is best suited to the firm?
c.) What is the cost of debt financing?
d.) Should the firm borrow money for five or ten years?
e.) How much cash should the firm keep in reserve?
Which one of the following is a capital structure Establishing the preferred debt-equity level
decision?
a.) Determining the optimal inventory level
b.) Establishing the preferred debt-equity level
c.) Selecting new equipment to purchase
d.) Setting the terms of sale for credit sales
e.) Determining when suppliers should be paid
Working capital management includes which one of the Determining which customers will be granted credit
following?
a.) Deciding which new projects to accept
b.) Deciding whether to purchase a new machine or fix a
currently owned machine
c.) Determining which customers will be granted credit
d.) Determining how many new shares of stock should be
issued
e.) Establishing the target debt-equity ratio
,The daily financial operations of a firm are primarily working capital
controlled by managing the:
a.) total debt level
b.) working capital
c.) capital structure
d.) capital budget
e.) long-term liabilities
One advantage of the corporate form of organization is ability to raise larger sums of equity capital than other organizational forms.
the:
a.) taxation of the corporate profits.
b.) unlimited liability for its shareholders.
c.) double taxation of profits.
d.) ability to raise larger sums of equity capital than other
organizational forms.
e.) ease of formation compared to other organizational
forms.
The Sarbanes-Oxley Act of 2002 has: essentially made officers of publicly traded firms personally responsible for the
a.) reduced the annual compliance costs of all publicly firm's financial statements.
traded firms in the U.S.
b.) decreased senior management's involvement in the
corporate annual report.
c.) greatly increased the number of U.S. firms that are
going public for the first time.
d.) decreased the number of U.S. firms going public on
foreign exchanges.
e.) essentially made officers of publicly traded firms
personally responsible for the firm's financial statements.
The primary goal of financial management is most market value of the firm
associated with increasing the:
a.) dollar amount of each sale
b.) traffic flow within the firm's stores
c.) fixed costs while lowering the variable costs
d.) firm's liquidity
e.) market value of the firm
Which one of the following best describes the primary Increase the protections against corporate fraud
intent of the Sarbanes-Oxley Act of 2002?
a.) Decrease the number of corporations that can be
publicly traded
b.) Increase the protections against corporate fraud
c.) Limit secondary issues of corporate securities
d.) Increase the dividends paid to shareholders
e.) Increase the number of firms that "go dark"
, Which one of the following situations is most apt to Basing management bonuses on the length of employment
create an agency conflict?
a.) Compensating a manager based on his or her
division's net income
b.) Giving all employees a bonus if a certain level of
efficiency is maintained
c.) Hiring an independent consultant to study the
operating efficiency of the firm
d.) Basing management bonuses on the length of
employment
e.) Laying off employees during a slack period
One example of a primary market transaction would be sale of 1,000 shares of newly issued stock by Alt Company to Miquel.
the:
a.) sale of 100 shares of stock by Maria to her best friend.
b.) purchase by Theo of 5,000 shares of stock from his
father.
c.) sale of 1,000 shares of newly issued stock by Alt
Company to Miquel.
d.) sale by Terry of 50,000 shares of stock to his brother.
e.) sale of 5,000 shares of stock owned by a corporate
CEO to his son.
Uptown Markets is financed with 45 percent debt and 55 capital structure.
percent equity. This mixture of debt and equity is referred
to as the firm's:
a.) capital structure.
b.) capital budget.
c.) asset allocation.
d.) working capital.
e.) risk structure.
Raleigh BBQ has $48,000 in current assets and $39,000 in working capital management
current liabilities. Decisions related to these accounts are
referred to as:
a.) capital structure decisions.
b.) capital budgeting decisions.
c.) working capital management.
d.) operating management.
e.) fixed account structure.
FREQUENTLY TESTED QUESTIONS WITH CORRECT
ANSWERS | BRAND NEW!
Leave the first rating
Students also studied
Flashcard sets Study guides
RAMSEY CLASSROOM FINAL EXAM... Fin 325 exam 2 AAMS Practice Exam CPWA
Teacher 46 terms Teacher 55 terms Teacher 80 terms Teacher
emusumba286 Preview kaitravis37 Preview Rosaline_Bundi Preview CO
Terms in this set (113)
Which one of the following is a working capital decision? How much cash should the firm keep in reserve?
a.) How should the firm raise additional capital to fund its
expansion?
b.) What debt-equity ratio is best suited to the firm?
c.) What is the cost of debt financing?
d.) Should the firm borrow money for five or ten years?
e.) How much cash should the firm keep in reserve?
Which one of the following is a capital structure Establishing the preferred debt-equity level
decision?
a.) Determining the optimal inventory level
b.) Establishing the preferred debt-equity level
c.) Selecting new equipment to purchase
d.) Setting the terms of sale for credit sales
e.) Determining when suppliers should be paid
Working capital management includes which one of the Determining which customers will be granted credit
following?
a.) Deciding which new projects to accept
b.) Deciding whether to purchase a new machine or fix a
currently owned machine
c.) Determining which customers will be granted credit
d.) Determining how many new shares of stock should be
issued
e.) Establishing the target debt-equity ratio
,The daily financial operations of a firm are primarily working capital
controlled by managing the:
a.) total debt level
b.) working capital
c.) capital structure
d.) capital budget
e.) long-term liabilities
One advantage of the corporate form of organization is ability to raise larger sums of equity capital than other organizational forms.
the:
a.) taxation of the corporate profits.
b.) unlimited liability for its shareholders.
c.) double taxation of profits.
d.) ability to raise larger sums of equity capital than other
organizational forms.
e.) ease of formation compared to other organizational
forms.
The Sarbanes-Oxley Act of 2002 has: essentially made officers of publicly traded firms personally responsible for the
a.) reduced the annual compliance costs of all publicly firm's financial statements.
traded firms in the U.S.
b.) decreased senior management's involvement in the
corporate annual report.
c.) greatly increased the number of U.S. firms that are
going public for the first time.
d.) decreased the number of U.S. firms going public on
foreign exchanges.
e.) essentially made officers of publicly traded firms
personally responsible for the firm's financial statements.
The primary goal of financial management is most market value of the firm
associated with increasing the:
a.) dollar amount of each sale
b.) traffic flow within the firm's stores
c.) fixed costs while lowering the variable costs
d.) firm's liquidity
e.) market value of the firm
Which one of the following best describes the primary Increase the protections against corporate fraud
intent of the Sarbanes-Oxley Act of 2002?
a.) Decrease the number of corporations that can be
publicly traded
b.) Increase the protections against corporate fraud
c.) Limit secondary issues of corporate securities
d.) Increase the dividends paid to shareholders
e.) Increase the number of firms that "go dark"
, Which one of the following situations is most apt to Basing management bonuses on the length of employment
create an agency conflict?
a.) Compensating a manager based on his or her
division's net income
b.) Giving all employees a bonus if a certain level of
efficiency is maintained
c.) Hiring an independent consultant to study the
operating efficiency of the firm
d.) Basing management bonuses on the length of
employment
e.) Laying off employees during a slack period
One example of a primary market transaction would be sale of 1,000 shares of newly issued stock by Alt Company to Miquel.
the:
a.) sale of 100 shares of stock by Maria to her best friend.
b.) purchase by Theo of 5,000 shares of stock from his
father.
c.) sale of 1,000 shares of newly issued stock by Alt
Company to Miquel.
d.) sale by Terry of 50,000 shares of stock to his brother.
e.) sale of 5,000 shares of stock owned by a corporate
CEO to his son.
Uptown Markets is financed with 45 percent debt and 55 capital structure.
percent equity. This mixture of debt and equity is referred
to as the firm's:
a.) capital structure.
b.) capital budget.
c.) asset allocation.
d.) working capital.
e.) risk structure.
Raleigh BBQ has $48,000 in current assets and $39,000 in working capital management
current liabilities. Decisions related to these accounts are
referred to as:
a.) capital structure decisions.
b.) capital budgeting decisions.
c.) working capital management.
d.) operating management.
e.) fixed account structure.
