FIN 101 Exam questions with correct answers 2026/2027 Edition Graded A+ A business entity which is treated as a legal "person" is called a: A. limited partnership. B. sole proprietorship. C. general partnership. D. corporation. E. pr

FIN 1O1/102/202
BUS/110.
BUSINESS
wiseman 2026/2027 BUSINESS

, FIN 101 Exam questions with
correct answers 2026/2027
Edition Graded A+
A business entity which is treated as a legal "person" is called a:
A. limited partnership.
B. sole proprietorship.
C. general partnership.
D. corporation.
E. private venture. - ✅✅D


Any situation where a potential conflict can arise between the firm's
owners and its managers is referred to as a(n):
A. organizational problem.
B. personnel conflict.
C. agency problem.
D. control issue.
E. compensation issue. - ✅✅C


The capital structure of a firm refers to the firm's:

, A. buildings and equipment.
B. organizational chart.
C. available cash.
D. long-term debt and equity.
E. current assets and liabilities. - ✅✅D


The primary goal of financial management is to maximize the:
A. current net income.
B. net working capital.
C. the number of shares outstanding.
D. market value of the existing stock.
E. capital structure. - ✅✅D


The Sarbanes-Oxley Act:
A. requires all corporations to fully disclose their financial dealings to
the general public.
B. places the responsibility for a firm's financial statements solely on
the chief financial officer.
C. makes the officers of a public corporation personally responsible
for the firm's financial statements.
D. requires that the board of directors be solely responsible for the
firm's financial dealings.