https://www.stuvia.com/user/lectkeshi
Test Bank for Corporate Finance 13th Edition by
Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan All
Chapters Complete
https://www.stuvia.com/user/lectkeshi
,https://www.stuvia.com/user/lectkeshi
Chapter 01 Introduction to Corporate Finance Answer Key
Multiple Choice Questions
1. Which one of the following terms is defined as the management of a
firm's long- term investments?
A. working capital management
B. financial allocation
C. agency cost analysis
D. capital budgeting
E. capital
structure Refer
to section 1.1
AACSB: N/A
Difficulty:
Basic
Learning
Objective: 1-
1
Section: 1.1
Topic: Capital budgeting
2. Which one of the following terms is defined as the mixture of a firm's
debt and equity financing?
A. working capital management
B. cash management
C. cost analysis
D. capital budgeting
E. capital
structure Refer
https://www.stuvia.com/user/lectkeshi
,https://www.stuvia.com/user/lectkeshi
to section 1.1
AACSB: N/A
Difficulty:
Basic
Learning
Objective: 1-
1
Section: 1.1
Topic: Capital structure
https://www.stuvia.com/user/lectkeshi
, https://www.stuvia.com/user/lectkeshi
3. Which one of the following is defined as a firm's short-term assets and
its short- term liabilities?
A. working capital
B. debt
C. investment capital
D. net capital
E. capital
structure Refer
to section 1.1
AACSB: N/A
Difficulty:
Basic
Learning
Objective: 1-
1
Section: 1.1
Topic: Working capital
4. A business owned by a solitary individual who has unlimited liability for its
debt is called a:
A. corporation.
B. sole proprietorship.
C. general partnership.
D. limited partnership.
E. limited liability company.
Refer to section 1.2
AACSB: N/A
https://www.stuvia.com/user/lectkeshi
Test Bank for Corporate Finance 13th Edition by
Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan All
Chapters Complete
https://www.stuvia.com/user/lectkeshi
,https://www.stuvia.com/user/lectkeshi
Chapter 01 Introduction to Corporate Finance Answer Key
Multiple Choice Questions
1. Which one of the following terms is defined as the management of a
firm's long- term investments?
A. working capital management
B. financial allocation
C. agency cost analysis
D. capital budgeting
E. capital
structure Refer
to section 1.1
AACSB: N/A
Difficulty:
Basic
Learning
Objective: 1-
1
Section: 1.1
Topic: Capital budgeting
2. Which one of the following terms is defined as the mixture of a firm's
debt and equity financing?
A. working capital management
B. cash management
C. cost analysis
D. capital budgeting
E. capital
structure Refer
https://www.stuvia.com/user/lectkeshi
,https://www.stuvia.com/user/lectkeshi
to section 1.1
AACSB: N/A
Difficulty:
Basic
Learning
Objective: 1-
1
Section: 1.1
Topic: Capital structure
https://www.stuvia.com/user/lectkeshi
, https://www.stuvia.com/user/lectkeshi
3. Which one of the following is defined as a firm's short-term assets and
its short- term liabilities?
A. working capital
B. debt
C. investment capital
D. net capital
E. capital
structure Refer
to section 1.1
AACSB: N/A
Difficulty:
Basic
Learning
Objective: 1-
1
Section: 1.1
Topic: Working capital
4. A business owned by a solitary individual who has unlimited liability for its
debt is called a:
A. corporation.
B. sole proprietorship.
C. general partnership.
D. limited partnership.
E. limited liability company.
Refer to section 1.2
AACSB: N/A
https://www.stuvia.com/user/lectkeshi
