WGU C214 FINANCIAL MANAGEMENT FULLY
SOLVED OBJECTIVE ASSESSMENT PAPER
GRADED A+
◉ When evaluating the timing of a project's projected cash flows, a
financial manager is analyzing:
Answer: when each cash flow is expected to occur.
◉ Capital structure decisions include determining:
Answer: how much debt should be assumed to fund a project.
◉ The decision to issue additional shares of stock is an example of:
Answer: a capital structure decision.
◉ Which one of the following questions is a working capital
management decision?
Answer: How much inventory should be on hand for immediate
sale?
◉ Which one of the following is a working capital management
decision?
,Answer: Should the firm pay cash for a purchase or use the credit
offered by the supplier?
◉ Which one of the following terms is defined as the management of
a firm's long-term investments?
Answer: Capital budgeting
◉ A firm's short-term assets and its short-term liabilities are
referred to as the firm's:
Answer: working capital
◉ A business owned by a solitary individual who has unlimited
liability for the firm's debt is called a:
Answer: sole proprietorship.
◉ A business formed by two or more individuals who each have
unlimited liability for all of the firm's business debts is called a:
Answer: general partnership.
◉ A business partner whose potential financial loss in the
partnership will not exceed his or her investment in that
partnership is called a:
Answer: limited partner.
, ◉ A business created as a distinct legal entity and treated as a legal
"person" is called a(n):
Answer: corporation.
◉ Which one of the following statements concerning a sole
proprietorship is correct?
Answer: The owner of a sole proprietorship is personally
responsible for all of the company's debts.
◉ Which one of the following statements concerning a sole
proprietorship is correct?
Answer: The life of a sole proprietorship is limited.
◉ Which of the following individuals have unlimited liability for a
firm's debts based on their ownership interest?
Answer: Both general partners and sole proprietors
◉ Corporate dividends are:
Answer: taxable income of the recipient even though that income
was previously taxed.
◉ Financial managers should primarily focus on the interests of:
Answer: shareholders.
SOLVED OBJECTIVE ASSESSMENT PAPER
GRADED A+
◉ When evaluating the timing of a project's projected cash flows, a
financial manager is analyzing:
Answer: when each cash flow is expected to occur.
◉ Capital structure decisions include determining:
Answer: how much debt should be assumed to fund a project.
◉ The decision to issue additional shares of stock is an example of:
Answer: a capital structure decision.
◉ Which one of the following questions is a working capital
management decision?
Answer: How much inventory should be on hand for immediate
sale?
◉ Which one of the following is a working capital management
decision?
,Answer: Should the firm pay cash for a purchase or use the credit
offered by the supplier?
◉ Which one of the following terms is defined as the management of
a firm's long-term investments?
Answer: Capital budgeting
◉ A firm's short-term assets and its short-term liabilities are
referred to as the firm's:
Answer: working capital
◉ A business owned by a solitary individual who has unlimited
liability for the firm's debt is called a:
Answer: sole proprietorship.
◉ A business formed by two or more individuals who each have
unlimited liability for all of the firm's business debts is called a:
Answer: general partnership.
◉ A business partner whose potential financial loss in the
partnership will not exceed his or her investment in that
partnership is called a:
Answer: limited partner.
, ◉ A business created as a distinct legal entity and treated as a legal
"person" is called a(n):
Answer: corporation.
◉ Which one of the following statements concerning a sole
proprietorship is correct?
Answer: The owner of a sole proprietorship is personally
responsible for all of the company's debts.
◉ Which one of the following statements concerning a sole
proprietorship is correct?
Answer: The life of a sole proprietorship is limited.
◉ Which of the following individuals have unlimited liability for a
firm's debts based on their ownership interest?
Answer: Both general partners and sole proprietors
◉ Corporate dividends are:
Answer: taxable income of the recipient even though that income
was previously taxed.
◉ Financial managers should primarily focus on the interests of:
Answer: shareholders.
