Test Bank for Fundamentals of Corporate Finance 7th Edition By Stephen Ross | Complete Guide 2023/2024

Test Bank for Fundamentals of Corporate Finance 7th Canadian Edition Ross. The Corporate Treasurer is in charge of: A. Tax management. B. Cost accounting. C. Data processing. D. Financial accounting. E. Credit management. 30. The Chief Financial Officer of a corporation is the: A. Corporate Treasurer. B. Chairman of the Board. C. Corporate Controller. D. President. E. Vice President of Finance. 31. Deciding whether or not to open a new store is part of the process known as: A. Working capital management. B. Capital structure. C. Cash management. D. Capital budgeting. E. Credit management. 32. Capital structure refers to: A. The management of long-term investments. B. The accounts receivable policy. C. The amount of cash on hand. D. The amount of inventory held. E. The mixture of debt and equity. 33. Working capital management refers to: A. The mixture of debt and equity. B. The types of stock issued. C. The amount of long-term debt. D. The levels of cash and inventory held. E. The types of long-term investments made. 34. A business that is a distinct legal entity is a: A. Corporation. B. General partnership. C. Proprietorship. D. Limited partnership. E. Partnership with only two partners. 35. The primary goal of financial management is to maximize the: A. Book value of the firm. B. Growth rate of a firm. C. Current value of each share of outstanding stock. D. Number of shares of common stock outstanding. E. Compensation of the corporate officers. Test Bank for Fundamentals of Corporate Finance 7th Canadian Edition Ross 36. A proxy fight is: A. A normal part of a corporate merger. B. Used as a means of issuing additional shares of common stock. C. Used as a means of increasing the amount of dividends paid per share. D. A means used to decrease the number of outstanding shares of stock. E. A method used by stockholders to replace corporate management. 37. Suppliers, customers, and employees of a corporation are called: A. Stockholders. B. Shareholders. C. Debtors. D. Stakeholders. E. Partners. 38. A proprietorship is: A. A business managed by a single general partner. B. A limited liability form of business ownership. C. A separate legal body formed by an individual who has limited personal liability. D. A business owned by an individual who has unlimited personal liability. E. A business formed by two or more individuals. 39. Conflicts that arise between the interests of managers and stockholders are referred to as: A. Control problems. B. Agency problems. C. Proxy fights. D. Stockholder conflicts. E. Management conflicts. 40. The primary market includes: A. The sale of stock by a shareholder in the OTC market. B. The sale of new securities by a corporation on an exchange. C. The sale of stock by a shareholder in the open market. D. The sale of stock by a shareholder in an auction market. E. The purchase and sale of shares of stock between two shareholders. 41. Stocks that trade on an exchange are referred to as: A. SEC stocks. B. Listed stocks. C. Primary stocks. D. Privately held stocks. E. Optioned stocks. 42. An individual who buys and sells stocks for his/her own account is a: A. OTC broker. B. Broker. C. Agent. D. Auctioneer. E. Dealer. 43. Tasks related to tax management, cost accounting, financial accounting, and data processing are the responsibility of which corporate officer? A. The Corporate Treasurer B. The Chairman of the Board C. The Corporate Controller D. The Vice President of Production E. The Board of Directors Test Bank for Fundamentals of Corporate Finance 7th Canadian Edition Ross 44. The controller can be defined as the person who is generally responsible for overseeing the of a firm. A. production functions B. cash balances C. financial planning D. accounting functions E. capital expenditures 45. The treasurer can be defined as the person who is generally responsible for overseeing the of a firm. A. data processing functions B. financial planning C. tax matters D. financial accounting E. cost accounting 46. Capital budgeting is defined as the: A. management of a firm's net working capital. B. management of a firm's long-term investments. C. determination of the total amount of money which a firm should borrow. D. mix of debt and equity used by a firm to finance its operations. E. process of determining the optimal types and amounts of inventory to keep on hand. 47. A firm's capital structure is defined: A. by the types of fixed assets the firm owns. B. as the combination of debt and equity used to finance the firm's operations. C. by the nature of the product or service provided. D. as the mix of short-term and long-term assets owned by the firm. E. as the amount of fixed assets needed to support every $1 in sales. 48. Working capital management refers specifically to: A. the oversight of a firm's current accounts. B. the daily use of a firm's fixed assets to generate revenue. C. the utilization of a firm's assets on a daily basis. D. obtaining the necessary funds to finance a firm's daily activities. E. the management of a firm's loan accounts from financial institutions. 49. A sole proprietorship is best defined as a business owned by: A. individuals who enjoy limited liability. B. an individual for less than ten years. C. a single individual who has limited liability for the firm's debts. D. a single individual who has unlimited liability for the firm's debts. E. one or more individuals who have agreed to accept unlimited liability for the firm. 50. A general partnership is best defined as a business owned by: A. one or more individuals who are each totally responsible for the debts of the entity. B. multiple individuals, 80 percent of whom enjoy limited liability. C. two or more individuals, each of whom has limited liability for the firm's debts. D. a single individual who desires limited liability for the firm's debts. E. two or more individuals, only one of whom has unlimited liability for the firm's debts. 51. An entity wherein one or more owners may elect to actively manage the firm while other owners choose limited liability instead of management responsibility is called a: A. general partnership. B. limited liability corporation. C. limited partnership. Test Bank for Fundamentals of Corporate Finance 7th Canadian Edition Ross D. limited liability company. E. corporation. Test Bank for Fundamentals of Corporate Finance 7th Canadian Edition Ross 52. Bylaws are: A. the rules by which corporations govern themselves. B. the documents which set forth the business purpose of a firm. C. the documents which specify how tax liabilities will be allocated among the owners. D. the agreements which specify which partners are general partners and which are limited partners. E. the terms by which partnership profits are distributed. 53. The agency problem is best defined as a conflict of interest between a firm's: A. stockholders and the firm's managers. B. stockholders and the firm's debtors. C. various managers. D. managers and the firm's employees. E. various employees.