Test Bank for Fundamentals of Corporate Finance 10th Edition by Ross.

https://www.stuvia.com/




Test Bank for
Fundamentals
of Corporate
Finance 10th
Edition by
Ross

,https://www.stuvia.com/




Multiple Choice Questions


1. The person generally directly responsible for overseeing the tax management, cost
accounting, financial accounting, and information system functions is the:


A. treasure
r.
B. directo
r.
C. controlle
r.
D. chairman of the
board.
E. chief executive
officer.

AACSB: Analytic
Blooms: Remember
Difficulty level: 1 Easy
Topic: What is Corporate Finance?

2. The person generally directly responsible for overseeing the cash and credit functions,
financial planning, and capital expenditures is the:


A. treasure
r.
B. directo
r.
C. controlle
r.
D. chairman of the
board.
E. chief operations
officer.

AACSB: Analytic
Blooms: Remember
Difficulty level: 1 Easy
Topic: What is Corporate Finance?

,https://www.stuvia.com/




3. The process of planning and managing a firm's long-term investments is called:


A. working capital
management.
B. financial
depreciation.
C. agency cost
analysis.
D. capital
budgeting.
E. capital
structure.

AACSB: Analytic
Blooms: Remember
Difficulty level: 1 Easy
Topic: What is Corporate Finance?

4. The mixture of debt and equity used by a firm to finance its operations is called:


A. working capital
management.
B. financial
depreciation.
C. cost
analysis.
D. capital
budgeting.
E. capital
structure.

AACSB: Analytic
Blooms: Remember
Difficulty level: 1 Easy
Topic: What is Corporate Finance?

5. The management of a firm's short-term assets and liabilities is called:


A. working capital
management.
B. debt
management.
C. equity
management.
D. capital
budgeting.
E. capital
structure.

AACSB: Analytic
Blooms: Remember
Difficulty level: 1 Easy
Topic: What is Corporate Finance?

,https://www.stuvia.com/




6. A business owned by a single individual is called a:


A. corporatio
n.
B. sole
proprietorship.
C. general
partnership.
D. limited
partnership.
E. limited liability
company.

AACSB: Analytic
Blooms: Remember
Difficulty level: 1 Easy
Topic: The Corporate Firm

7. A business formed by two or more individuals who each have unlimited liability for
business debts is called a:


A. corporatio
n.
B. sole
proprietorship.
C. general
partnership.
D. limited
partnership.
E. limited liability
company.

AACSB: Analytic
Blooms: Remember
Difficulty level: 1 Easy
Topic: The Corporate Firm

8. The division of profits and losses among the members of a partnership is formalized in
the:


A. indemnity
clause.
B. indenture
contract.
C. statement of
purpose.
D. partnership
agreement.
E. group
charter.

AACSB: Analytic