Advanced Corporate Finance Quiz 1
The treasurer and the controller of a corporation generally report to the: - ANS
chief financial officer
A firm's capital structure refers to the firm's: - ANS proportions of financing
from current and long-term debt and equity
Short-term finance deals with: - ANS the timing of cash flows
The process of planning and managing a firm's long-term assets is called: -
ANS capital budgeting
Any debt that must be repaid within the next year is recorded on the balance
sheet as: - ANS a current liability
A business owned by a single individual is called a: - ANS sole proprietorship
One disadvantage of the corporate form of business ownership is the: - ANS
double taxation of profits
Which one of the following business types is best suited to raising large
amounts of capital? - ANS Corporation
, Financial managers primarily create firm value by: - ANS investing in assets
that generate cash in excess of their cost
Which one of these is a cash outflow from a corporation? - ANS Tax payment
Which one of these statements is correct? - ANS The value of an investment
depends on the size, timing, and risk of the investment's cash flows
Financial managers should primarily strive to: - ANS maximize the current
value per share of existing stock
A conflict of interest between the stockholders and managers of a firm is
referred to as the: - ANS agency problem
The primary goal of financial management is to: - ANS maximize the current
value per share of existing stock
A firm has common stock of $86, paid-in surplus of $230, total liabilities of
$390, current assets of $350, and net fixed assets of $560. What is the amount
of the shareholders' equity? - ANS $520
Ivan's, Inc., paid $488 in dividends and $589 in interest this past year. Common
stock increased by $199 and retained earnings decreased by $125. What is the
net income for the year? - ANS $363
The treasurer and the controller of a corporation generally report to the: - ANS
chief financial officer
A firm's capital structure refers to the firm's: - ANS proportions of financing
from current and long-term debt and equity
Short-term finance deals with: - ANS the timing of cash flows
The process of planning and managing a firm's long-term assets is called: -
ANS capital budgeting
Any debt that must be repaid within the next year is recorded on the balance
sheet as: - ANS a current liability
A business owned by a single individual is called a: - ANS sole proprietorship
One disadvantage of the corporate form of business ownership is the: - ANS
double taxation of profits
Which one of the following business types is best suited to raising large
amounts of capital? - ANS Corporation
, Financial managers primarily create firm value by: - ANS investing in assets
that generate cash in excess of their cost
Which one of these is a cash outflow from a corporation? - ANS Tax payment
Which one of these statements is correct? - ANS The value of an investment
depends on the size, timing, and risk of the investment's cash flows
Financial managers should primarily strive to: - ANS maximize the current
value per share of existing stock
A conflict of interest between the stockholders and managers of a firm is
referred to as the: - ANS agency problem
The primary goal of financial management is to: - ANS maximize the current
value per share of existing stock
A firm has common stock of $86, paid-in surplus of $230, total liabilities of
$390, current assets of $350, and net fixed assets of $560. What is the amount
of the shareholders' equity? - ANS $520
Ivan's, Inc., paid $488 in dividends and $589 in interest this past year. Common
stock increased by $199 and retained earnings decreased by $125. What is the
net income for the year? - ANS $363
