TEST BANK For Corporate Finance, 13th Edition By Stephen Ross, Randolph Westerfield, Verified Chapters 1 - 31, Complete Newest Version

Test Bank for Corporate Finance 13th Edition by
Stephen Ross, Randolph Westerfield, Jeffrey Jaffe,
Bradford Jordan All Chapters Complete

,Chapter 01 Introduction to Corporate Finance Answer Key tc tc tc tc tc tc tc




MultipleChoiceQuestions tc tc




1. Which one of the following terms is defined as the management of a firm's long-
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t term investments?
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A. working capital management tc tc




B. financialallocation tc




C. agency cost analysis tc tc




D. capital budgeting
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E. capital structur
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e Refer to section 1.
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1


AACSB: N/A tc



Difficulty: Basic Learnin tc t c



gObjective: 1-1
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Section: 1.1 tc



Topic: Capital budgeting
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2. Which one of the following terms is defined as the mixture of a firm's debt and equity fi
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nancing?
A. working capital management tc tc




B. cashmanagement tc




C. cost analysis tc




D. capital budgeting tc




E. capital structur
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e Refer to section 1.
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1


AACSB: N/A tc



Difficulty: Basic Learnin tc t c



gObjective: 1-1
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Section: 1.1 tc



Topic: Capital structure
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,3. Which one of the following is defined as a firm's short-term assets and its short-
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t term liabilities?
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A. working capital tc




B. debt
C. investmentcapital tc




D. net capital tc




E. capital structur t c




e Refer to section 1.
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1


AACSB: N/A tc



Difficulty: Basic Learnin tc t c



gObjective: 1-1
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Section: 1.1 tc



Topic: Working capital
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4. A business owned by a solitary individual who has unlimited liability for its debt is called a:
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A. corporation.
B. sole proprietorship.
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C. generalpartnership. tc




D. limitedpartnership. tc




E. limited liability company. tc tc t c




Refer to section 1.2 tc tc tc




AACSB: N/A tc



Difficulty: Basic Learnin tc t c



gObjective: 1-3
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Section: 1.2 tc



Topic: Sole proprietorship
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, 5. A business formed by two or more individuals who each have unlimited liability for all of th
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e firm's business debts is called a:
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A. corporation.
B. soleproprietorship. tc




C. general partnership.
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D. limitedpartnership. tc




E. limited liability company. tc tc t c




Refer to section 1.2 tc tc tc




AACSB: N/A tc



Difficulty: Basic Learning tc t c tc



Objective: 1-3 ct




Section: 1.2 tc



Topic: General partnership
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6. A business partner whose potential financial loss in the partnership will not exceed his or h
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er investment in that partnership is called a:
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A. generallypartner. tc




B. soleproprietor. tc




C. limited partner.
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D. corporateshareholder. tc




E. zeropartner. Ref tc t c




er to section 1.2
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AACSB: N/A tc



Difficulty: Basic Learning tc t c tc



Objective: 1-3 ct



Section: 1.2 tc



Topic: Limited partner
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