BCOR 2204 Quiz 1
uptown markets is financed with 45%
debt and 55% equity. this mixture of debt capital structure
and equity is referred to as the firm's:
theo's bbq has $48,000 in current assets
and $39,000 in current liabilities. deci-
working capital management
sions related to these accounts are re-
ferred to as:
Margie opened a used bookstore and
is both the 100 percent owner and the
store's manager. Which type of business sole proprietorship
entity does Margie own if she is person-
ally liable for all the store's debts?
Will and Bill both enjoy sunshine, wa-
ter, and surfboards. Thus, the two friends
decided to create a business together
renting surfboards, paddle boats, and in-
flatable devices in California. Will and Bill
general partnership
will equally share in the decision mak-
ing and in the business profits or losses.
Which type of business did they create
if they both have full personal liability for
the firm's debts?
Matt and Alicia created a firm that is
a separate legal entity and will share
ownership of that firm on a 75/25 ba-
corporation
sis. Which type of entity did they create
if they have no personal liability for the
firm's debts?
the potential conflict of interest between
a firm's owners and its managers is re- agency
ferred to as which type of conflict?
capital budgeting includes the evaluation
size, timing, and risk of future cash flows
of which of the following?
which of the following is a working capital how much cash should the firm keep in
decision? reserve?
1/8
, BCOR 2204 Quiz 1
which one of the following is a capital establishing the preferred debt-equity
structure decision? level
the daily financial operations of a firm are
working capital
primarily controlled by managing the:
a sole proprietorship: has its profits taxed as personal income
which one of the following forms of busi-
ness organization offers liability protec-
limited partnership
tion to some of its owners but not to all of
its owners?
in a general partnership, each partner is the total debts of the partnership, even if
personally liable for: he or she was unaware of those debts
which is an advantage of being a limited
losses limited to capital invested
partner?
a corporation: is a legal entity separate from its owners
one advantage of the corporate form of ability to raise larger sums of equity cap-
organization is the: ital than other organizational forms
limited liability companies are primarily provide limited liability which avoiding
designed to: double taxation
the primary goal of financial manage-
the market value of existing stock
ment is to maximize:
the primary goal of financial manage-
ment is most associated with increasing market value of the firm
the:
the goal of financial management is to
current market value per share
increase the:
which one of the following situations is basing management bonuses on the
most apt to create an agency conflict? length of employment
which one of the following is most apt compensating managers with shares of
to align management's priorities with stock that must be held for a minimum of
shareholders' interests? three years
The Pretzel Factory has net sales of
$821,300 and costs of $698,500. The de-
$93,560
preciation expense is $28,400 and the in-
terest paid is $8,400. What is the amount
2/8
uptown markets is financed with 45%
debt and 55% equity. this mixture of debt capital structure
and equity is referred to as the firm's:
theo's bbq has $48,000 in current assets
and $39,000 in current liabilities. deci-
working capital management
sions related to these accounts are re-
ferred to as:
Margie opened a used bookstore and
is both the 100 percent owner and the
store's manager. Which type of business sole proprietorship
entity does Margie own if she is person-
ally liable for all the store's debts?
Will and Bill both enjoy sunshine, wa-
ter, and surfboards. Thus, the two friends
decided to create a business together
renting surfboards, paddle boats, and in-
flatable devices in California. Will and Bill
general partnership
will equally share in the decision mak-
ing and in the business profits or losses.
Which type of business did they create
if they both have full personal liability for
the firm's debts?
Matt and Alicia created a firm that is
a separate legal entity and will share
ownership of that firm on a 75/25 ba-
corporation
sis. Which type of entity did they create
if they have no personal liability for the
firm's debts?
the potential conflict of interest between
a firm's owners and its managers is re- agency
ferred to as which type of conflict?
capital budgeting includes the evaluation
size, timing, and risk of future cash flows
of which of the following?
which of the following is a working capital how much cash should the firm keep in
decision? reserve?
1/8
, BCOR 2204 Quiz 1
which one of the following is a capital establishing the preferred debt-equity
structure decision? level
the daily financial operations of a firm are
working capital
primarily controlled by managing the:
a sole proprietorship: has its profits taxed as personal income
which one of the following forms of busi-
ness organization offers liability protec-
limited partnership
tion to some of its owners but not to all of
its owners?
in a general partnership, each partner is the total debts of the partnership, even if
personally liable for: he or she was unaware of those debts
which is an advantage of being a limited
losses limited to capital invested
partner?
a corporation: is a legal entity separate from its owners
one advantage of the corporate form of ability to raise larger sums of equity cap-
organization is the: ital than other organizational forms
limited liability companies are primarily provide limited liability which avoiding
designed to: double taxation
the primary goal of financial manage-
the market value of existing stock
ment is to maximize:
the primary goal of financial manage-
ment is most associated with increasing market value of the firm
the:
the goal of financial management is to
current market value per share
increase the:
which one of the following situations is basing management bonuses on the
most apt to create an agency conflict? length of employment
which one of the following is most apt compensating managers with shares of
to align management's priorities with stock that must be held for a minimum of
shareholders' interests? three years
The Pretzel Factory has net sales of
$821,300 and costs of $698,500. The de-
$93,560
preciation expense is $28,400 and the in-
terest paid is $8,400. What is the amount
2/8
