Test Bank for
Fundamentals
of Corporate
Finance 11th
Edition by
Ross
,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?
,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?
, 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
Fundamentals
of Corporate
Finance 11th
Edition by
Ross
,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?
,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?
, 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
