BFIN 300 Test 2- Questions with Correct Verified Answers

BFIN 300 Test 2- Questions with Correct Verified
Answers
The process of planning and managing a firm's long-term investments is called:

A. Capital Budgeting

B. Working Capital

C. Profit Maximization

D. Capital Structure

A. Capital Budgeting

Which of the following is an example of an indirect agency cost?

A. Unnecessary corporate expenditure

B. Management auditing expense

C. A lost opportunity

D. All the above

A. Unnecessary corporate expenditure

Which of the following forms of business organization is subject to double taxation?

A. Corporation

B. Partnership

C. Limited Partnership

D. Sole Proprietorship

A. Corporation

, Control of a firm ultimately rests with

A. The CEO

B. The SEC

C. The Stockholders

D. The Founder

C. The Stockholders

5) Which of the following should a financial manager take into account when considering

an opportunity?

A. How much cash they expect to receive

B. When will they receive the funds

C. How likely they are to receive the funds

D. All of the above

D. All of the above

ABC Corporation has current assets of $5,200, fixed assets of $26,000, current liabilities of

$4,900, and long-term debt of $15,000. What is the ABC Corporation's total equity? What

is the NWC of ABC Corporation?

A. Total Equity $11,000, NWC $11, 300

B. Total Equity $11,300, NWC $300

C. Total Equity $11,000, NWC $300

D. Total Equity 11,300, NWC $11,000

B. Total Equity $11,300, NWC $300