FINANCE EXAM #1 PRACTICE | 2025/2026 UPDATE |
QUESTIONS AND ANSWERS | SOLVED 100%
CORRECT!!
The owners of a corporation are the___________________.
The primary goal of the corporate management team is to ___________ the
shareholders' wealth by ______________the _____________________over
the long run. Answer - 1.) shareholders of the company
2.) maximize
3.) maximizing
4.) company's stock price
Krit Corp. is a US manufacturing company based in the Midwest. As an investor,
Wilson bought 175 shares of stock in Krit Corp. The stock price of Krit Corp. is
currently trading at $30.00 per share.
Wilson's total wealth in Krit Corp. is: Answer - $5,250.00
If the stock price of Krit Corp. decreases in the next two years, Wilson's wealth
in Krit Corp. will _______________________ . Answer - Decrease
The CFO is not responsible for which of the following departments? Check all
that apply.
a.) Administration
b.) Human resources
c.) Credit
, d.) Legal issues
e.) Investor relations Answer - a.) Administration
b.) Human resources
Both the CEO and the CFO are required to certify the accuracy of information
contained in financial statements, reports, press releases, and any other form
of public announcement made by a company. This requirement was instituted
in 2002 as a part of the________________. Answer - Sarbanes-Oxley Act .
William, the chief executive officer (CEO) of ABC Corp., must make decisions
that help achieve the primary goal of the corporation: maximize shareholders'
wealth. Answer - Corporate Finance
Adam works for an investment bank and makes decisions about the sale of new
common stock by ABCL Inc. Answer - Capital Markets
As a technical trader, you will be analyzing investor psychology and making
investment decisions based on how investors behave during certain situations.
Answer - Investments
Different forms of businesses have different characteristics. Which of the
following characteristics would apply to a limited liability company and a
limited liability partnership? Check all that apply.
a.) Owners have limited liability and right to vote
b.) Have corporate ownership structure
c.) LLPs are not suitable for professional firms such as accounting, law, and
architecture
d.) Taxed as a partnership
e.) Owned by single individual
QUESTIONS AND ANSWERS | SOLVED 100%
CORRECT!!
The owners of a corporation are the___________________.
The primary goal of the corporate management team is to ___________ the
shareholders' wealth by ______________the _____________________over
the long run. Answer - 1.) shareholders of the company
2.) maximize
3.) maximizing
4.) company's stock price
Krit Corp. is a US manufacturing company based in the Midwest. As an investor,
Wilson bought 175 shares of stock in Krit Corp. The stock price of Krit Corp. is
currently trading at $30.00 per share.
Wilson's total wealth in Krit Corp. is: Answer - $5,250.00
If the stock price of Krit Corp. decreases in the next two years, Wilson's wealth
in Krit Corp. will _______________________ . Answer - Decrease
The CFO is not responsible for which of the following departments? Check all
that apply.
a.) Administration
b.) Human resources
c.) Credit
, d.) Legal issues
e.) Investor relations Answer - a.) Administration
b.) Human resources
Both the CEO and the CFO are required to certify the accuracy of information
contained in financial statements, reports, press releases, and any other form
of public announcement made by a company. This requirement was instituted
in 2002 as a part of the________________. Answer - Sarbanes-Oxley Act .
William, the chief executive officer (CEO) of ABC Corp., must make decisions
that help achieve the primary goal of the corporation: maximize shareholders'
wealth. Answer - Corporate Finance
Adam works for an investment bank and makes decisions about the sale of new
common stock by ABCL Inc. Answer - Capital Markets
As a technical trader, you will be analyzing investor psychology and making
investment decisions based on how investors behave during certain situations.
Answer - Investments
Different forms of businesses have different characteristics. Which of the
following characteristics would apply to a limited liability company and a
limited liability partnership? Check all that apply.
a.) Owners have limited liability and right to vote
b.) Have corporate ownership structure
c.) LLPs are not suitable for professional firms such as accounting, law, and
architecture
d.) Taxed as a partnership
e.) Owned by single individual
