FINA
3332 -
/ /
Principles
/
of
/
Financial
/
Management
/
FINAL
/
EXAM
/
QUESTIONS WITH CORRECT ANSWERS
/ / / /
The
/term
/multinational /corporation /is /used /to /describe /a /firm /that /operates /in /two /or /more /countries. /
True /or /False /- /verified /answer(s)-✔✔True
Which
/of
/the
/following
/represents /a /difference /between /an /S /corporation /and /a /limited /liability /company(LLC)?
a.
/An /
S
/corporation
,/can
/have
/more
/than
/one /type /of /stock /outstanding, /whereas /an /LLC /can /have /only /one /type /of /stock /outstanding.
b.
/An /
S
/corporation
/can
/choose
/to
/be /taxed /as /a /corporation /or /as /a /partnership, /whereas /an /LLC /is /taxed /as /a /corporation /only.
c.
/An /
S
/corporation
/is
/subject
/to
/unlimited
/personal /liability /of /the /owners, /whereas /an /LLC /is /subject /to /limited /personal /liability.
d.
/An /
S
/corporation
/has
/no
/more
/than /100 /stockholders, /whereas /an /LLC /can /have /more /than /100 /stockholders /(members).
e.
/An /
S
/corporation's
/business
/income
,/is
/subject
/to
/double /taxation, /whereas /an /LLC's /business /income /is /taxed /only /once. /- /verified /answer(s)-
✔✔d.
/An /
S
/corporation
/has
/no
/more
/than /100 /stockholders, /whereas /an /LLC /can /have /more /than /100 /stockholders /(members).
Which /of /the /following /is /true /of /the /greater /concentration /of /ownership /in /non-
U.S. /firms /than /in /U.S. /firms?
a. /It /makes /it /easy /to /change /managers /in /non-U.S. /firms.
b.
/It
/permits
/greater
/monitoring
/and
/control /by /individuals /or /groups /than /the /more /dispersed /ownership /structures /of /U.S. /firms.
c. /It /makes /it /difficult /for /non-U.S. /firms /to /access /credit /in /times /of /financial /difficulty.
d. /It /results /in /managers /focusing /on /short-term /goals /rather /than /on /long-term /objectives.
e. /It /reduces /the /involvement /of /stockholders /in /the /daily /operations /of /non-
U.S. /firms. /- /verified /answer(s)-
✔✔b.
/It
/permits
/greater
/monitoring
, /and
/control /by /individuals /or /groups /than /the /more /dispersed /ownership /structures /of /U.S. /firms.
In
/the
/United
/States,
/the
/most
/common
/form
/of
/business
/is
/the
/_____, /and /the /form /of /business /that /generates /most /of /the /sales /and /profits /is /the /_____.
a. /corporation; /corporation
b. /corporation; /proprietorship
c. /proprietorship; /partnership
d. /proprietorship; /corporation
e. /corporation; /partnership /- /verified /answer(s)-✔✔d. /proprietorship; /corporation
The /11 /sections /(titles) /in /the /Sarbanes-Oxley /Act /of /2002 /_____.
a. /require /corporations /to /payout /all /the /earnings /as /dividends
b. /establish /standards /for /accountability /and /responsibility /in /reporting /financial /information
c.
/allow
/management /to /take /actions /resulting /in /large /gains /to /them /and /losses /to /stockholders
d. /allow /management /to /use /confidential /information /for /personal /gains
3332 -
/ /
Principles
/
of
/
Financial
/
Management
/
FINAL
/
EXAM
/
QUESTIONS WITH CORRECT ANSWERS
/ / / /
The
/term
/multinational /corporation /is /used /to /describe /a /firm /that /operates /in /two /or /more /countries. /
True /or /False /- /verified /answer(s)-✔✔True
Which
/of
/the
/following
/represents /a /difference /between /an /S /corporation /and /a /limited /liability /company(LLC)?
a.
/An /
S
/corporation
,/can
/have
/more
/than
/one /type /of /stock /outstanding, /whereas /an /LLC /can /have /only /one /type /of /stock /outstanding.
b.
/An /
S
/corporation
/can
/choose
/to
/be /taxed /as /a /corporation /or /as /a /partnership, /whereas /an /LLC /is /taxed /as /a /corporation /only.
c.
/An /
S
/corporation
/is
/subject
/to
/unlimited
/personal /liability /of /the /owners, /whereas /an /LLC /is /subject /to /limited /personal /liability.
d.
/An /
S
/corporation
/has
/no
/more
/than /100 /stockholders, /whereas /an /LLC /can /have /more /than /100 /stockholders /(members).
e.
/An /
S
/corporation's
/business
/income
,/is
/subject
/to
/double /taxation, /whereas /an /LLC's /business /income /is /taxed /only /once. /- /verified /answer(s)-
✔✔d.
/An /
S
/corporation
/has
/no
/more
/than /100 /stockholders, /whereas /an /LLC /can /have /more /than /100 /stockholders /(members).
Which /of /the /following /is /true /of /the /greater /concentration /of /ownership /in /non-
U.S. /firms /than /in /U.S. /firms?
a. /It /makes /it /easy /to /change /managers /in /non-U.S. /firms.
b.
/It
/permits
/greater
/monitoring
/and
/control /by /individuals /or /groups /than /the /more /dispersed /ownership /structures /of /U.S. /firms.
c. /It /makes /it /difficult /for /non-U.S. /firms /to /access /credit /in /times /of /financial /difficulty.
d. /It /results /in /managers /focusing /on /short-term /goals /rather /than /on /long-term /objectives.
e. /It /reduces /the /involvement /of /stockholders /in /the /daily /operations /of /non-
U.S. /firms. /- /verified /answer(s)-
✔✔b.
/It
/permits
/greater
/monitoring
, /and
/control /by /individuals /or /groups /than /the /more /dispersed /ownership /structures /of /U.S. /firms.
In
/the
/United
/States,
/the
/most
/common
/form
/of
/business
/is
/the
/_____, /and /the /form /of /business /that /generates /most /of /the /sales /and /profits /is /the /_____.
a. /corporation; /corporation
b. /corporation; /proprietorship
c. /proprietorship; /partnership
d. /proprietorship; /corporation
e. /corporation; /partnership /- /verified /answer(s)-✔✔d. /proprietorship; /corporation
The /11 /sections /(titles) /in /the /Sarbanes-Oxley /Act /of /2002 /_____.
a. /require /corporations /to /payout /all /the /earnings /as /dividends
b. /establish /standards /for /accountability /and /responsibility /in /reporting /financial /information
c.
/allow
/management /to /take /actions /resulting /in /large /gains /to /them /and /losses /to /stockholders
d. /allow /management /to /use /confidential /information /for /personal /gains
