Finance 301 Exam Questions and Answers – % Guaranteed Success 2026/2027 – Complete Study Guide

FINANCE 301




FINANCE 301 EXAM QUESTIONS AND ANSWERS % GUARANTEED
SUCCESS.

Which of the following matters most to investors when making an investment?
-firm's current ratio
-firm's retained earnings
-firm's cash flows
-firm's previous dividend payments answer >>>>> Firm’s cash flows


Capital budgeting involves....
-determining how much money should be paid as dividends
-determining how a firm should finance its assets
-making decisions about how much debt a firm should have in its capital structure
-determining which productive assets a firm should buy answer >>>>>
determining which productive assets a firm should buy


A benefit of the corporate form of business is the.
-limited liability owners
-flow-through taxation
-tax exemption of dividends
-easiness to start answer >>>>> limited liability owners


If you have loaned capital to a firm, then you could be

, FINANCE 301


-a manager
-a stakeholder
-a partner
-all of the above answer >>>>> a stakeholder


which of the following is a basic source of funds for a firm?
-debt
-equity
-asset liquidations
-both debt and equity answer >>>>> both debt and equity


cash dividends are paid out of
-residual cash flows
-liquidated assets
-long-term debt
-all of the above answer >>>>> residual cash flows


working capital management decisions help to determine
-how a firm's day-to-day financial matters should be managed
-how a firm should finance its assets
-which productive assets a firm should purchase
-all of the above answer >>>>> how a firm's day-to-day financial matters should
be managed