KU Fin 310 exam 1 UPDATED ACTUAL Questions And Correct Answers
C
Terms in this set (65)
Which of the following statements about corporate form A. the shareholders are the owners of the firm and hold the top priority claim
of ownership is FALSE? among all stakeholders
A. the shareholders are the owners of the firm and hold
the top priority claim among all stakeholders
B. the shareholders elect the directors of the corp,
usually in uncontested elections.
C. the directors appoint the firm's management, and yes
managers usually participate in nominating new
candidates for directors.
D. separation of ownership from control can cause
agency problems where managers act in their own
interests, rather than shareholders' interests.
Which of the following statements is TRUE? C. while maximizing stockholder wealth is the relevant goal of the corporation,
sometimes management goals are pursued at the expense of the stakeholders.
A. bank loans, private placenta to funds and insurance
companies, and investment bank transactions are all
activities in the secondary markets.
B. like general partners, the owners of a corp have
unlimited liability for business debts.
C. while maximizing stockholder wealth is the relevant
goal of the corporation, sometimes management goals
are pursued at the expense of the stakeholders.
D. the sarbanes-oxley act of 2002 dramatically
streamlined American corporate regulations resulting in
billions of dollars in overall savings.
Which of the following statements is FALSE? B. capital budgeting is the process of planning and managing a firm's short term
investments.
A. financial mangers make three basic types of decisions:
capital budgeting, capital structure, and working capital
management.
B. capital budgeting is the process of planning and
managing a firm's short term investments.
C. the primary goal for corporate managers should be to
make good decisions to maximize the market value of the
owners equity.
D. agency conflicts, which sometimes arise when CEO's
are overall motivate to seek job security, can be reduced
by adjusting managerial compensation.
, Which of the following statements if TRUE? C. corporations face double taxation, meaning the corp pays taxes on income
before dividends and then owners pay personal taxes on dividends and capital
A. in a sole proprietorship, the owner has limited liability gains.
and full control.
B. in a partnership, ownership can be transferred quickly,
and capital can be raised easily.
C. corporations face double taxation, meaning the corp
pays taxes on income before dividends and then owners
pay personal taxes on dividends and capital gains.
D. intended to improve public disclosures, the sarbanes-
oxley act has likely increased the number of small
companies going public in the USA.
Managers should act in shareholders' interests because C. bottom
shareholders have ___ priority in receiving their claims.
A. top
B. somewhere in the middle
C. bottom
D. equal (to those of all other stakeholders)
Which of the following is NOT an effective means of D. compensating managers with salaries significantly higher than their peers
aligning management goals with shareholder interests?
A. employee stock options
B. threat of a takeover
C. management bonuses tied to performance goals
D. compensating managers with salaries significantly
higher than their peers
C
Terms in this set (65)
Which of the following statements about corporate form A. the shareholders are the owners of the firm and hold the top priority claim
of ownership is FALSE? among all stakeholders
A. the shareholders are the owners of the firm and hold
the top priority claim among all stakeholders
B. the shareholders elect the directors of the corp,
usually in uncontested elections.
C. the directors appoint the firm's management, and yes
managers usually participate in nominating new
candidates for directors.
D. separation of ownership from control can cause
agency problems where managers act in their own
interests, rather than shareholders' interests.
Which of the following statements is TRUE? C. while maximizing stockholder wealth is the relevant goal of the corporation,
sometimes management goals are pursued at the expense of the stakeholders.
A. bank loans, private placenta to funds and insurance
companies, and investment bank transactions are all
activities in the secondary markets.
B. like general partners, the owners of a corp have
unlimited liability for business debts.
C. while maximizing stockholder wealth is the relevant
goal of the corporation, sometimes management goals
are pursued at the expense of the stakeholders.
D. the sarbanes-oxley act of 2002 dramatically
streamlined American corporate regulations resulting in
billions of dollars in overall savings.
Which of the following statements is FALSE? B. capital budgeting is the process of planning and managing a firm's short term
investments.
A. financial mangers make three basic types of decisions:
capital budgeting, capital structure, and working capital
management.
B. capital budgeting is the process of planning and
managing a firm's short term investments.
C. the primary goal for corporate managers should be to
make good decisions to maximize the market value of the
owners equity.
D. agency conflicts, which sometimes arise when CEO's
are overall motivate to seek job security, can be reduced
by adjusting managerial compensation.
, Which of the following statements if TRUE? C. corporations face double taxation, meaning the corp pays taxes on income
before dividends and then owners pay personal taxes on dividends and capital
A. in a sole proprietorship, the owner has limited liability gains.
and full control.
B. in a partnership, ownership can be transferred quickly,
and capital can be raised easily.
C. corporations face double taxation, meaning the corp
pays taxes on income before dividends and then owners
pay personal taxes on dividends and capital gains.
D. intended to improve public disclosures, the sarbanes-
oxley act has likely increased the number of small
companies going public in the USA.
Managers should act in shareholders' interests because C. bottom
shareholders have ___ priority in receiving their claims.
A. top
B. somewhere in the middle
C. bottom
D. equal (to those of all other stakeholders)
Which of the following is NOT an effective means of D. compensating managers with salaries significantly higher than their peers
aligning management goals with shareholder interests?
A. employee stock options
B. threat of a takeover
C. management bonuses tied to performance goals
D. compensating managers with salaries significantly
higher than their peers
