Assessment 1 (page 1 of 4) https://mymodules.dtls.unisa.ac.za/mod/quiz/attempt.php?attempt=11
UNISA 2023 FIN2601-23-S2 Welcome Message Assessment 1
QUIZ
Question 1
Not yet answered
Marked out of 1.00
What is a company's primary shortcoming in terms of its legitimacy as a
corporate entity?
1. The owners lack con�dentiality because regulations oblige �rms to
disclose �nancial results.
2. The ability of the owners to raise funds is improved by having more
owners.
3. The owners have limited liability and cannot endure a loss more than
their initial investment.
4. The owner has unlimited liability in that personal wealth can be taken to
satisfy debts.
Clear my choice
Question 2
Not yet answered
Marked out of 1.00
Which of the following claims about pro�t maximization being the �rm's goal is
not ideal?
1. pro�ts are only accounting measures.
2. pro�t maximisation does not consider risk.
3. cash �ows are more representative of �nancial strength.
4. pro�ts today are less desirable than pro�ts earned in future years.
Clear my choice
1 of 2 8/4/2023, 9:52
,Assessment 1 (page 1 of 4) https://mymodules.dtls.unisa.ac.za/mod/quiz/attempt.php?attempt=11
Question 3
Not yet answered
Marked out of 1.00
The principal-agent problem describes an instance where:
1. shareholders prevent managers from maximising pro�ts.
2. managers disagree with employees on production issues.
3. �rms fail to achieve market power because of managerial incompetence.
4. managers follow their own inclinations, which frequently diverge from
the objectives of shareholders.
Clear my choice
2 of 2 8/4/2023, 9:52
UNISA 2023 FIN2601-23-S2 Welcome Message Assessment 1
QUIZ
Question 1
Not yet answered
Marked out of 1.00
What is a company's primary shortcoming in terms of its legitimacy as a
corporate entity?
1. The owners lack con�dentiality because regulations oblige �rms to
disclose �nancial results.
2. The ability of the owners to raise funds is improved by having more
owners.
3. The owners have limited liability and cannot endure a loss more than
their initial investment.
4. The owner has unlimited liability in that personal wealth can be taken to
satisfy debts.
Clear my choice
Question 2
Not yet answered
Marked out of 1.00
Which of the following claims about pro�t maximization being the �rm's goal is
not ideal?
1. pro�ts are only accounting measures.
2. pro�t maximisation does not consider risk.
3. cash �ows are more representative of �nancial strength.
4. pro�ts today are less desirable than pro�ts earned in future years.
Clear my choice
1 of 2 8/4/2023, 9:52
,Assessment 1 (page 1 of 4) https://mymodules.dtls.unisa.ac.za/mod/quiz/attempt.php?attempt=11
Question 3
Not yet answered
Marked out of 1.00
The principal-agent problem describes an instance where:
1. shareholders prevent managers from maximising pro�ts.
2. managers disagree with employees on production issues.
3. �rms fail to achieve market power because of managerial incompetence.
4. managers follow their own inclinations, which frequently diverge from
the objectives of shareholders.
Clear my choice
2 of 2 8/4/2023, 9:52
