Chapter 01 - Introduction to Corporate Finance
Chapter 01 Introduction to Corporate Finance Answer Key Multiple Choice Questions 1. Which one of the following terms is defined as the management of a firm's long-term investments? A. working capital management
B. financial allocation
C. agency cost analysis
D. capital budgeting
E. capital structure
Refer to section 1.1 AACSB: N/ADifficulty: BasicLearning Objective: 1-1Section: 1.1Topic: Capital budgeting 2. Which one of the following terms is defined as the mixture of a firm's debt and equity financing? A. working capital management
B. cash management
C. cost analysis
D. capital budgeting
E. capital structure
Refer to section 1.1 AACSB: N/ADifficulty: BasicLearning Objective: 1-1Section: 1.1Topic: Capital structure 1-1
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3. Which one of the following is defined as a firm's short-term assets and its short-term liabilities? A. working capital
B. debt
C. investment capital
D. net capital
E. capital structure
Refer to section 1.1 AACSB: N/ADifficulty: BasicLearning Objective: 1-1Section: 1.1Topic: Working capital 4. A business owned by a solitary individual who has unlimited liability for its debt is called a: A. corporation.
B. sole proprietorship.
C. general partnership.
D. limited partnership.
E. limited liability company.
Refer to section 1.2 AACSB: N/ADifficulty: BasicLearning Objective: 1-3Section: 1.2Topic: Sole proprietorship 1-2
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5. A business formed by two or more individuals who each have unlimited liability for all of the firm's business debts is called a: A. corporation.
B. sole proprietorship.
C. general partnership.
D. limited partnership.
E. limited liability company.
Refer to section 1.2 AACSB: N/ADifficulty: BasicLearning Objective: 1-3Section: 1.2Topic: General partnership 6. A business partner whose potential financial loss in the partnership will not exceed his or her investment in that partnership is called a: A. generally partner.
B. sole proprietor.
C. limited partner.
D. corporate shareholder.
E. zero partner.
Refer to section 1.2 AACSB: N/ADifficulty: BasicLearning Objective: 1-3Section: 1.2Topic: Limited partner 1-3
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Chapter 01 Introduction to Corporate Finance Answer Key Multiple Choice Questions 1. Which one of the following terms is defined as the management of a firm's long-term investments? A. working capital management
B. financial allocation
C. agency cost analysis
D. capital budgeting
E. capital structure
Refer to section 1.1 AACSB: N/ADifficulty: BasicLearning Objective: 1-1Section: 1.1Topic: Capital budgeting 2. Which one of the following terms is defined as the mixture of a firm's debt and equity financing? A. working capital management
B. cash management
C. cost analysis
D. capital budgeting
E. capital structure
Refer to section 1.1 AACSB: N/ADifficulty: BasicLearning Objective: 1-1Section: 1.1Topic: Capital structure 1-1
https://www.stuvia.com/ Chapter 01 - Introduction to Corporate Finance
3. Which one of the following is defined as a firm's short-term assets and its short-term liabilities? A. working capital
B. debt
C. investment capital
D. net capital
E. capital structure
Refer to section 1.1 AACSB: N/ADifficulty: BasicLearning Objective: 1-1Section: 1.1Topic: Working capital 4. A business owned by a solitary individual who has unlimited liability for its debt is called a: A. corporation.
B. sole proprietorship.
C. general partnership.
D. limited partnership.
E. limited liability company.
Refer to section 1.2 AACSB: N/ADifficulty: BasicLearning Objective: 1-3Section: 1.2Topic: Sole proprietorship 1-2
https://www.stuvia.com/ Chapter 01 - Introduction to Corporate Finance
5. A business formed by two or more individuals who each have unlimited liability for all of the firm's business debts is called a: A. corporation.
B. sole proprietorship.
C. general partnership.
D. limited partnership.
E. limited liability company.
Refer to section 1.2 AACSB: N/ADifficulty: BasicLearning Objective: 1-3Section: 1.2Topic: General partnership 6. A business partner whose potential financial loss in the partnership will not exceed his or her investment in that partnership is called a: A. generally partner.
B. sole proprietor.
C. limited partner.
D. corporate shareholder.
E. zero partner.
Refer to section 1.2 AACSB: N/ADifficulty: BasicLearning Objective: 1-3Section: 1.2Topic: Limited partner 1-3
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