Version 1
li1
,Corporate liFinance li13th liStephen liRoss, liRandolph liWesterfield, liJeffrey liJaffe
Chapter li1
Student liname:_ li
MULTIPLE liCHOICE li- liChoose lithe lione lialternative lithat libest licompletes lithe listatement
liorilanswers lithe liquestion.
1) Generally, liamong lithose liwho lireport lidirectly lito lithe are lithe litreasurer liand
litheilcontroller liof lia licorporation.
A) board liof lidirectors
B) chairperson liof lithe liboard
C) chief liexecutive liofficer
D) president
E) chief lifinancial liofficer
2) A litypical lichain liof licommand liin lia licorporation liis lidescribed liby liwhich lione liof lithe
li followingilstatements?
A) The liinformation lisystems limanager lireports lito lithe litreasurer.
B) The licredit limanager lireports lito lithe litreasurer.
C) The licontroller lireports lito lithe lichief liexecutive liofficer.
D) The litax limanager lireports lito lithe litreasurer.
E) The licapital liexpenditures limanager lireports lito lithe licontroller.
3) Answering liwhich lione liof lithe lifollowing liquestions liinvolves limaking lia licapital
libudgetingildecision?
Version 2
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, A) How limuch lidebt lishould lithe lifirm liborrow lifrom lia liparticular lilender?
B) Should lithe lifirm libuild lia linew liproduction lifacility?
C) Should lithe lifirm liissue linew liequity lito lipay lifor liits ligrowth ligoals?
D) How limuch liinventory lishould lithe lifirm likeep lion lihand?
E) How limuch licredit lishould lithe lifirm liextend lito lia liparticular licustomer?
4) Which lione liof lithe lifollowing listatements liis liaccurate?
A) Net liworking licapital liequals licurrent liassets liplus licurrent liliabilities.
B) Current liliabilities liare lidebts lithat limust libe lirepaid liin li18 limonths lior liless.
C) Current liassets liare liassets liwith lishort lilives, lisuch lias liaccounts lireceivable.
D) Long-term lidebt liis lidefined lias lia liresidual liclaim lion lia lifirm’s liassets.
E) Tangible liassets liare lifixed liassets lisuch lias lipatents.
5) Among lithe litypical liresponsibilities liof lithe licorporate licontroller liis:
A) capital liexpenditures limanagement.
B) cash limanagement.
C) tax lireporting.
D) financial liplanning.
E) credit limanagement.
6) li is litypically lithe liresponsibility liof lithe licorporate litreasurer.
A) Financial liplanning
B) Cost liaccounting
C) Tax lireporting
D) Information lisystems
E) Financial liaccounting
7) A lifirm’s define(s) liits licapital listructure.
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, A) mixture liof livarious litypes liof liproduction liequipment
B) investment liselections lifor liits liexcess licash lireserves
C) combination liof licash liand licash liequivalents
D) combination liof liaccounts liappearing lion lithe lileft liside liof liits libalance lisheet
E) proportions liof lifinancing lifrom lidebt liand liequity
8) The lifocus liof lishort-term lifinance liis lion:
A) the litiming liof licash liflows.
B) acquiring liand liselling lifixed liassets.
C) financing lilong-term liprojects.
D) capital libudgeting.
E) issuing liadditional lishares liof licommon listock.
9) Net liworking licapital liincludes:
A) copyrights.
B) manufacturing liequipment.
C) common listock.
D) long-term lidebt.
E) inventory.
10) li is lidefined lias liplanning liand limanaging lia lifirm’s lilong-term liassets.
A) Working licapital limanagement
B) Cash limanagement
C) Cost liaccounting limanagement
D) Capital libudgeting
E) Capital listructure limanagement
11) An liamount lithe lifirms liowes, liwhich liit limust lirepay liwithin litwelve limonths, liis licalled
lia(n):
Version 4
li1
li1
,Corporate liFinance li13th liStephen liRoss, liRandolph liWesterfield, liJeffrey liJaffe
Chapter li1
Student liname:_ li
MULTIPLE liCHOICE li- liChoose lithe lione lialternative lithat libest licompletes lithe listatement
liorilanswers lithe liquestion.
1) Generally, liamong lithose liwho lireport lidirectly lito lithe are lithe litreasurer liand
litheilcontroller liof lia licorporation.
A) board liof lidirectors
B) chairperson liof lithe liboard
C) chief liexecutive liofficer
D) president
E) chief lifinancial liofficer
2) A litypical lichain liof licommand liin lia licorporation liis lidescribed liby liwhich lione liof lithe
li followingilstatements?
A) The liinformation lisystems limanager lireports lito lithe litreasurer.
B) The licredit limanager lireports lito lithe litreasurer.
C) The licontroller lireports lito lithe lichief liexecutive liofficer.
D) The litax limanager lireports lito lithe litreasurer.
E) The licapital liexpenditures limanager lireports lito lithe licontroller.
3) Answering liwhich lione liof lithe lifollowing liquestions liinvolves limaking lia licapital
libudgetingildecision?
Version 2
li1
, A) How limuch lidebt lishould lithe lifirm liborrow lifrom lia liparticular lilender?
B) Should lithe lifirm libuild lia linew liproduction lifacility?
C) Should lithe lifirm liissue linew liequity lito lipay lifor liits ligrowth ligoals?
D) How limuch liinventory lishould lithe lifirm likeep lion lihand?
E) How limuch licredit lishould lithe lifirm liextend lito lia liparticular licustomer?
4) Which lione liof lithe lifollowing listatements liis liaccurate?
A) Net liworking licapital liequals licurrent liassets liplus licurrent liliabilities.
B) Current liliabilities liare lidebts lithat limust libe lirepaid liin li18 limonths lior liless.
C) Current liassets liare liassets liwith lishort lilives, lisuch lias liaccounts lireceivable.
D) Long-term lidebt liis lidefined lias lia liresidual liclaim lion lia lifirm’s liassets.
E) Tangible liassets liare lifixed liassets lisuch lias lipatents.
5) Among lithe litypical liresponsibilities liof lithe licorporate licontroller liis:
A) capital liexpenditures limanagement.
B) cash limanagement.
C) tax lireporting.
D) financial liplanning.
E) credit limanagement.
6) li is litypically lithe liresponsibility liof lithe licorporate litreasurer.
A) Financial liplanning
B) Cost liaccounting
C) Tax lireporting
D) Information lisystems
E) Financial liaccounting
7) A lifirm’s define(s) liits licapital listructure.
Version 3
li1
, A) mixture liof livarious litypes liof liproduction liequipment
B) investment liselections lifor liits liexcess licash lireserves
C) combination liof licash liand licash liequivalents
D) combination liof liaccounts liappearing lion lithe lileft liside liof liits libalance lisheet
E) proportions liof lifinancing lifrom lidebt liand liequity
8) The lifocus liof lishort-term lifinance liis lion:
A) the litiming liof licash liflows.
B) acquiring liand liselling lifixed liassets.
C) financing lilong-term liprojects.
D) capital libudgeting.
E) issuing liadditional lishares liof licommon listock.
9) Net liworking licapital liincludes:
A) copyrights.
B) manufacturing liequipment.
C) common listock.
D) long-term lidebt.
E) inventory.
10) li is lidefined lias liplanning liand limanaging lia lifirm’s lilong-term liassets.
A) Working licapital limanagement
B) Cash limanagement
C) Cost liaccounting limanagement
D) Capital libudgeting
E) Capital listructure limanagement
11) An liamount lithe lifirms liowes, liwhich liit limust lirepay liwithin litwelve limonths, liis licalled
lia(n):
Version 4
li1
