uky Fin 300 test 1 Question and answers
already passed 2025
Corporate Finance - correct answer ✔being inside of a nonfinancial firm
looking out with the goal of maximizing shareholder wealth.
Investments - correct answer ✔trying to maximize their own wealth and well-
being, their perspective is from outside the firm looking in.
Financial Intermediaries - correct answer ✔outside a nonfinancial firm, but
they often have some inside position.
investors' required return = - correct answer ✔the firm's cost of capital
Sole Proprietorships liability - correct answer ✔one owner; unlimited
personal liability
Partnerships liability - correct answer ✔All partners are liable for the firm's
debt.
Limited partners cannot run business
Limited Liability Companies (LLC): - correct answer ✔A Hybrid of
Partnership and Corporation
Limited Liability Companies (LLC) liability - correct answer ✔All owners have
limited liability and can run business
, The balance sheet offers insight into the - correct answer ✔decisions,
activities and objectives of the Financial Manager
Balance Sheet Reveals - correct answer ✔long-term investments, raise
funds, current assets
Capital Structure - correct answer ✔Long-term Debt vs. equity
Net working capital formula - correct answer ✔current assets - current
liabilities
The primary goal of a company is to maximize its share price - correct answer
✔true
the primary goal of a company is to maximize its share price - correct answer
✔true
total assets = - correct answer ✔total liabilities + stockholders equity
operating cash flow - correct answer ✔ebit +depreciation - taxes
ebit - correct answer ✔earnings before taxes
can capital spending be negative? - correct answer ✔yes. if you sold more
assets than you bought
cash flow to creditors = - correct answer ✔interest paid - net new borrowing
already passed 2025
Corporate Finance - correct answer ✔being inside of a nonfinancial firm
looking out with the goal of maximizing shareholder wealth.
Investments - correct answer ✔trying to maximize their own wealth and well-
being, their perspective is from outside the firm looking in.
Financial Intermediaries - correct answer ✔outside a nonfinancial firm, but
they often have some inside position.
investors' required return = - correct answer ✔the firm's cost of capital
Sole Proprietorships liability - correct answer ✔one owner; unlimited
personal liability
Partnerships liability - correct answer ✔All partners are liable for the firm's
debt.
Limited partners cannot run business
Limited Liability Companies (LLC): - correct answer ✔A Hybrid of
Partnership and Corporation
Limited Liability Companies (LLC) liability - correct answer ✔All owners have
limited liability and can run business
, The balance sheet offers insight into the - correct answer ✔decisions,
activities and objectives of the Financial Manager
Balance Sheet Reveals - correct answer ✔long-term investments, raise
funds, current assets
Capital Structure - correct answer ✔Long-term Debt vs. equity
Net working capital formula - correct answer ✔current assets - current
liabilities
The primary goal of a company is to maximize its share price - correct answer
✔true
the primary goal of a company is to maximize its share price - correct answer
✔true
total assets = - correct answer ✔total liabilities + stockholders equity
operating cash flow - correct answer ✔ebit +depreciation - taxes
ebit - correct answer ✔earnings before taxes
can capital spending be negative? - correct answer ✔yes. if you sold more
assets than you bought
cash flow to creditors = - correct answer ✔interest paid - net new borrowing
