Test Bank For Corporate Finance, 12TH
Edition By Ross | Complete All Chapters
1-31.
,
,Corporate Finance, 12e (Ross)
Chapter 1 Introduction to Corporate Finance
1) Which one of the following statements correctly depicts the common chain of command in
a corporation?
A) The information systems manager reports to the treasurer.
B) The credit manager reports to the treasurer.
C) The controller reports to the chief executive officer.
D) The tax manager reports to the treasurer.
E) The capital expenditures manager reports to the controller.
Answer: B
Difficulty: 1 Easy
Section: 1.1 What is Corporate Finance?
Topic: Management organization and roles
Bloom's: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
2) Which one of the following is a capital budgeting decision?
A) Determining how much debt should be borrowed from a particular lender
B) Deciding whether or not a new production facility should be built
C) Deciding when to repay a long-term debt
D) Determining how much inventory to keep on hand
E) Deciding how much credit to grant to a particular customer
Answer: B
Difficulty: 1 Easy
Section: 1.1 What is Corporate Finance?
Topic: Capital budgeting
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
3) The corporate controller is generally responsible for which one of these functions?
A) Capital expenditures
1
, B) Cash management
C) Tax reporting
D) Financial planning
E) Credit management
Answer: C
Difficulty: 1 Easy
Section: 1.1 What is Corporate Finance?
Topic: Management organization and roles
Bloom's: Remember
6) The corporate treasurer oversees which one of these areas?
A) Financial planning
B) Cost accounting
C) Tax reporting
D) Information systems
E) Financial accounting
Answer: A
Difficulty: 1 Easy
Section: 1.1 What is Corporate Finance?
Topic: Management organization and roles
Bloom's: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
1) The treasurer and the controller of a corporation generally report to the: A)
board of directors.
B) chairman of the board.
C) chief executive officer.
D) president.
E) chief financial officer.
Answer: E
Difficulty: 1 Easy
Section: 1.1 What is Corporate Finance?
Topic: Management organization and roles
Bloom's: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
2
Edition By Ross | Complete All Chapters
1-31.
,
,Corporate Finance, 12e (Ross)
Chapter 1 Introduction to Corporate Finance
1) Which one of the following statements correctly depicts the common chain of command in
a corporation?
A) The information systems manager reports to the treasurer.
B) The credit manager reports to the treasurer.
C) The controller reports to the chief executive officer.
D) The tax manager reports to the treasurer.
E) The capital expenditures manager reports to the controller.
Answer: B
Difficulty: 1 Easy
Section: 1.1 What is Corporate Finance?
Topic: Management organization and roles
Bloom's: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
2) Which one of the following is a capital budgeting decision?
A) Determining how much debt should be borrowed from a particular lender
B) Deciding whether or not a new production facility should be built
C) Deciding when to repay a long-term debt
D) Determining how much inventory to keep on hand
E) Deciding how much credit to grant to a particular customer
Answer: B
Difficulty: 1 Easy
Section: 1.1 What is Corporate Finance?
Topic: Capital budgeting
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
3) The corporate controller is generally responsible for which one of these functions?
A) Capital expenditures
1
, B) Cash management
C) Tax reporting
D) Financial planning
E) Credit management
Answer: C
Difficulty: 1 Easy
Section: 1.1 What is Corporate Finance?
Topic: Management organization and roles
Bloom's: Remember
6) The corporate treasurer oversees which one of these areas?
A) Financial planning
B) Cost accounting
C) Tax reporting
D) Information systems
E) Financial accounting
Answer: A
Difficulty: 1 Easy
Section: 1.1 What is Corporate Finance?
Topic: Management organization and roles
Bloom's: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
1) The treasurer and the controller of a corporation generally report to the: A)
board of directors.
B) chairman of the board.
C) chief executive officer.
D) president.
E) chief financial officer.
Answer: E
Difficulty: 1 Easy
Section: 1.1 What is Corporate Finance?
Topic: Management organization and roles
Bloom's: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
2
