FIN 601 MCQ Exam With Answers - Geneva Business School(Module 1)

1) Managerial finance ________. A) involves tasks such as budgeting, financial forecasting, cash management, and funds procurement B) involves the design and delivery of advice and financial products C) recognizes funds on an accrual basis D) devotes the majority of its attention to the collection and presentation of financial data Answer: A Diff: 1 Topic: Career Opportunities in Finance Learning Obj.: LG 1 Learning Outcome: F-01 Question Status: Previous Edition AACSB Tag: Analytic Skills 2) Finance is ________. A) the system of verifying, analyzing, and recording business transactions B) the science of production, distribution, and consumption of goods and services C) the art and science of managing money D) the art of merchandising products and services Answer: C Diff: 1 Topic: What is Finance? Learning Obj.: LG 1 Learning Outcome: F-01 Question Status: Revised AACSB Tag: Analytic Skills 3) Which of the following is a duty of a financial manager in a business firm? A) developing marketing plans B) controlling the stock price C) raising financial resources D) auditing financial records Answer: C Diff: 1 Topic: Career Opportunities in Finance Learning Obj.: LG 1 2 Learning Outcome: F-01 Question Status: Revised AACSB Tag: Analytic Skills 4) Under which of the following legal forms of organization is ownership readily transferable? A) sole proprietorships B) partnerships C) limited partnerships D) corporations Answer: D Diff: 1 Topic: Legal Forms of Business Organization Learning Obj.: LG 2 Learning Outcome: F-01 Question Status: Revised AACSB Tag: Analytic Skills 5) Which of the following forms of organizations is the easiest to form? A) sole proprietorships B) limited liability corporation C) limited partnership D) S-corporations Answer: A Diff: 1 Topic: Legal Forms of Business Organization Learning Obj.: LG 2 Learning Outcome: F-01 Question Status: Revised AACSB Tag: Analytic Skills 6) Which of the following is a strength of a corporation? A) low taxes B) limited liability C) low organization costs D) less government regulation Answer: B Diff: 1 Topic: Legal Forms of Business Organization Learning Obj.: LG 2 Learning Outcome: F-01 Question Status: New AACSB Tag: Analytic Skills 7) Which of the following legal forms of organizations is characterized by unlimited liability? A) sole proprietorship 3 B) limited partnership C) corporation D) C-corporation Answer: A Diff: 2 Topic: Legal Forms of Business Organization Learning Obj.: LG 2 Learning Outcome: F-01 Question Status: Revised AACSB Tag: Analytic Skills 8) Which of the following is the purest and most basic form of corporate ownership? A) bond B) notes C) common stock D) preferred stock Answer: C Diff: 2 Topic: Legal Forms of Business Organization Learning Obj.: LG 2 Learning Outcome: F-01 Question Status: Previous Edition AACSB Tag: Analytic Skills 9) Which of the following is true of sole proprietorships and corporations? A) It is difficult to transfer ownership of corporations compared to that of sole proprietorships. B) Income from both forms of organizations are taxed only at the corporate level. C) Both sole proprietorships and corporations are equally scrutinized and regulated by government bodies. D) In sole proprietorships, owners have unlimited liability; whereas, in corporations, owners have limited liability. Answer: D Diff: 1 Topic: Legal Forms of Business Organization Learning Obj.: LG 2 Learning Outcome: F-01 Question Status: New AACSB Tag: Analytic Skills 10) The primary goal of a financial manager is ________. A) minimizing risk B) maximizing profit C) maximizing wealth D) minimizing return Answer: C