1|Page
SDSU BA 323 FINANCE FINAL EXAM NEWEST
2025 ACTUAL EXAM COMPLETE QUESTIONS
AND CORRECT DETAILED ANSWERS (VERIFIED
ANSWERS) |A+ GRADED
If managers are not owners of their company, then they
are ________.
A. dealers
B. brokers
C. bondholders
D. agents - .....ANSWER ...✔✔ D. agents
Which of the following is the best measure to ensure that
management decisions are in the best interest of the
stockholders?
A. remove management's perquisites
B. tie management compensation to the level of
dividend per share
C. tie management compensation to the performance of
the company's common stock price
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D. fire managers who are inefficient - .....ANSWER
...✔✔ C. tie management compensation to the
performance of the company's common stock price
Which of the following is true of a partnership and a
corporation?
A. Income from both forms of organizations are double-
taxed.
B. In a partnership, income is taxed at the corporate
level; whereas, in a corporation, income is taxed twice.
C. In a corporation, income is taxed at the corporate
level; whereas, in a partnership, income is taxed twice.
D. In a partnership, income is exempted from tax up to
$10 million; whereas, in a corporation, income is taxed
twice. - .....ANSWER ...✔✔ B. In a partnership, income
is taxed at the corporate level; whereas, in a
corporation, income is taxed twice.
In planning and managing the requirements of a firm,
the financial manager is concerned with ________.
A. the type of financing utilized, but not the mix and
type of assets
B. the mix and type of assets, the type of financing
utilized, and analysis in order to monitor the financial
condition
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C. the mix and type of assets, but not the type of
financing utilized
D. the acquisition of fixed assets, allowing someone else
to plan the level of current assets required, and the
market value of the share - .....ANSWER ...✔✔ B. the
mix and type of assets, the type of financing utilized,
and analysis in order to monitor the financial condition
The true owner(s) of the corporation is (are) the
________.
A. creditors
B. board of directors
C. chief executive officer
D. stockholders - .....ANSWER ...✔✔ D. stockholders
Economic theories that a financial manager must ensure
for efficient business operations, include ________.
A. Porter's theory of five forces
B. supply-and-demand analysis
C. Monte Carlo simulation
D. asset pricing theory - .....ANSWER ...✔✔ B. supply-
and-demand analysis
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A financial manager must choose between three
alternative investments. Each asset is expected to
provide earnings over a three-year period as described
below. Based on the wealth maximization goal, the
financial manager would ________.
A. be indifferent between Asset 1 and Asset 2
B. choose Asset 1 because the most is paid the first year
C. choose Asset 2 because the most is paid the last year
D. choose Asset 3 because equal amounts are paid each
year - .....ANSWER ...✔✔ B. choose Asset 1 because
the most is paid the first year
Managing a firm's assets includes ________.
A. accounts payable
B. cash
C. accruals
D. notes payable - .....ANSWER ...✔✔ B. cash
The Sarbanes-Oxley Act of 2002 was passed in
response to ________.
A. false disclosures in financial reporting
B. the decline in technology stocks
C. the agency issue
SDSU BA 323 FINANCE FINAL EXAM NEWEST
2025 ACTUAL EXAM COMPLETE QUESTIONS
AND CORRECT DETAILED ANSWERS (VERIFIED
ANSWERS) |A+ GRADED
If managers are not owners of their company, then they
are ________.
A. dealers
B. brokers
C. bondholders
D. agents - .....ANSWER ...✔✔ D. agents
Which of the following is the best measure to ensure that
management decisions are in the best interest of the
stockholders?
A. remove management's perquisites
B. tie management compensation to the level of
dividend per share
C. tie management compensation to the performance of
the company's common stock price
,2|Page
D. fire managers who are inefficient - .....ANSWER
...✔✔ C. tie management compensation to the
performance of the company's common stock price
Which of the following is true of a partnership and a
corporation?
A. Income from both forms of organizations are double-
taxed.
B. In a partnership, income is taxed at the corporate
level; whereas, in a corporation, income is taxed twice.
C. In a corporation, income is taxed at the corporate
level; whereas, in a partnership, income is taxed twice.
D. In a partnership, income is exempted from tax up to
$10 million; whereas, in a corporation, income is taxed
twice. - .....ANSWER ...✔✔ B. In a partnership, income
is taxed at the corporate level; whereas, in a
corporation, income is taxed twice.
In planning and managing the requirements of a firm,
the financial manager is concerned with ________.
A. the type of financing utilized, but not the mix and
type of assets
B. the mix and type of assets, the type of financing
utilized, and analysis in order to monitor the financial
condition
,3|Page
C. the mix and type of assets, but not the type of
financing utilized
D. the acquisition of fixed assets, allowing someone else
to plan the level of current assets required, and the
market value of the share - .....ANSWER ...✔✔ B. the
mix and type of assets, the type of financing utilized,
and analysis in order to monitor the financial condition
The true owner(s) of the corporation is (are) the
________.
A. creditors
B. board of directors
C. chief executive officer
D. stockholders - .....ANSWER ...✔✔ D. stockholders
Economic theories that a financial manager must ensure
for efficient business operations, include ________.
A. Porter's theory of five forces
B. supply-and-demand analysis
C. Monte Carlo simulation
D. asset pricing theory - .....ANSWER ...✔✔ B. supply-
and-demand analysis
, 4|Page
A financial manager must choose between three
alternative investments. Each asset is expected to
provide earnings over a three-year period as described
below. Based on the wealth maximization goal, the
financial manager would ________.
A. be indifferent between Asset 1 and Asset 2
B. choose Asset 1 because the most is paid the first year
C. choose Asset 2 because the most is paid the last year
D. choose Asset 3 because equal amounts are paid each
year - .....ANSWER ...✔✔ B. choose Asset 1 because
the most is paid the first year
Managing a firm's assets includes ________.
A. accounts payable
B. cash
C. accruals
D. notes payable - .....ANSWER ...✔✔ B. cash
The Sarbanes-Oxley Act of 2002 was passed in
response to ________.
A. false disclosures in financial reporting
B. the decline in technology stocks
C. the agency issue
