TEST BANK FOR
m m
Corporate Finance 13th Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
m m m m m m m m
Chapter 1 m
Student name:
m
MULTIPLEmCHOICEm-
mChoosemthemonemalternativemthatmbestmcompletesmthemstatementmormanswersmthemquestion.
1) Generally,mamongmthosemwhomreport mdirectlymtomthem
aremthemtreasurermand mthemcontrollermof mamcorporation.
A) board mof mdirectors
B) chairpersonmof mthemboard
C) chief mexecutivemofficer
D) president
E) chief mfinancialmofficer
2) A mtypicalmchainmof mcommand minmamcorporationmismdescribed mbymwhichmonemof mthemfollowi
ngmstatements?
A) Theminformationmsystemsmmanagermreportsmtomthemtreasurer.
B) Themcredit mmanagermreportsmtomthemtreasurer.
C) Themcontrollermreportsmtomthemchief mexecutivemofficer.
D) Themtaxmmanagermreportsmtomthemtreasurer.
E) Themcapitalmexpendituresmmanagermreportsmtomthemcontroller.
3) Answeringmwhichmonemof mthemfollowingmquestionsminvolvesmmakingmamcapitalmbudgeti
ngmdecision?
Versionm1 1
, A) How mmuchmdebt mshould mthemfirmmborrow mfrommamparticularmlender?
B) Should mthemfirmmbuild mamnew mproductionmfacility?
C) Should mthemfirmmissuemnew mequitymtompaymformitsmgrowthmgoals?
D) How mmuchminventorymshould mthemfirmmkeepmonmhand?
E) How mmuchmcredit mshould mthemfirmmextend mtomamparticularmcustomer?
4) Whichmonemof mthemfollowingmstatementsmismaccurate?
A) Net mworkingmcapitalmequalsmcurrent massetsmplusmcurrent mliabilities.
B) Current mliabilitiesmaremdebtsmthat mmust mbemrepaid minm18mmonthsmormless.
C) Current massetsmaremassetsmwithmshort mlives,msuchmasmaccountsmreceivable.
D) Long-termmdebt mismdefined masmamresidualmclaimmonmamfirm’smassets.
E) Tangiblemassetsmaremfixed massetsmsuchmasmpatents.
5) Amongmthemtypicalmresponsibilitiesmof mthemcorporatemcontrollermis:
A) capitalmexpendituresmmanagement.
B) cashmmanagement.
C) taxmreporting.
D) financialmplanning.
E) credit mmanagement.
6) ismtypicallymthemresponsibilitymof mthemcorporatemtreasurer.
A) Financialmplanning
B) Cost maccounting
C) Taxmreporting
D) Informationmsystems
E) Financialmaccounting
7) A mfirm’sm define(s)mitsmcapitalmstructure.
Versionm1 2
, A) mixturemof mvariousmtypesmof mproductionmequipment
B) investment mselectionsmformitsmexcessmcashmreserves
C) combinationmof mcashmand mcashmequivalents
D) combinationmof maccountsmappearingmonmthemleft msidemof mitsmbalancemsheet
E) proportionsmof mfinancingmfrommdebt mand mequity
8) Themfocusmof mshort-termmfinancemismon:
A) themtimingmof mcashmflows.
B) acquiringmand msellingmfixed massets.
C) financingmlong-termmprojects.
D) capitalmbudgeting.
E) issuingmadditionalmsharesmof mcommonmstock.
9) Net mworkingmcapitalmincludes:
A) copyrights.
B) manufacturingmequipment.
C) commonmstock.
D) long-termmdebt.
E) inventory.
10) ismdefined masmplanningmand mmanagingmamfirm’smlong-termmassets.
A) Workingmcapitalmmanagement
B) Cashmmanagement
C) Cost maccountingmmanagement
D) Capitalmbudgeting
E) Capitalmstructuremmanagement
11) Anmamount mthemfirmsmowes,mwhichmit mmust mrepaymwithinmtwelvemmonths,mismcalled ma(n):
Versionm1 3
, A) current mliability.
B) long-termmdebt.
C) intangiblemasset.
D) accountsmreceivable.
E) current masset.
12) Thembusinessmentitymthat mismtypicallymthemleastmexpensivemtomformmismthe:
A) limited mliabilitymcompany.
B) joint mstockmcompany.
C) generalmpartnership.
D) limited mpartnership.
E) solemproprietorship.
13) Am ismambusinessmowned mbymamsinglemindividual.
A) corporation
B) solemproprietorship
C) generalmpartnership
D) limited mpartnership
E) limited mliabilitymcompany
14) Regardingmamsolemproprietorship,mwhichmonemof mthemfollowingmstatementsmismaccurate?
A) It mismmoremdifficult mtomformmthanmothermformsmof mbusiness.
B) Itsmbusinessmprofitsmaremtaxed mtwicemat mthemfederalmlevel.
C) Itsmbusinessmprofitsmaremtaxed mseparatelymfrommthempersonalmincomemof mthemowner.
D) Themownermmaymbemforced mtomsellmhismormhermpersonal massetsmtompaymthemcompany's
debts.
E) It mhasmanmunlimited mlifemspan.
15) Regardingmamsolemproprietorship,mwhichmonemof mthemfollowingmstatementsmismaccurate?
Versionm1 4
m m
Corporate Finance 13th Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
m m m m m m m m
Chapter 1 m
Student name:
m
MULTIPLEmCHOICEm-
mChoosemthemonemalternativemthatmbestmcompletesmthemstatementmormanswersmthemquestion.
1) Generally,mamongmthosemwhomreport mdirectlymtomthem
aremthemtreasurermand mthemcontrollermof mamcorporation.
A) board mof mdirectors
B) chairpersonmof mthemboard
C) chief mexecutivemofficer
D) president
E) chief mfinancialmofficer
2) A mtypicalmchainmof mcommand minmamcorporationmismdescribed mbymwhichmonemof mthemfollowi
ngmstatements?
A) Theminformationmsystemsmmanagermreportsmtomthemtreasurer.
B) Themcredit mmanagermreportsmtomthemtreasurer.
C) Themcontrollermreportsmtomthemchief mexecutivemofficer.
D) Themtaxmmanagermreportsmtomthemtreasurer.
E) Themcapitalmexpendituresmmanagermreportsmtomthemcontroller.
3) Answeringmwhichmonemof mthemfollowingmquestionsminvolvesmmakingmamcapitalmbudgeti
ngmdecision?
Versionm1 1
, A) How mmuchmdebt mshould mthemfirmmborrow mfrommamparticularmlender?
B) Should mthemfirmmbuild mamnew mproductionmfacility?
C) Should mthemfirmmissuemnew mequitymtompaymformitsmgrowthmgoals?
D) How mmuchminventorymshould mthemfirmmkeepmonmhand?
E) How mmuchmcredit mshould mthemfirmmextend mtomamparticularmcustomer?
4) Whichmonemof mthemfollowingmstatementsmismaccurate?
A) Net mworkingmcapitalmequalsmcurrent massetsmplusmcurrent mliabilities.
B) Current mliabilitiesmaremdebtsmthat mmust mbemrepaid minm18mmonthsmormless.
C) Current massetsmaremassetsmwithmshort mlives,msuchmasmaccountsmreceivable.
D) Long-termmdebt mismdefined masmamresidualmclaimmonmamfirm’smassets.
E) Tangiblemassetsmaremfixed massetsmsuchmasmpatents.
5) Amongmthemtypicalmresponsibilitiesmof mthemcorporatemcontrollermis:
A) capitalmexpendituresmmanagement.
B) cashmmanagement.
C) taxmreporting.
D) financialmplanning.
E) credit mmanagement.
6) ismtypicallymthemresponsibilitymof mthemcorporatemtreasurer.
A) Financialmplanning
B) Cost maccounting
C) Taxmreporting
D) Informationmsystems
E) Financialmaccounting
7) A mfirm’sm define(s)mitsmcapitalmstructure.
Versionm1 2
, A) mixturemof mvariousmtypesmof mproductionmequipment
B) investment mselectionsmformitsmexcessmcashmreserves
C) combinationmof mcashmand mcashmequivalents
D) combinationmof maccountsmappearingmonmthemleft msidemof mitsmbalancemsheet
E) proportionsmof mfinancingmfrommdebt mand mequity
8) Themfocusmof mshort-termmfinancemismon:
A) themtimingmof mcashmflows.
B) acquiringmand msellingmfixed massets.
C) financingmlong-termmprojects.
D) capitalmbudgeting.
E) issuingmadditionalmsharesmof mcommonmstock.
9) Net mworkingmcapitalmincludes:
A) copyrights.
B) manufacturingmequipment.
C) commonmstock.
D) long-termmdebt.
E) inventory.
10) ismdefined masmplanningmand mmanagingmamfirm’smlong-termmassets.
A) Workingmcapitalmmanagement
B) Cashmmanagement
C) Cost maccountingmmanagement
D) Capitalmbudgeting
E) Capitalmstructuremmanagement
11) Anmamount mthemfirmsmowes,mwhichmit mmust mrepaymwithinmtwelvemmonths,mismcalled ma(n):
Versionm1 3
, A) current mliability.
B) long-termmdebt.
C) intangiblemasset.
D) accountsmreceivable.
E) current masset.
12) Thembusinessmentitymthat mismtypicallymthemleastmexpensivemtomformmismthe:
A) limited mliabilitymcompany.
B) joint mstockmcompany.
C) generalmpartnership.
D) limited mpartnership.
E) solemproprietorship.
13) Am ismambusinessmowned mbymamsinglemindividual.
A) corporation
B) solemproprietorship
C) generalmpartnership
D) limited mpartnership
E) limited mliabilitymcompany
14) Regardingmamsolemproprietorship,mwhichmonemof mthemfollowingmstatementsmismaccurate?
A) It mismmoremdifficult mtomformmthanmothermformsmof mbusiness.
B) Itsmbusinessmprofitsmaremtaxed mtwicemat mthemfederalmlevel.
C) Itsmbusinessmprofitsmaremtaxed mseparatelymfrommthempersonalmincomemof mthemowner.
D) Themownermmaymbemforced mtomsellmhismormhermpersonal massetsmtompaymthemcompany's
debts.
E) It mhasmanmunlimited mlifemspan.
15) Regardingmamsolemproprietorship,mwhichmonemof mthemfollowingmstatementsmismaccurate?
Versionm1 4
