2022年茲維博迪金融學(xué)第二版試題庫TB

1、Chapter One Financial EconomicsThis chapter contains 48 multiple choice questions, 20 short problems and 5 longer problems.Multiple ChoiceThe primary goal of corporate management is to _ shareholder wealth.minimizemaximizeleveragemitigateAnswer: (b)A _ stock market imposes _ discipline on managers t

2、o take actions to maximize the market value of the firms petitive, strongdispersed, weakmature, nodispersed, strongAnswer: (a)3. The _ form is especially well suited to the separation of ownership and management of firms because it allows relatively frequent changes in owners by share transfer witho

3、ut affecting the operations of the firm.corporatesole proprietorshippartnershiphouseholdAnswer: (a)4. _ is anything that has economic value.A partnershipAn assetA balance sheetAn income statementAnswer: (b)5. A households wealth or net worth is measured by the value of its _ minus its _.liabilities;

4、 assetsassets; liabilitiesstocks; bondsbonds; liabilitiesAnswer: (b)6. The branch of finance dealing with financial decisions of firms is called _ or _.investments; international financemarkets; institutionsbusiness finance; institutionsbusiness finance; corporate financeAnswer: (d)7. Bonds promise

5、_ cash payments, while stocks pay the _ value left over after all other claimants have been paid.variable; residualresidual; fixedfixed; residualfixed; variableAnswer: (c)8. The day-to-day financial affairs of the firm are usually referred to as _.working capital managementcapital structurecapital b

6、udgetingstrategic planningAnswer: (a)9. A disadvantage of the sole proprietorship is the fact that the sole proprietor has _.limited liability for the debts of the firmunlimited liability for the debts of the firmexpensive costs to establish the firmlimited authority over the day-to-day business dec

7、isions of the firmAnswer: (b)10. In the U.S. corporations with concentrated ownership are called _ and corporations with broadly dispersed ownership are called _.private corporations; public corporationspublic corporations; private corporationspublic corporations; monopoliesprivate corporations; sta

8、te owned corporationsAnswer: (a)11. Billy owns a house worth $350,000 and has a $55,000 bank account. Billy owes $270,000 to the bank on a home mortgage loan and has a $12,000 credit card debt outstanding. Calculate Billys net worth.$135,000$123,000$497,000$37,000Answer: (b)12. Marlowe owns a house

9、worth $150,000, a car worth $25,000 and has an $18,000 bank account. Marlowe owes $135,000 to the bank on a home mortgage loan, $18,000 on the car loan and has an $18,000 credit card debt outstanding. Calculate Marlowes net worth.$58,000$123,000$22,000$37,000Answer: (c)13. An advantage of the corpor

10、ate form of ownership is _.no liabilityunlimited liabilitylimited liabilityCEO liabilityAnswer: (c)14. In the corporate form, the separated structure creates the potential for _ between owners and managers.a conflict of interestincreased transactional costsstability in relationsnone of the aboveAnsw

11、er: (a)15. All of the following are reasons for having a separation of management and ownership of the firm except:the going concern effect favors the separated structureprofessional managers may be found who possess a superior ability to run the businessit prevents the possibility of a conflict of

12、interest between the owners and managementit allows for savings in the cost of information gatheringAnswer: (c)16. _ involves the evaluation of costs and benefits spread out over time, and it is largely a financial decision-making process.Stock valuationBond valuationInventory costingStrategic plann

13、ingAnswer: (d)17. Shareholder wealth maximization depends on all of the following except:production technologymarket interest ratesrisk aversionmarket risk premiumsAnswer: (c)18. A problem with using the profit maximization criterion is _.deciding which periods profit is to be maximizedthe definitio

14、n of maximize profits is ambiguousthe failure to consider riskall of the above Answer: (d) 19. The existence of a well functioning stock market facilitates the efficient separation of the ownership and management of firms, since stock prices can be substituted for external information about _.the fi

15、rms production technologythe wealth, preferences, and other investment opportunities of the ownersthe historic costs of the firms infrastructurethe firms ability to meet its projected goalsAnswer: (b)20. One place to look for a statement of the goals of a corporations top managers is the _.balance s

16、heetincome statementannual reportbankruptcy filingAnswer: (c)21. In the absence of a stock market, managers would require information that is _ to obtain.costly if not impossible costlessreadily availabletime-consuming but inexpensiveAnswer: (a)22. Managements task is made much easier when it can ob

17、serve the _ of its own and other firms shares.book pricesmarket priceshistorical pricessecurity pricesAnswer: (b)23. _ are entitled to a share of any of the distributions from the corporation such as cash dividends.Sole proprietorsGeneral partnersProfessional managersShareholdersAnswer: (d)24. _ is

18、the founder of modern portfolio theory.Harry MarkowitzMerton MillerWilliam SharpeBill GatesAnswer: (a)25. In Germany, public corporations are identifiable by _ after the company name, whereas private companies are denoted by _.PLC, Inc.GmbH, AGAG, GmbHSpA, GmbHAnswer: (c)26. In the United Kingdom, p

19、ublic corporations are identifiable by _ after the company name, whereas private companies are denoted by _.Inc, PLCLTD, PLCAG, GmbHPLC, LTDAnswer: (d)27. Shareholders elect _ who in turn select _ to run the business.a board of directors; a treasurera board of directors; managersmanagers; a board of

20、 directorsa board of directors; accountantsAnswer: (b)28. In a competitive stock market, _ offer(s) another important mechanism for aligning the incentives of managers with those of shareholders.takeoversincreased taxesliquidationincreased liabilityAnswer: (a)29. If a raider is interested in making

21、a profit through the takeover of a prospective firm, the only expenses that need be incurred are _.the cost of identifying a mismanaged firmthe cost of acquiring the firms sharesphysical capitalboth (a) and (b)Answer: (d)30. The cost of identifying a mismanaged firm can be low if the raider is which

22、 of the following:a suppliera customera competitorall of the aboveAnswer: (d)31. Takeover mechanisms can most effectively be reduced by _.directives from the board of directors media interventiongovernment policiespublic disapprovalAnswer: (c)32. The chief financial officer (CFO) of a corporation no

23、rmally reports to the _ of the company.controllertreasurerchief executive officerchairman of the board of directorsAnswer: (c)33. All of the following departments typically report to the chief financial officer (CFO) except:marketingfinancial planningtreasurycontrolAnswer: (a)34. The treasurers job

24、includes managing all of the following except:the firms exposure to currency and interest rate risksthe tax departmentrelations with the external investment communitythe analysis of proposed mergers and acquisitionsAnswer: (d)35. The activities of the vice president for financial planning include al

25、l of the following except:analyzing proposed mergersanalyzing proposed spin-offspreparing internal reports comparing planned and actual costsanalyzing major capital expendituresAnswer: (c)Which of the following statements is most correct?The shareholders of a corporation elect managers who in turn s

26、elect a board of directors to run the business.Partnerships do not pay corporate tax.A disadvantage of the corporation is unlimited liability.The government is powerless to discourage corporate takeovers.Answer: (b)For a typical firm, which of the following statements is most correct?The CFO has thr

27、ee departments reporting to him: financial planning, treasury and control.The treasurer oversees the accounting and auditing activities of the firm.The controller has responsibility for managing the financing activities of the firm and for working capital management.The CEO is a senior vice presiden

28、t with responsibility for all the financial functions in the firm.Answer: (a)Which of the following are financial decisions a firm has to make?financing decisionscapital budgeting decisionsworking capital decisionsall of the aboveAnswer: (d)The controllers job includes responsibility for _.relations

29、 with the external investment communitypreparation of financial statements for use by shareholders, creditors and regulatory authoritiesanalysis of proposed mergers, acquisitions and spin-offsall of the aboveAnswer: (b)The basic unit of analysis in capital budgeting is the _.financing projectinvestm

30、ent projectstrategic projectvariable projectAnswer: (b)The steps involved in any capital budgeting process include:evaluating projectsdeciding which projects to undertakeidentifying ideas for new investment projectsall of the aboveAnswer: (d)Preferred stock, bonds, and convertible securities are als

31、o known as _.nonmarketable claimsstandardized securitiesvariable securitiescovenantsAnswer: (b)The basic unit of analysis in capital structure decisions is the _.firm as a wholeinvestment projectfirms personnelfinancial systemAnswer: (a)Which one of the following correctly orders the steps involved

32、in capital structure decisions?determining a feasible financing plan; identifying new ideas for investment projectsdetermining the optimal financing mix; determining a feasible financing planidentifying ideas for investment projects; determining the optimal financing mixdetermining a feasible financ

33、ing plan; determining the optimal financing mixAnswer: (d)Which of the following is not a financial function of a corporation?investor relationstax administrationprovision of capitalregulatory legislationAnswer: (d)Which of the following functions may be categorized as administration of funds?custod

34、ial responsibilitiestax administrationinternal auditingall of the aboveAnswer: (a)Investor relations includes:government reportingestablishment and maintenance of communications with company stockholdersrelations with taxing agenciesconsultation with and advice to other corporate executivesAnswer: (

35、b)Oscar owns a boat worth $2 million, a house worth $5.5.million and has $900,000 in a bank account. Oscar owes $1.1 million to the bank on the boat loan, $2 million on the home loan and has $20,000 credit card debt. Calculate Oscars net worth.$3.12 million$5.28 million$7.28 million$8.4 millionAnswe

36、r: (b)Short ProblemsGive a brief definition of the financial system.Answer: A financial system is defined as the set of markets and other institutions used for financial contracting and the exchange of assets and risks.List the markets that the financial system likely includes.Answer: A financial sy

37、stem includes the markets for stocks, bonds and other financial instruments, financial intermediaries, financial service firms and the regulatory bodies that govern all of these institutions.Briefly describe the distinction between physical capital and financial capital.Answer: Physical capital incl

38、udes items such as buildings, machinery and other intermediate products used in the production process. Financial capital, however, includes stocks, bonds and loans used to finance the acquisition of physical capital.4. Give a brief description of the wide range of financial instruments and claims a

39、 firm can issue.Answer: These include common stock, preferred stock, bonds and convertible securities (standardized securities that can be traded in organized markets). Financial instruments and claims can also include nonmarketable claims such as bank loans, employee stock options, leases and pensi

40、on liabilities.Siggy owns a house worth $200,000, a car worth $25,000 and has an $18,000 bank account. He also has furniture worth $4,000 and jewelry worth $10,000. However, Siggy owes $145,000 to the bank on a home mortgage loan, $17,000 on the car loan, $40,000 on student loans and has an $16,000

41、credit card debt outstanding. Calculate Siggys net worth.Answer: Net Worth = Total Assets Total Liabilities = ($200,000 + $25,000 + $18,000 + $4,000 + $10,000) ($145,000 + $17,000 + $40,000 + $16,000) = $39,000Briefly list the problems associated with profit maximization as the chief goal of corpora

42、te managers.Answer: The profit-maximization criterion has two problems associated with it. The first is that it is difficult to determine which periods profit is to be maximized if the production process requires many periods. Secondly, if either future revenues or expenses are uncertain, then what

43、exactly is the meaning of maximize profits if profits are described by a probability distribution?Kecia owns a house worth $220,000, a car worth $20,000 and has a $13,000 bank account. She also has furniture worth $8,000. However, Kecia owes $165,000 to the bank on a home mortgage loan, $17,000 on t

44、he car loan, $50,000 on student loans and has an $18,000 credit card debt outstanding. Calculate Kecias net worth.Answer: Net Worth = Total Assets Total Liabilities = ($220,000 + $20,000 + $13,000 + $8,000) ($165,000 + $17,000 + $50,000 + $18,000)= $261,000 - $250,000= $11,000Give an example of a po

45、tential conflict of interest that can arise between owners and managers of a firm.Answer: Managers being concerned with their own personal welfare may lead to concern about job security in the long run. This concern about long run survival may cause managers to limit the risk incurred by the firm an

46、d make other decisions not with the objective of shareholder wealth maximization.What use does the existence of a stock market serve to the manager of a firm?Answer: Observing its own and other firms market price of shares helps it make decisions about maximizing the firms value to its shareholders.

47、 If there was not a stock market, then managers would be required to obtain information that is costly, if not impossible, to obtain. This includes the wealth, preferences and other investment opportunities of the owners. Outline the role of the takeover in aligning the incentives of managers with t

48、hose of shareholders.Answer: The threat of a takeover provides a strong incentive for current managers to act in the interests of the firms current shareholders by maximizing market value. If managers fail to maximize the market value of the firms shares, the firm will be vulnerable to a takeover in

49、 which the managers may lose their jobs.Outline the role of the chief financial officer (CFO) in a corporation.Answer: The CFO is a senior vice president with responsibility for all the financial functions in the firm and reports directly to the CEO. Three departments report to the CFO: financial pl

50、anning, treasury, and control.Discuss the role of the treasurer in a corporation.Answer: The treasurer has responsibility for managing the financing activities of the firm and for working capital management. The treasurer is responsible for managing relations with the external investor community, ma

51、naging the firms exposure to currency and interest rate risks, and managing the tax department.13. Discuss the tasks performed by the controller of a corporation.Answer: The controller oversees the accounting and auditing tasks of the firm. The controller is responsible for the preparation of intern

52、al reports comparing planned and actual costs, revenues, and profits from the corporations various business units. The controller will also be involved with preparation of financial statements for use by shareholders, creditors and regulatory authorities. Discuss why voting rights for shareholders a

53、re not adequate to compel managers to act in the best interests of the shareholders.Answer: Because a major benefit of the separated structure is that the owners can remain relatively uninformed about the operations of the firm, it is not apparent how these owners could know whether their firm is be

54、ing mismanaged. The value of voting rights is further cast into doubt if ownership of the firm is widely dispersed. If that is the situation, then the holdings of any single owner are likely to be so small that he or she would not incur the expense to become informed and to convey this information t

55、o the other owners. Is it possible for government to reduce the effectiveness of the takeover mechanism?Answer: Yes. It is possible for government policy to prevent the formation of monopolies in various product markets as in the case of the United States Department of Justice, which can take legal

56、action under the antitrust laws to prevent mergers and acquisitions that might reduce competition.In terms of the financial functions of a corporation, what responsibilities do administration of funds entail?Answer: Management of cash; maintenance of banking arrangements; receipt, custody and disbur

57、sement of the companys monies and securities; credit and collection management; management of pension funds; management of investments and custodial responsibilities.Discuss the liability a partnership faces.Answer: Unless otherwise specified, all partners have unlimited liability as in the sole pro

58、prietorship. However, it is possible to limit the liability for some partners called limited partners. At least one of the partners, called the general partner, has unlimited liability for the debts of the firm.Describe the advantages of the corporate form of business organization.Answer: The corpor

59、ate form of ownership has the advantage that ownership shares can usually be transferred without disrupting the business. Limited liability is also another advantage of the corporate form. In this case, if the corporation fails to pay its debts, the creditors can seize the assets of the corporation

60、but have no recourse to the personal assets of the shareholders.Briefly outline the process of capital budgeting.Answer: The process of capital budgeting includes identifying ideas for new investment projects, evaluating them, deciding which ones to undertake, and then implementing them.Briefly disc