財務(wù)管理Chap001習(xí)題之令狐文艷創(chuàng)作

第第頁財務(wù)管理Chap001習(xí)題之令狐文艷創(chuàng)作令狐文艷

令狐文艷Chapter01

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IntroductiontoCorporateFinanceMultipleChoiceQuestions

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1.Thepersongenerallydirectlyresponsibleforoverseeingtheta*management,costaccounting,financialaccounting,andinformationsystemfunctionsisthe:

A.treasurer.

B.director.

C.controller.

D.chairmanoftheboard.

E.chiefe*ecutiveofficer.

2.Thepersongenerallydirectlyresponsibleforoverseeingthecashandcreditfunctions,financialplanning,andcapitale*pendituresisthe:

A.treasurer.

B.director.

C.controller.

D.chairmanoftheboard.

E.chiefoperationsofficer.

3.Theprocessofplanningandmanagingafirmslong-terminvestmentsiscalled:

A.workingcapitalmanagement.

B.financialdepreciation.

C.agencycostanalysis.

D.capitalbudgeting.

E.capitalstructure.

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4.Themi*tureofdebtandequityusedbyafirmtofinanceitsoperationsiscalled:

A.workingcapitalmanagement.

B.financialdepreciation.

C.costanalysis.

D.capitalbudgeting.

E.capitalstructure.

5.Themanagementofafirmsshort-termassetsandliabilitiesiscalled:

A.workingcapitalmanagement.

B.debtmanagement.

C.equitymanagement.

D.capitalbudgeting.

E.capitalstructure.

6.Abusinessownedbyasingleindividualiscalleda:

A.corporation.

B.soleproprietorship.

C.generalpartnership.

D.limitedpartnership.

E.limitedliabilitycompany.

7.Abusinessformedbytwoormoreindividualswhoeachhaveunlimitedliabilityforbusinessdebtsiscalleda:

A.corporation.

B.soleproprietorship.

C.generalpartnership.

D.limitedpartnership.

E.limitedliabilitycompany.

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8.Thedivisionofprofitsandlossesamongthemembersofapartnershipisformalizedinthe:

A.indemnityclause.

B.indenturecontract.

C.statementofpurpose.

D.partnershipagreement.

E.groupcharter.

9.Abusinesscreatedasadistinctlegalentitycomposedofoneormoreindividualsorentitiesiscalleda:

A.corporation.

B.soleproprietorship.

C.generalpartnership.

D.limitedpartnership.

E.unlimitedliabilitycompany.

10.Thecorporatedocumentthatsetsforththebusinesspurposeofafirmisthe:

A.indenturecontract.

B.stateta*agreement.

C.corporatebylaws.

D.debtcharter.

E.articlesofincorporation.

11.Therulesbywhichcorporationsgovernthemselvesarecalled:

A.indentureprovisions.

B.indemnityprovisions.

C.charteragreements.

D.bylaws.

E.articlesofincorporation.

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12.Abusinessentityoperatedandta*edlikeapartnership,butwithlimitedliabilityfortheowners,iscalleda:

A.limitedliabilitycompany.

B.generalpartnership.

C.limitedproprietorship.

D.soleproprietorship.

E.corporation.

13.Theprimarygoaloffinancialmanagementisto:

A.ma*imizecurrentdividendspershareofthee*istingstock.

B.ma*imizethecurrentvaluepershareofthee*istingstock.

C.avoidfinancialdistress.

D.minimizeoperationalcostsandma*imizefirmefficiency.

E.maintainsteadygrowthinbothsalesandnetearnings.

14.Aconflictofinterestbetweenthestockholdersandmanagementofafirmiscalled:

A.stockholdersliability.

B.corporatebreakdown.

C.theagencyproblem.

D.corporateactivism.

E.legalliability.

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15.Agencycostsreferto:

A.thetotaldividendspaidtostockholdersoverthelifetimeofafirm.

B.thecoststhatresultfromdefaultandbankruptcyofafirm.

C.corporateincomesubjecttodoubleta*ation.

D.thecostsofanyconflictsofinterestbetweenstockholdersandmanagement.

E.thetotalinterestpaidtocreditorsoverthelifetimeofthefirm.

16.Astakeholderis:

A.anypersonorentitythatownssharesofstockofacorporation.

B.anypersonorentitythathasvotingrightsbasedonstockownershipofacorporation.

C.apersonwhoinitiallystartedafirmandcurrentlyhasmanagementcontroloverthecashflowsofthefirmduetohis/hercurrentownershipofcompanystock.

D.acreditortowhomthefirmcurrentlyowesmoneyandwhoconsequentlyhasaclaimonthecashflowsofthefirm.

E.anypersonorentityotherthanastockholderorcreditorwhopotentiallyhasaclaimonthecashflowsofthefirm.

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17.TheSarbanesO*leyActof2022isintendedto:

A.protectfinancialmanagersfrominvestors.

B.nothaveanyeffectonforeigncompanies.

C.reducecorporaterevenues.

D.protectinvestorsfromcorporateabuses.

E.decreaseauditcostsforU.S.firms.

18.Thetreasurerandthecontrollerofacorporationgenerallyreporttothe:

A.boardofdirectors.

B.chairmanoftheboard.

C.chiefe*ecutiveofficer.

D.president.

E.chieffinancialofficer.

19.Whichoneofthefollowingstatementsiscorrectconcerningtheorganizationalstructureofacorporation?

A.Thevicepresidentoffinancereportstothechairmanoftheboard.

B.Thechiefe*ecutiveofficerreportstotheboardofdirectors.

C.Thecontrollerreportstothepresident.

D.Thetreasurerreportstothechiefe*ecutiveofficer.

E.Thechiefoperationsofficerreportstothevicepresidentofproduction.

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20.Whichoneofthefollowingisacapitalbudgetingdecision?

A.determininghowmuchdebtshouldbeborrowedfromaparticularlender

B.decidingwhetherornottoopenanewstore

C.decidingwhentorepayalong-termdebt

D.determininghowmuchinventorytokeeponhand

E.determininghowmuchmoneyshouldbekeptinthecheckingaccount

21.TheSarbanesO*leyActwasenactedin:

A.1952.

B.1967.

C.1998.

D.2022.

E.2022.

22.SincetheimplementationofSarbanes-O*ley,thecostofgoingpublicintheUnitedStateshas:

A.increased.

B.decreased.

C.remainedaboutthesame.

D.beenerratic,butovertimehasdecreased.

E.ItisimpossibletotellsinceSarbanes-O*leycompliancedoesnotinvolvedirectcosttothefirm.

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23.Workingcapitalmanagementincludesdecisionsconcerningwhichofthefollowing?

I.accountspayable

II.long-termdebt

III.accountsreceivable

IV.inventory

A.IandIIonly

B.IandIIIonly

C.IIandIVonly

D.I,II,andIIIonly

E.I,III,andIVonly

24.Workingcapitalmanagement:

A.ensuresthatsufficientequipmentisavailabletoproducetheamountofproductdesiredonadailybasis.

B.ensuresthatlong-termdebtisacquiredatthelowestpossiblecost.

C.ensuresthatdividendsarepaidtoallstockholdersonanannualbasis.

D.balancestheamountofcompanydebttotheamountofavailableequity.

E.isconcernedwiththeupperportionofthebalancesheet.

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25.Whichoneofthefollowingstatementsconcerning

asoleproprietorshipiscorrect?

A.Asoleproprietorshipistheleastcommonformofbusinessownership.

B.Theprofitsofasoleproprietorshipareta*edtwice.

C.Theownersofasoleproprietorshipshareprofitsasestablishedbythepartnershipagreement.

D.Theownerofasoleproprietorshipmaybeforcedtosellhis/herpersonalassetstopaycompanydebts.

E.Asoleproprietorshipisoftenstructuredasalimitedliabilitycompany.

26.Whichoneofthefollowingstatementsconcerning

asoleproprietorshipiscorrect?

A.Thelifeofthefirmislimitedtothelifespanoftheowner.

B.Theownercangenerallyraiselargesumsofcapitalquiteeasily.

C.Theownershipofthefirmiseasytotransfertoanotherindividual.

D.Thecompanymustpayseparateta*esfromthosepaidbytheowner.

E.Thelegalcoststoformasoleproprietorshiparequitesubstantial.

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27.Whichoneofthefollowingbestdescribestheprimaryadvantageofbeingalimitedpartnerratherthanageneralpartner?

A.entitlementtoalargerportionofthepartnershipsincome

B.abilitytomanagetheday-to-dayaffairsofthebusiness

C.nopotentialfinancialloss

D.greatermanagementresponsibility

E.liabilityforfirmdebtslimitedtothecapitalinvested

28.Ageneralpartner:

A.haslesslegalliabilitythanalimitedpartner.

B.hasmoremanagementresponsibilitythanalimitedpartner.

C.facesdoubleta*ationwhereasalimitedpartnerdoesnot.

D.cannotlosemorethantheamountofhis/herequityinvestment.

E.isthetermappliedonlytocorporationswhichinvestinpartnerships.

29.Apartnership:

A.ista*edthesameasacorporation.

B.agreementdefineswhetherthebusinessincome

willbeta*edlikeapartnershiporacorporation.

C.terminatesatthedeathofanygeneralpartner.

D.haslessofanabilitytoraisecapitalthanaproprietorship.

E.allowsforeasytransferofinterestfromonegeneralpartnertoanother.

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30.Whichofthefollowingaredisadvantagesofapartnership?

I.limitedlifeofthefirm

II.personalliabilityforfirmdebt

III.greaterabilitytoraisecapitalthanasoleproprietorship

IV.lackofabilitytotransferpartnershipinterest

A.IandIIonly

B.IIIandIVonly

C.IIandIIIonly

D.I,II,andIVonly

E.I,III,andIVonly

31.Whichofthefollowingareadvantagesofthecorporateformofbusinessownership?

I.limitedliabilityforfirmdebt

II.doubleta*ation

III.abilitytoraisecapital

IV.unlimitedfirmlife

A.IandIIonly

B.IIIandIVonly

C.I,II,andIIIonly

D.II,III,andIVonly

E.I,III,andIVonly

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32.Whichoneofthefollowingstatementsiscorrectconcerningcorporations?

A.Thelargestfirmsareusuallycorporations.

B.Themajorityoffirmsarecorporations.

C.Thestockholdersareusuallythemanagersofacorporation.

D.Theabilityofacorporationtoraisecapitalisquitelimited.

E.Theincomeofacorporationista*edaspersonalincomeofthestockholders.

33.Whichoneofthefollowingstatementsiscorrect?

A.Bothpartnershipsandcorporationsincurdoubleta*ation.

B.Bothsoleproprietorshipsandpartnershipsareta*edinasimilarfashion.

C.Partnershipsarethemostcomplicatedtypeofbusinesstoform.

D.Bothpartnershipsandcorporationshavelimitedliabilityforgeneralpartnersandshareholders.

E.Alltypesofbusinessformationshavelimitedlives.

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34.Thearticlesofincorporation:

A.canbeusedtoremovecompanymanagement.

B.areamendedannuallybythecompanystockholders.

C.setforththenumberofsharesofstockthatcanbeissued.

D.setforththerulesbywhichthecorporationregulatesitse*istence.

E.cansetforththeconditionsunderwhichthefirmcanavoiddoubleta*ation.

35.Thebylaws:

A.establishthenameofthecorporation.

B.areruleswhichapplyonlytolimitedliabilitycompanies.

C.setforththepurposeofthefirm.

D.mandatetheprocedureforelectingcorporatedirectors.

E.setforththeprocedurebywhichthestockholderselecttheseniormanagersofthefirm.

36.Theownersofalimitedliabilitycompanyprefer:

A.beingta*edlikeacorporation.

B.havingliabilitye*posuresimilartothatofasoleproprietor.

C.beingta*edpersonallyonallbusinessincome.

D.havingliabilitye*posuresimilartothatofageneralpartner.

E.beingta*edlikeacorporationwithliability

likeapartnership.

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37.Whichoneofthefollowingbusinesstypesisbestsuitedtoraisinglargeamountsofcapital?

A.soleproprietorship

B.limitedliabilitycompany

C.corporation

D.generalpartnership

E.limitedpartnership

38.Whichtypeofbusinessorganizationhasalltherespectiverightsandprivilegesofalegalperson?

A.soleproprietorship

B.generalpartnership

C.limitedpartnership

D.corporation

E.limitedliabilitycompany

39.Financialmanagersshouldstrivetoma*imizethecurrentvaluepershareofthee*istingstockbecause:

A.doingsoguaranteesthecompanywillgrowinsizeatthema*imumpossiblerate.

B.doingsoincreasesthesalariesofalltheemployees.

C.thecurrentstockholdersaretheownersofthecorporation.

D.doingsomeansthefirmisgrowinginsizefasterthanitscompetitors.

E.themanagersoftenreceivesharesofstockaspartoftheircompensation.

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40.Thedecisionsmadebyfinancialmanagersshouldallbeoneswhichincreasethe:

A.sizeofthefirm.

B.growthrateofthefirm.

C.marketabilityofthemanagers.

D.marketvalueofthee*istingownersequity.

E.financialdistressofthefirm.

41.Whichoneofthefollowingactionsbya

financialmanagercreatesanagencyproblem?

A.refusingtoborrowmoneywhendoingsowillcreatelossesforthefirm

B.refusingtolowersellingpricesifdoingsowillreducethenetprofits

C.agreeingtoe*pandthecompanyatthee*penseofstockholdersvalue

D.agreeingtopaybonusesbasedonthebookvalueofthecompanystock

E.increasingcurrentcostsinordertoincreasethemarketvalueofthestockholdersequity

42.Whichofthefollowinghelpconvincemanagerstoworkinthebestinterestofthestockholders?

I.compensationbasedonthevalueofthestock

II.stockoptionplans

III.threatofapro*yfight

IV.threatofconversiontoapartnership

A.IandIIonly

B.IIandIIIonly

C.I,IIandIIIonly

D.IandIIIonly

E.I,II,III,andIV

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43.Whichformofbusinessstructurefacesthegreatestagencyproblems?

A.soleproprietorship

B.generalpartnership

C.limitedpartnership

D.corporation

E.limitedliabilitycompany

44.Apro*yfightoccurswhen:

A.theboardsolicitsrenewalofcurrentmembers.

B.agroupsolicitspro*iestoreplacetheboardofdirectors.

C.acompetitorofferstoselltheirownershipinthefirm.

D.thefirmfilesforbankruptcy.

E.thefirmisdeclaredinsolvent.

45.Whichoneofthefollowingpartiesisconsidered

astakeholderofafirm?

A.employee

B.short-termcreditor

C.long-termcreditor

D.preferredstockholder

E.commonstockholder

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46.WhichofthefollowingarekeyrequirementsoftheSarbanes-O*leyAct?

I.Officersofthecorporationmustreviewandsignannualreports.

II.Officersofthecorporationmustnowownmorethan5%ofthefirmsstock.

III.Annualreportsmustlistdeficienciesininternalcontrols

IV.AnnualreportsmustbefiledwiththeSECwithin

30daysofyearend.

A.Ionly

B.IIonly

C.IandIIIonly

D.IIandIIIonly

E.IIandIVonly

47.Insidertradingis:

A.legal.

B.illegal.

C.impossibletohaveinourefficientmarket.

D.discouraged,butlegal.

E.listonlythesecuritiesofthelargestfirms.

48.Soleproprietorshipsarepredominantlystartedbecause:

A.theyareeasilyandcheaplysetup.

B.theproprietorshiplifeislimitedtothebusinessownerslife.

C.allbusinessta*esarepaidasindividualta*.

D.Alloftheabove.

E.Noneoftheabove.

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49.Managersareencouragedtoactinshareholdersinterestsby:

A.shareholderelectionofaboardofdirectorswhoselectmanagement.

B.thethreatofatakeoverbyanotherfirm.

C.compensationcontractsthattiecompensation