Introduction To Corporate Finance

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Questions Bank

Introduction to Corporate Finance
Financial Statements,Taxes,and Cash Flow
Working With Financial Statements
Long-Term Financial Planning and Growth
Introduction to Valuation: The Time Value of Money
Discounted Cash Flow Valuation
Interest Rates and Bond Valuation
Stock Valuation
Net Present Value and Other Investment Criteria
Making Capital Investment Decisions
Project Analysis and Evaluation
Some Lessons From Capital Market History
Return,Risk,and the Security Market Line
Cost of Capital
Raising Capital
Financial Leverage and Capital Structure Policy
Dividends and Payout Policy
Short-Term Finance and Planning
Cash and Liquidity Management
Credit and Inventory Management
International Corporate Finance
Behavioral Finance: Implications for Financial Management
Enterprise Risk Management
Options and Corporate Finance
Option Valuation
Mergers and Acquisitions
Leasing

All Questions

Question 1

Free

Multiple Choice

Which one of the following terms is defined as the management of a firm's long-term investments?

Choose correct answer/s

working capital management

financial allocation

agency cost analysis

capital budgeting

capital structure

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Question 2

Free

Multiple Choice

Which one of the following terms is defined as the mixture of a firm's debt and equity financing?

Choose correct answer/s

working capital management

cash management

cost analysis

capital budgeting

capital structure

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Question 3

Free

Multiple Choice

Which one of the following is defined as a firm's short-term assets and its short-term liabilities?

Choose correct answer/s

working capital

debt

investment capital

net capital

capital structure

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Question 4

Free

Multiple Choice

A business owned by a solitary individual who has unlimited liability for its debt is called a:

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corporation.

sole proprietorship.

general partnership.

limited partnership.

limited liability company.

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Question 5

Free

Multiple Choice

A business formed by two or more individuals who each have unlimited liability for all of the firm's business debts is called a:

Choose correct answer/s

corporation.

sole proprietorship.

general partnership.

limited partnership.

limited liability company.

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Question 6

Multiple Choice

A business partner whose potential financial loss in the partnership will not exceed his or her investment in that partnership is called a:

Choose correct answer/s

generally partner.

sole proprietor.

limited partner.

corporate shareholder.

zero partner.

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Question 7

Multiple Choice

A business created as a distinct legal entity and treated as a legal "person" is called a:

Choose correct answer/s

corporation.

sole proprietorship.

general partnership.

limited partnership.

unlimited liability company.

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Question 8

Multiple Choice

Which one of the following terms is defined as a conflict of interest between the corporate shareholders and the corporate managers?

Choose correct answer/s

articles of incorporation

corporate breakdown

agency problem

bylaws

legal liability

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Question 9

Multiple Choice

A stakeholder is:

Choose correct answer/s

a person who owns shares of stock.

any person who has voting rights based on stock ownership of a corporation.

a person who initially founded a firm and currently has management control over that firm.

a creditor to whom a firm currently owes money.

any person or entity other than a stockholder or creditor who potentially has a claim on the cash flows of a firm.

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Question 10

Multiple Choice

Which of the following questions are addressed by financial managers?
I)How should a product be marketed?
II)Should customers be given 30 or 45 days to pay for their credit purchases?
III)Should the firm borrow more money?
IV)Should the firm acquire new equipment?

Choose correct answer/s

I and IV only

II and III only

I, II, and III only

II, III, and IV only

I, II, III, and IV

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Question 11

Multiple Choice

Which one of the following functions should be the responsibility of the controller rather than the treasurer?

Choose correct answer/s

daily cash deposit

income tax returns

equipment purchase analysis

customer credit approval

payment to a vendor

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Question 12

Multiple Choice

The controller of a corporation generally reports directly to the:

Choose correct answer/s

board of directors.

chairman of the board.

chief executive officer.

president.

vice president of finance.

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Question 13

Multiple Choice

Which one of the following correctly defines the upward chain of command in a typical corporate organizational structure?

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The vice president of finance reports to the chairman of the board.

The chief executive officer reports to president.

The controller reports to the president.

The treasurer reports to the vice president of finance.

The chief operations officer reports to the vice president of production.

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Question 14

Multiple Choice

Which one of the following is a capital budgeting decision?

Choose correct answer/s

determining how many shares of stock to issue

deciding whether or not to purchase a new machine for the production line

deciding how to refinance a debt issue that is maturing

determining how much inventory to keep on hand

determining how much money should be kept in the checking account

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Question 15

Multiple Choice

Which of the following should a financial manager consider when analyzing a capital budgeting project?
I)project start up costs
II)timing of all projected cash flows
III)dependability of future cash flows
IV)dollar amount of each projected cash flow

Choose correct answer/s

I and IV only

I, II, and IV only

I, II, and III only

II, III, and IV only

I, II, III, and IV

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Question 16

Multiple Choice

Which one of the following is a capital structure decision?

Choose correct answer/s

determining which one of two projects to accept

determining how to allocate investment funds to multiple projects

determining the amount of funds needed to finance customer purchases of a new product

determining how much debt should be assumed to fund a project

determining how much inventory will be needed to support a project

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Question 17

Multiple Choice

The decision to issue additional shares of stock is an example of which one of the following?

Choose correct answer/s

working capital management

net working capital decision

capital budgeting

controller's duties

capital structure decision

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Question 18

Multiple Choice

Which of the following accounts are included in working capital management?
I)accounts payable
II)accounts receivable
III)fixed assets
IV)inventory

Choose correct answer/s

I and II only

I and III only

II and IV only

I, II, and IV only

II, III, and IV only

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Question 19

Multiple Choice

Which one of the following is a working capital management decision?

Choose correct answer/s

determining the amount of equipment needed to complete a job

determining whether to pay cash for a purchase or use the credit offered by the supplier

determining the amount of long-term debt required to complete a project

determining the number of shares of stock to issue to fund an acquisition

determining whether or not a project should be accepted

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Question 20

Multiple Choice

Which one of the following statements concerning a sole proprietorship is correct?

Choose correct answer/s

A sole proprietorship is designed to protect the personal assets of the owner.

The profits of a sole proprietorship are subject to double taxation.

The owner of a sole proprietorship is personally responsible for all of the company's debts.

There are very few sole proprietorships remaining in the U.S. today.

A sole proprietorship is structured the same as a limited liability company.

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Introduction To Corporate Finance

Which one of the following terms is defined as the management of a firm's long-term investments?

Which one of the following terms is defined as the mixture of a firm's debt and equity financing?

Which one of the following is defined as a firm's short-term assets and its short-term liabilities?

A business owned by a solitary individual who has unlimited liability for its debt is called a:

A business formed by two or more individuals who each have unlimited liability for all of the firm's business debts is called a:

A business partner whose potential financial loss in the partnership will not exceed his or her investment in that partnership is called a:

A business created as a distinct legal entity and treated as a legal "person" is called a:

Which one of the following terms is defined as a conflict of interest between the corporate shareholders and the corporate managers?

A stakeholder is:

Which of the following questions are addressed by financial managers?I)How should a product be marketed?II)Should customers be given 30 or 45 days to pay for their credit purchases?III)Should the firm borrow more money?IV)Should the firm acquire new equipment?

Which one of the following functions should be the responsibility of the controller rather than the treasurer?

The controller of a corporation generally reports directly to the:

Which one of the following correctly defines the upward chain of command in a typical corporate organizational structure?

Which one of the following is a capital budgeting decision?

Which of the following should a financial manager consider when analyzing a capital budgeting project?I)project start up costsII)timing of all projected cash flowsIII)dependability of future cash flowsIV)dollar amount of each projected cash flow

Which one of the following is a capital structure decision?

The decision to issue additional shares of stock is an example of which one of the following?

Which of the following accounts are included in working capital management?I)accounts payableII)accounts receivableIII)fixed assetsIV)inventory

Which one of the following is a working capital management decision?

Which one of the following statements concerning a sole proprietorship is correct?

Which of the following questions are addressed by financial managers?
I)How should a product be marketed?
II)Should customers be given 30 or 45 days to pay for their credit purchases?
III)Should the firm borrow more money?
IV)Should the firm acquire new equipment?

Which of the following should a financial manager consider when analyzing a capital budgeting project?
I)project start up costs
II)timing of all projected cash flows
III)dependability of future cash flows
IV)dollar amount of each projected cash flow

Which of the following accounts are included in working capital management?
I)accounts payable
II)accounts receivable
III)fixed assets
IV)inventory