Corporate finance multiple choice questions and answers pdf
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Financial Management Multiple Choice Questions and Answers PDF book to download covers solved quiz questions and answers PDF on topics: Analysis of financial statements, basics of capital budgeting evaluating cash flows, bonds and bond valuation, cash flow estimation and risk analysis, cost of capital, financial options and applications in corporate finance, overview of financial management and environment, portfolio theory and asset pricing models, risk, return, and capital asset pricing model, stocks valuation and stock market equilibrium, time value of money for college and university level exams. Multiple choice questions on basics of capital budgeting evaluating cash flows quiz answers PDF covers MCQ questions on topics: Cash flow analysis, cash inflows and outflows, internal rate of return, multiple internal rate of returns, net present value, NPV and IRR formula, present value of annuity, and profitability index. Multiple choice questions on bonds and bond valuation quiz answers PDF covers MCQ questions on topics: Bond valuation calculations, changes in bond values over time, coupon bonds, financial bonds, key characteristics of bonds, maturity risk premium, risk free rate of return, risk free savings rate, semiannual coupons bonds, and who issues bonds in bonds and bond valuation.
FIN 571 final exam - 57 Questions | Free Answers | Corporate Finance | Phoenix
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 and II only B. I and III only C. II and IV only D. Which one of the following is a working capital management decision?
Which one of the following statements concerning a sole proprietorship is correct? 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. A sole proprietorship is structured the same as a limited liability company.
The life of a sole proprietorship is potentially unlimited. A sole proprietor can generally raise large sums of capital quite easily. Transferring ownership of a sole proprietorship is easier than transferring ownership of a corporation. A sole proprietorship is taxed the same as a C corporation. It is easy to create a sole proprietorship. Which of the following individuals have unlimited liability based on their ownership interest? II only B.
I and II only C. I, II, and IV only Which one of the following best describes the primary advantage of being a limited partner instead of a general partner? A general partner: A. Sam, Alfredo, and Juan want to start a small U. Juan will fund the venture but wants to limit his liability to his initial investment and has no interest in the daily operations.
Sam will contribute his full efforts on a daily basis but has limited funds to invest in the business. Alfredo will be involved as an active consultant and manager and will also contribute funds. Sam and Alfredo are willing to accept liability for the firm's debts as they feel they have nothing to lose by doing so.
All three individuals will share in the firm's profits and wish to keep the initial organizational costs of the business to a minimum. Which form of business entity should these individuals adopt? Sally and Alicia currently are general partners in a business located in Atlanta, Georgia. They are content with their current tax situation but are both very uncomfortable with the unlimited liability to which they are each subjected. Which form of business entity should they consider to replace their general partnership assuming they wish to remain the only two owners of their business?
Whichever organization they select, they wish to be treated equally. Which one of the following best states the primary goal of financial management? Which one of the following best illustrates that the management of a firm is adhering to the goal of financial management? Why should financial managers strive to maximize the current value per share of the existing stock? Which one of the following is an unintended result of the Sarbanes-Oxley Act? A firm which opts to "go dark" in response to the Sarbanes-Oxley Act: A.
Which of the following help convince managers to work in the best interest of the stockholders? Assume there are no golden parachutes. Which form of business structure is most associated with agency problems?
Which one of the following is an agency cost? Which one of the following is least likely to be an agency problem? Which one of the following is a means by which shareholders can replace company management?
Which one of the following statements is generally correct? Private placements must be registered with the SEC. All secondary markets are auction markets. Dealer markets have a physical trading floor. Auction markets match buy and sell orders. Dealers arrange trades but never own the securities traded.
Which one of the following statements concerning stock exchanges is correct? The NYSE is a dealer market. Most debt securities are traded on the NYSE. The stock is listed on the NYSE. This trade occurred in which one of the following? Which one of the following statements is correct concerning the NYSE? Any corporation desiring to be listed on the NYSE can do so for a fee. Which one of the following is a capital structure decision? Which one of the following actions by a financial manager is most apt to create an agency problem?
If the sole proprietor has limited capital to start with, it may not be desirable to spend part of that capital forming a corporation. Also, limited liability for business debts may not be a significant advantage if the proprietor has most of his or her personal assets tied up in the business already. Finally, for a typical small firm, having an unlimited life for the business has no real advantage since the heart and soul of the business is the person who founded it, thereby effectively limiting the life of the business to that of its founder.
The existence and viability of a sole proprietor is dependent upon one individual. Should that individual die, the entity would cease to exist. Likewise, should the owner lose interest in the business or become ill, the business might also cease to exist. With a corporation, the company ownership could be sold in any one of those situations such that the business entity would continue to exist.
Feedback: Refer to section 1. Both a sole proprietor and a general partner have unlimited liability for the firm's debts. However, as a sole proprietor you should be totally aware of all the business dealings of the firm.
In a general partnership, you may or may not handle the financial transactions and thus are accepting the responsibility for actions taken not only by yourself, but those of your partners. The primary goal of a financial manager should be to maximize the current value of the outstanding stock.
This goal focuses on enhancing the returns to stockholders who are the owners of the firm. However, managers frequently are more concerned with their personal benefits from employment, the prestige of their position, and the perks to which they feel entitled. There are numerous examples, some of which are excessive compensation packages, large corporate offices, excessive staffing, and first-class travel and conference locations, to name a few.
Some of the key requirements of Sarbanes-Oxley are: the prohibition of personal loans from the company to its officers, an annual report by management of the internal control and financial reporting within the firm along with an independent auditor's assessment of that report, a review and sign off by the corporate officers of the annual financial statements, and the responsibility for the accuracy of the financial reports placed directly on senior management of the firm.
While firms that have opted to remain publicly-owned are complying with these requirements, they are paying a cost to do so. This cost has caused other firms to "go dark" or to opt for listing on a foreign exchange rather than a U. While some of the results do match the intent of the Act, the costs, "going dark", and foreign listings were most likely not intended by the supporters of the Act.
How might agency problems arise in partnerships? Agency conflicts typically arise when there is a separation between the ownership and the management of a business. In a general partnership, especially if the partnership is small, there is less of a chance of an agency conflict if all the partners are involved with the business on a regular basis.
However, in a limited partnership, the opportunity exists for an agency problem to arise between the general and the limited partners. The NYSE is an auction market where sell orders are matched with buy orders. Dealers buy and sell for their own inventory. How do the actual effects of the Sarbanes-Oxley Act of compare to the initial intent of that Act? A limited partnership: A.
Which of the following apply to a partnership that consists solely of general partners? Which of the following are advantages of the corporate form of business ownership?
Chapter 01 Introduction to Corporate Finance Multiple Choice Questions
Which of the following is not one of the three fundamental methods of firm valuation? What is the value of the firm usually based on? Which of the following defines the market to book value? Promotion of welfare of human by corporate is called as a Social service b Philosophy c NGO work d Corporate philanthropy 6. Leasing of machinery can be categorized as a Fixed asset b Investment decision c Financing decision d Capital budgeting decision 7. A mutually exclusive decision means:. Which of the following has Net profit as basis for calculation a Net present value b Average rate of return c Internal rate of return d Payback period 9.
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Self test multiple choice questions
Financial analysts C Bank D Employees 6. Multiple-choice Quizzes that accompany Fundamentals of Financial Management, 13th ed. Once you have answered the questions, click on 'Submit Answers for Grading' to get your results. Carriage inward is allocated between the pre and post incorporation periods on the basis of: Your answer is incorrect.
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Start learn about fin final exam answers university of phoenix by best 57 questions Corporate Finance. If you are looking to learn how to solve FIN 57 1 Final. At year-end it will. If the firm wants no external. Multiple Analysis: Turnbull Corp. Its depreciation.