FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 1: Introduction to Corporate Finance

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 21

Multiple Choice

Review LaterAdd Note

Review Later

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

A) The vice president of finance reports to the chairman of the board.
B) The chief executive officer reports to the president.
C) The controller reports to the chief financial officer.
D) The treasurer reports to the president.
E) The chief operations officer reports to the vice president of production.

Correct Answer

verified

Show Answer

Question 22

Multiple Choice

Review LaterAdd Note

Review Later

Which one of the following statements is correct?

A) A general partnership is legally the same as a corporation.
B) Income from both sole proprietorships and partnerships that is taxable is treated as individual income.
C) Partnerships are the most complicated type of business to form.
D) All business organizations have bylaws.
E) Only firms organized as sole proprietorships have limited lives.

Correct Answer

verified

Show Answer

Question 23

Multiple Choice

Review LaterAdd Note

Sam, Alfredo, and Juan want to start a small U.S. business. 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?

One disadvantage of the corporate form of business ownership is the:

Which one of the following statements concerning stock exchanges is correct?

Decisions made by financial managers should primarily focus on increasing the:

When evaluating the timing of a project's projected cash flows, a financial manager is analyzing:

A business owned by a solitary individual who has unlimited liability for the firm's debt is called a:

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

Agency problems are most associated with:

Which one of the following statements is correct concerning the NYSE?

Which one of the following is a cash flow from a corporation into the financial markets?

The decision to issue additional shares of stock is an example of:

Financial managers should primarily focus on the interests of:

The Sarbanes-Oxley Act of 2002 holds a public company's ________ responsible for the accuracy of the company's financial statements.

Corporate bylaws:

A general partner:

Working capital management decisions include determining:

The growth of both sole proprietorships and partnerships is frequently limited by the firm's:

Which of the following parties are considered stakeholders of a firm?