Test Bank for Principles of
Managerial Finance, 15th
Edition by Lawrence J.
Gitman and Chad J. Zutter
Which one of the following terms is defined as the management of a firm's long-term
investments?
A. working capital management
B. financial allocation
C. agency cost analysis
D. capital budgeting
E. capital structure - correct answers--D
Which one of the following terms is defined as the mixture of a firm's debt and equity
financing?
A. working capital management
, B. cash management
C. cost analysis
D. capital budgeting
E. capital structure - correct answers--E.
Which one of the following is defined as a firm's short-term assets and its short-term
liabilities?
A. working capital
B. debt
C. investment capital
D. net capital
E. capital structure - correct answers--A
A business owned by a solitary individual who has unlimited liability for its debt is called
a:
A. corporation.
B. sole proprietorship.
C. general partnership.
D. limited partnership.
E. limited liability company. - correct answers--B
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. corporation.
B. sole proprietorship.
C. general partnership.
D. limited partnership.
E. limited liability company. - correct answers--C
A business partner whose potential financial loss in the partnership will not exceed his
or her investment in that partnership is called a:
A. generally partner.
B. sole proprietor.
C. limited partner
D. corporate shareholder.
E. zero partner. - correct answers--C
A business created as a distinct legal entity and treated as a legal "person" is called a:
A. corporation.
B. sole proprietorship.
C. general partnership.
D. limited partnership.
E. unlimited liability company. - correct answers--A
Which one of the following terms is defined as a conflict of interest between the
corporate shareholders and the corporate managers?
Managerial Finance, 15th
Edition by Lawrence J.
Gitman and Chad J. Zutter
Which one of the following terms is defined as the management of a firm's long-term
investments?
A. working capital management
B. financial allocation
C. agency cost analysis
D. capital budgeting
E. capital structure - correct answers--D
Which one of the following terms is defined as the mixture of a firm's debt and equity
financing?
A. working capital management
, B. cash management
C. cost analysis
D. capital budgeting
E. capital structure - correct answers--E.
Which one of the following is defined as a firm's short-term assets and its short-term
liabilities?
A. working capital
B. debt
C. investment capital
D. net capital
E. capital structure - correct answers--A
A business owned by a solitary individual who has unlimited liability for its debt is called
a:
A. corporation.
B. sole proprietorship.
C. general partnership.
D. limited partnership.
E. limited liability company. - correct answers--B
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. corporation.
B. sole proprietorship.
C. general partnership.
D. limited partnership.
E. limited liability company. - correct answers--C
A business partner whose potential financial loss in the partnership will not exceed his
or her investment in that partnership is called a:
A. generally partner.
B. sole proprietor.
C. limited partner
D. corporate shareholder.
E. zero partner. - correct answers--C
A business created as a distinct legal entity and treated as a legal "person" is called a:
A. corporation.
B. sole proprietorship.
C. general partnership.
D. limited partnership.
E. unlimited liability company. - correct answers--A
Which one of the following terms is defined as a conflict of interest between the
corporate shareholders and the corporate managers?
