FINA 3332 FINAL (UH) EXAM
QUESTIONS AND ANSWERS 100% PASS
2026/2027
Partnership - ANS An unincorporated business owned by two or more persons.
corporation - ANS A legal entity created by a state, separate and distinct from its owners and
managers, having unlimited life, easy transferability of ownership, and limited liability.
bylaws - ANS A set of rules drawn up by the founders of the corporation that indicates how
the company is to be governed; includes procedures for electing directors, rights of stckholders,
and how to change the bylaws when necessary.
corporate charter - ANS A document filed with the appropriate department of the state in
which a business is incorporated that provides information about the company, including its
name, address, directors, and amount of capital stock.
limited liability company (LLC) - ANS Offers the limited personal liability associated with a
corporation; however, the company's income is taxed like that of a partnership.
limited liability partnership (LLP) - ANS A partnership wherein at least one partner is
designated as a general partner with unlimited personal financial liability, and the other
partners are limited partners whose liability is limited to amounts they invest in the firm.
@2026 ALLRIGHTS RESERVED 1
,S corporation - ANS A corporation with no more than 100 stockholders that elects to be taxed
in the same manner as proprietorships and partnerships, so that business income is only taxed
once.
stockholder wealth maximization - ANS The appropriate goal for management decisions;
considers the risk and timing associated with expected cash flows to maximize the price of the
firm's common stock.
value - ANS The present, or current, value of the cash flows that an asset is expected to
generate in the future.
agency problem - ANS A potential conflict of interest between outside shareholders (owners)
and managers who make decisions about how to operate the firm.
Business ethics - ANS A company's attitude and conduct toward its stakeholders (employees,
customers, stockholders, and community). Ethical behavior requires fair and honest treatment
of all parties.
Hostile takeovers - ANS The acquisition of a company over the opposition of its management.
Corporate governance - ANS Deals with the set of rules a firm follows when conducting
business; these rules identify who is accountable for major financial decisions.
stakeholders - ANS Those who are associated with a business, including managers,
employees, customers, suppliers, creditors, stockholders, and other parties with an interest in
the firm's well-being.
@2026 ALLRIGHTS RESERVED 2
,proxy votes - ANS Voting power that is assigned to another party, such as another
stockholder or institution.
exchange rates - ANS The prices at which the currency of one country can be converted into
the currencies of other countries.
multinational companies - ANS Firms that operate in two or more countries.
industrial groups - ANS Organizations of companies in different industries with common
ownership interests, which include firms necessary to manufacture and sell products; networks
of manufacturers, suppliers, marketing organizations, distributors, retailers, and creditors.
hostile takeover - ANS The acquisition of a company over the opposition of its management.
To be successful, a financial institution is required to - ANS understand the cause of rise and
fall of interest rates.
Coordination of the finance function and the marketing function is critical to the success of a
company, especially a small, newly formed firm because it - ANS is necessary to ensure that
sufficient cash is generated to survive.
If any partner is unable to meet his or her pro rata claim in the event the partnership goes
bankrupt, the remaining partners - ANS must make good on the unsatisfied claims.
Which of the following must be filed by a limited liability company (LLC) with the state in which
the business is set up? - ANS Articles of organization
@2026 ALLRIGHTS RESERVED 3
, Which of the following is a reason for profit-motivated, free-enterprise economies to be more
successful than socialistic and communistic economic systems? - ANS Actions that help a firm
in a profit-motivated economy to increase the price of its stock are also beneficial to the society
at large.
equals net income divided by the number of outstanding shares of common stock. -
ANS Earnings per share
The Sarbanes-Oxley Act of 2002 requires a publicly traded corporation to have a committee that
consists of _____to oversee the firm's audits. - ANS outside directors
A company's attitude and conduct toward its employees, customers, community, and
stockholders is referred to as - ANS business ethics.
Which of the following statements about corporations that are considered open is true? -
ANS Their stocks are widely dispersed among a large number of different investors.
Which of the following statements about political risk is true? - ANS d. A nation is free to
place constraints on the transfer of corporate resources.
Corporation - ANS This entity, which is legally separate from its managers and owners, is
authorized by a state to conduct business.
Finance - ANS It addresses how money is raised and used by individuals, businesses, and
governments.
Stakeholder - ANS This term describes individuals and groups, both internal and external to
the company, whose support is critical to the success of the organization.
@2026 ALLRIGHTS RESERVED 4
QUESTIONS AND ANSWERS 100% PASS
2026/2027
Partnership - ANS An unincorporated business owned by two or more persons.
corporation - ANS A legal entity created by a state, separate and distinct from its owners and
managers, having unlimited life, easy transferability of ownership, and limited liability.
bylaws - ANS A set of rules drawn up by the founders of the corporation that indicates how
the company is to be governed; includes procedures for electing directors, rights of stckholders,
and how to change the bylaws when necessary.
corporate charter - ANS A document filed with the appropriate department of the state in
which a business is incorporated that provides information about the company, including its
name, address, directors, and amount of capital stock.
limited liability company (LLC) - ANS Offers the limited personal liability associated with a
corporation; however, the company's income is taxed like that of a partnership.
limited liability partnership (LLP) - ANS A partnership wherein at least one partner is
designated as a general partner with unlimited personal financial liability, and the other
partners are limited partners whose liability is limited to amounts they invest in the firm.
@2026 ALLRIGHTS RESERVED 1
,S corporation - ANS A corporation with no more than 100 stockholders that elects to be taxed
in the same manner as proprietorships and partnerships, so that business income is only taxed
once.
stockholder wealth maximization - ANS The appropriate goal for management decisions;
considers the risk and timing associated with expected cash flows to maximize the price of the
firm's common stock.
value - ANS The present, or current, value of the cash flows that an asset is expected to
generate in the future.
agency problem - ANS A potential conflict of interest between outside shareholders (owners)
and managers who make decisions about how to operate the firm.
Business ethics - ANS A company's attitude and conduct toward its stakeholders (employees,
customers, stockholders, and community). Ethical behavior requires fair and honest treatment
of all parties.
Hostile takeovers - ANS The acquisition of a company over the opposition of its management.
Corporate governance - ANS Deals with the set of rules a firm follows when conducting
business; these rules identify who is accountable for major financial decisions.
stakeholders - ANS Those who are associated with a business, including managers,
employees, customers, suppliers, creditors, stockholders, and other parties with an interest in
the firm's well-being.
@2026 ALLRIGHTS RESERVED 2
,proxy votes - ANS Voting power that is assigned to another party, such as another
stockholder or institution.
exchange rates - ANS The prices at which the currency of one country can be converted into
the currencies of other countries.
multinational companies - ANS Firms that operate in two or more countries.
industrial groups - ANS Organizations of companies in different industries with common
ownership interests, which include firms necessary to manufacture and sell products; networks
of manufacturers, suppliers, marketing organizations, distributors, retailers, and creditors.
hostile takeover - ANS The acquisition of a company over the opposition of its management.
To be successful, a financial institution is required to - ANS understand the cause of rise and
fall of interest rates.
Coordination of the finance function and the marketing function is critical to the success of a
company, especially a small, newly formed firm because it - ANS is necessary to ensure that
sufficient cash is generated to survive.
If any partner is unable to meet his or her pro rata claim in the event the partnership goes
bankrupt, the remaining partners - ANS must make good on the unsatisfied claims.
Which of the following must be filed by a limited liability company (LLC) with the state in which
the business is set up? - ANS Articles of organization
@2026 ALLRIGHTS RESERVED 3
, Which of the following is a reason for profit-motivated, free-enterprise economies to be more
successful than socialistic and communistic economic systems? - ANS Actions that help a firm
in a profit-motivated economy to increase the price of its stock are also beneficial to the society
at large.
equals net income divided by the number of outstanding shares of common stock. -
ANS Earnings per share
The Sarbanes-Oxley Act of 2002 requires a publicly traded corporation to have a committee that
consists of _____to oversee the firm's audits. - ANS outside directors
A company's attitude and conduct toward its employees, customers, community, and
stockholders is referred to as - ANS business ethics.
Which of the following statements about corporations that are considered open is true? -
ANS Their stocks are widely dispersed among a large number of different investors.
Which of the following statements about political risk is true? - ANS d. A nation is free to
place constraints on the transfer of corporate resources.
Corporation - ANS This entity, which is legally separate from its managers and owners, is
authorized by a state to conduct business.
Finance - ANS It addresses how money is raised and used by individuals, businesses, and
governments.
Stakeholder - ANS This term describes individuals and groups, both internal and external to
the company, whose support is critical to the success of the organization.
@2026 ALLRIGHTS RESERVED 4
