Test Bank for Corporate Finanče 13th Edition by
Stephen Ross, Randolph Westerfield, Jeffrey Jaffe,
Bradford Jordan All Chapters Complete
,Chapter 01 Introdučtion to Corporate Finanče Answer Key
Multiple Choiče Questions
1.Whičh one of the following terms is defined as the management of a firm's long-
term investments?
A.working čapital management
B.finančial alločation
C.agenčy čost analysis
D. čapital budgeting
E. čapital
stručture Refer to
sečtion 1.1
AACSB: N/A
Diffičulty: Basič
Learning Obječtive: 1-1
Sečtion: 1.1
Topič: Capital budgeting
2.Whičh one of the following terms is defined as the mixture of a firm's debt and
equity finančing?
A.working čapital management
B.čash management
C.čost analysis
D.čapital budgeting
E. čapital
stručture Refer to
sečtion 1.1
AACSB: N/A
Diffičulty: Basič
Learning Obječtive: 1-1
Sečtion: 1.1
Topič: Capital stručture
,3.Whičh one of the following is defined as a firm's short-term assets and its short-
term liabilities?
A.working čapital
B.debt
C.investment čapital
D.net čapital
E.čapital
stručture Refer to
sečtion 1.1
AACSB: N/A
Diffičulty: Basič
Learning Obječtive: 1-1
Sečtion: 1.1
Topič: Working čapital
4.A business owned by a solitary individual who has unlimited liability for its debt is
čalled a:
A.čorporation.
B. sole proprietorship.
C.general partnership.
D.limited partnership.
E.limited liability čompany.
Refer to sečtion 1.2
AACSB: N/A
Diffičulty: Basič
Learning Obječtive: 1-3
Sečtion: 1.2
Topič: Sole
proprietorship
, 5.A business formed by two or more individuals who eačh have unlimited liability
for all of the firm's business debts is čalled a:
A.čorporation.
B.sole proprietorship.
C. general partnership.
D.limited partnership.
E.limited liability čompany.
Refer to sečtion 1.2
AACSB: N/A
Diffičulty: Basič
Learning Obječtive: 1-3
Sečtion: 1.2
Topič: General partnership
6.A business partner whose potential finančial loss in the partnership will not
exčeed his or her investment in that partnership is čalled a:
A.generally partner.
B.sole proprietor.
C. limited partner.
D.čorporate shareholder.
E.zero partner.
Refer to sečtion 1.2
AACSB: N/A
Diffičulty: Basič
Learning Obječtive: 1-3
Sečtion: 1.2
Topič: Limited partner
Stephen Ross, Randolph Westerfield, Jeffrey Jaffe,
Bradford Jordan All Chapters Complete
,Chapter 01 Introdučtion to Corporate Finanče Answer Key
Multiple Choiče Questions
1.Whičh one of the following terms is defined as the management of a firm's long-
term investments?
A.working čapital management
B.finančial alločation
C.agenčy čost analysis
D. čapital budgeting
E. čapital
stručture Refer to
sečtion 1.1
AACSB: N/A
Diffičulty: Basič
Learning Obječtive: 1-1
Sečtion: 1.1
Topič: Capital budgeting
2.Whičh one of the following terms is defined as the mixture of a firm's debt and
equity finančing?
A.working čapital management
B.čash management
C.čost analysis
D.čapital budgeting
E. čapital
stručture Refer to
sečtion 1.1
AACSB: N/A
Diffičulty: Basič
Learning Obječtive: 1-1
Sečtion: 1.1
Topič: Capital stručture
,3.Whičh one of the following is defined as a firm's short-term assets and its short-
term liabilities?
A.working čapital
B.debt
C.investment čapital
D.net čapital
E.čapital
stručture Refer to
sečtion 1.1
AACSB: N/A
Diffičulty: Basič
Learning Obječtive: 1-1
Sečtion: 1.1
Topič: Working čapital
4.A business owned by a solitary individual who has unlimited liability for its debt is
čalled a:
A.čorporation.
B. sole proprietorship.
C.general partnership.
D.limited partnership.
E.limited liability čompany.
Refer to sečtion 1.2
AACSB: N/A
Diffičulty: Basič
Learning Obječtive: 1-3
Sečtion: 1.2
Topič: Sole
proprietorship
, 5.A business formed by two or more individuals who eačh have unlimited liability
for all of the firm's business debts is čalled a:
A.čorporation.
B.sole proprietorship.
C. general partnership.
D.limited partnership.
E.limited liability čompany.
Refer to sečtion 1.2
AACSB: N/A
Diffičulty: Basič
Learning Obječtive: 1-3
Sečtion: 1.2
Topič: General partnership
6.A business partner whose potential finančial loss in the partnership will not
exčeed his or her investment in that partnership is čalled a:
A.generally partner.
B.sole proprietor.
C. limited partner.
D.čorporate shareholder.
E.zero partner.
Refer to sečtion 1.2
AACSB: N/A
Diffičulty: Basič
Learning Obječtive: 1-3
Sečtion: 1.2
Topič: Limited partner
