https://www.stuvia.com/
Test Bank for
Fundamentals
of Corporate
Finance 10th
Edition by
Ross
,https://www.stuvia.com/
Multiple Choice Questions
1. The person generally directly responsible for overseeing the tax management, cost
accounting, financial accounting, and information system functions is the:
A. treasure
r.
B. directo
r.
C. controlle
r.
D. chairman of the
board.
E. chief executive
officer.
AACSB: Analytic
Blooms: Remember
Difficulty level: 1 Easy
Topic: What is Corporate Finance?
2. The person generally directly responsible for overseeing the cash and credit functions,
financial planning, and capital expenditures is the:
A. treasure
r.
B. directo
r.
C. controlle
r.
D. chairman of the
board.
E. chief operations
officer.
AACSB: Analytic
Blooms: Remember
Difficulty level: 1 Easy
Topic: What is Corporate Finance?
,https://www.stuvia.com/
3. The process of planning and managing a firm's long-term investments is called:
A. working capital
management.
B. financial
depreciation.
C. agency cost
analysis.
D. capital
budgeting.
E. capital
structure.
AACSB: Analytic
Blooms: Remember
Difficulty level: 1 Easy
Topic: What is Corporate Finance?
4. The mixture of debt and equity used by a firm to finance its operations is called:
A. working capital
management.
B. financial
depreciation.
C. cost
analysis.
D. capital
budgeting.
E. capital
structure.
AACSB: Analytic
Blooms: Remember
Difficulty level: 1 Easy
Topic: What is Corporate Finance?
5. The management of a firm's short-term assets and liabilities is called:
A. working capital
management.
B. debt
management.
C. equity
management.
D. capital
budgeting.
E. capital
structure.
AACSB: Analytic
Blooms: Remember
Difficulty level: 1 Easy
Topic: What is Corporate Finance?
,https://www.stuvia.com/
6. A business owned by a single individual is called a:
A. corporatio
n.
B. sole
proprietorship.
C. general
partnership.
D. limited
partnership.
E. limited liability
company.
AACSB: Analytic
Blooms: Remember
Difficulty level: 1 Easy
Topic: The Corporate Firm
7. A business formed by two or more individuals who each have unlimited liability for
business debts is called a:
A. corporatio
n.
B. sole
proprietorship.
C. general
partnership.
D. limited
partnership.
E. limited liability
company.
AACSB: Analytic
Blooms: Remember
Difficulty level: 1 Easy
Topic: The Corporate Firm
8. The division of profits and losses among the members of a partnership is formalized in
the:
A. indemnity
clause.
B. indenture
contract.
C. statement of
purpose.
D. partnership
agreement.
E. group
charter.
AACSB: Analytic
Test Bank for
Fundamentals
of Corporate
Finance 10th
Edition by
Ross
,https://www.stuvia.com/
Multiple Choice Questions
1. The person generally directly responsible for overseeing the tax management, cost
accounting, financial accounting, and information system functions is the:
A. treasure
r.
B. directo
r.
C. controlle
r.
D. chairman of the
board.
E. chief executive
officer.
AACSB: Analytic
Blooms: Remember
Difficulty level: 1 Easy
Topic: What is Corporate Finance?
2. The person generally directly responsible for overseeing the cash and credit functions,
financial planning, and capital expenditures is the:
A. treasure
r.
B. directo
r.
C. controlle
r.
D. chairman of the
board.
E. chief operations
officer.
AACSB: Analytic
Blooms: Remember
Difficulty level: 1 Easy
Topic: What is Corporate Finance?
,https://www.stuvia.com/
3. The process of planning and managing a firm's long-term investments is called:
A. working capital
management.
B. financial
depreciation.
C. agency cost
analysis.
D. capital
budgeting.
E. capital
structure.
AACSB: Analytic
Blooms: Remember
Difficulty level: 1 Easy
Topic: What is Corporate Finance?
4. The mixture of debt and equity used by a firm to finance its operations is called:
A. working capital
management.
B. financial
depreciation.
C. cost
analysis.
D. capital
budgeting.
E. capital
structure.
AACSB: Analytic
Blooms: Remember
Difficulty level: 1 Easy
Topic: What is Corporate Finance?
5. The management of a firm's short-term assets and liabilities is called:
A. working capital
management.
B. debt
management.
C. equity
management.
D. capital
budgeting.
E. capital
structure.
AACSB: Analytic
Blooms: Remember
Difficulty level: 1 Easy
Topic: What is Corporate Finance?
,https://www.stuvia.com/
6. A business owned by a single individual is called a:
A. corporatio
n.
B. sole
proprietorship.
C. general
partnership.
D. limited
partnership.
E. limited liability
company.
AACSB: Analytic
Blooms: Remember
Difficulty level: 1 Easy
Topic: The Corporate Firm
7. A business formed by two or more individuals who each have unlimited liability for
business debts is called a:
A. corporatio
n.
B. sole
proprietorship.
C. general
partnership.
D. limited
partnership.
E. limited liability
company.
AACSB: Analytic
Blooms: Remember
Difficulty level: 1 Easy
Topic: The Corporate Firm
8. The division of profits and losses among the members of a partnership is formalized in
the:
A. indemnity
clause.
B. indenture
contract.
C. statement of
purpose.
D. partnership
agreement.
E. group
charter.
AACSB: Analytic
