Test Bank for Fundamentals of Corporate Finance, 11th Edition by Richard Brealey, Stewart Myers, Alan Marcus- Complete ALL chapters covered

1. Corporate finance can be described as decisions made by: A. equity market investors. B. potential debt holders. C. company directors and management. D. financial analysts. 2. In corporate finance, the financing and investment decisions are related to questions concerning: A. how to generate profits and expand operations. B. how to reduce costs and survive. C. how to acquire and employ or invest funds. D. all of the given options. 3. Corporate decisions include: A. investment decisions. B. financing decisions. C. dividend decisions. D. all of the given options. A. receivables and payables. B. interim and final dividends. C. short-term and medium-term finance. D. short-term and long-term finance. 5. The ultimate objective of investment and financing decisions is to maximise: A. the number of projects the company is invested in. B. the amount added to the value of the owner's wealth. C. the salaries of all employees of the firm. D. the repayments that are made of debt. 6. Many small service businesses, retail stores and professional practices are operated as: A. joint ventures. B. partnership s. C. sole proprietorships. D. limited liability firms. 7. Which of the following is not one of the three major types of business structures in Australia: A. dealershi p. B. sole proprietorship. C. limited liability company. D. partnershi p. A. buying a share and selling it later when it increases in value B. simultaneous transactions in different markets that result in an immediate risk-free profit. C. agreeing on a price to buy or sell a security for in the future. D. buying a higher quality good for a cheaper price than is offered for a similar lower quality item. 9. The principle that a dollar is worth more the sooner it is to be received is the: A. value principle. B. value of money principle. C. time value of money principle. D. Fisher effect. 10. The interest rate quoted in the financial markets for borrowing and lending transactions is the: A. real interest rate. B. prime lending rate. C. nominal interest rate.