FIN 310 STEWART EXAM 1 QUESTIONS
WITH 100% CORRECT ANSWERS |
LATEST UPDATE { GRADED A+}
The financial manager must execute his or her duties independent of the
other activities of the firm in order to properly maximize the value of the
firm.
T/F - ✔✔F
Deciding upon the form of organization for a business is an important
financial decision with potentially significant consequences for the
future wealth of the owners.
T/F - ✔✔T
,The proper goal of the financial manager should be to maximize the
firm's expected profit (or net income), since this will add the most
wealth to each of the individual shareholders (owners) of the firm.
T/F - ✔✔F
Maximizing Earnings Per Share (EPS) is an example of maximizing
shareholder wealth.
T/F - ✔✔F
An agency relationship between stockholders and managers.
T/F - ✔✔T
An agency relationship exists when one or more persons hire another
person to perform some service but withhold decision-making authority
from that person.
T/F - ✔✔F
Which of the following is not one of the things that causes a corporation
to have a significant advantage over a partnership or a proprietorship?
, a. Limited liability
b. Ease of transfer of ownership interest
c. Unlimited life
d. Elimination of double taxation
e. Ability to retain earnings and thus convert income from personal
income to capital gains - ✔✔d. elimination of double taxation
Which of the following statements is true?
a. One of the benefits of incorporating your business is that you are
entitled to receive unlimited liability.
b. Sole proprietorships are subject to more regulations than corporations
are subject to.
c. Sole proprietorships do not have to pay corporate tax.
d. All of the above are correct.
e. None of the answers above is correct. - ✔✔c. sole proprietorships do
not have to pay corporate tax
WITH 100% CORRECT ANSWERS |
LATEST UPDATE { GRADED A+}
The financial manager must execute his or her duties independent of the
other activities of the firm in order to properly maximize the value of the
firm.
T/F - ✔✔F
Deciding upon the form of organization for a business is an important
financial decision with potentially significant consequences for the
future wealth of the owners.
T/F - ✔✔T
,The proper goal of the financial manager should be to maximize the
firm's expected profit (or net income), since this will add the most
wealth to each of the individual shareholders (owners) of the firm.
T/F - ✔✔F
Maximizing Earnings Per Share (EPS) is an example of maximizing
shareholder wealth.
T/F - ✔✔F
An agency relationship between stockholders and managers.
T/F - ✔✔T
An agency relationship exists when one or more persons hire another
person to perform some service but withhold decision-making authority
from that person.
T/F - ✔✔F
Which of the following is not one of the things that causes a corporation
to have a significant advantage over a partnership or a proprietorship?
, a. Limited liability
b. Ease of transfer of ownership interest
c. Unlimited life
d. Elimination of double taxation
e. Ability to retain earnings and thus convert income from personal
income to capital gains - ✔✔d. elimination of double taxation
Which of the following statements is true?
a. One of the benefits of incorporating your business is that you are
entitled to receive unlimited liability.
b. Sole proprietorships are subject to more regulations than corporations
are subject to.
c. Sole proprietorships do not have to pay corporate tax.
d. All of the above are correct.
e. None of the answers above is correct. - ✔✔c. sole proprietorships do
not have to pay corporate tax
