MGMT344 QUESTIONS AND ANSWERS A+ GRADED
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Inflation is assumed to be a temporary problem that does not affect financial
decisions.
false
What should be the primary goal of financial management?
Maximizing shareholder wealth
Real capital is composed of long-term plant and equipment.
true
What is financial capital as defined in the financial industry?
money
The Dodd-Frank Act's oversight allowing regulation of banking fees and available
products has been considered as not being in the best interests of a free market.
true
Proper risk-return management means that
the firm must determine an appropriate trade-off between risk and return.
Correct
Recently, the emphasis of financial management has been on the relationship
between risk and return.
true
One of the major disadvantages of a sole proprietorship is
that there is unlimited liability to the owner.
Sole proprietorship means single-person ownership and offers the advantages of
simplicity of decision making and low organizational and operating costs.
true
One of the major advantages of a sole proprietorship is
low operating costs.
Under the 2017 Tax Cuts and Jobs Act, the most significant change is that the
corporate tax rate goes from 35 percent to 21 percent, which puts U.S.
Companies on competitive footing with many other countries.
true
A corporation is:
all of the above:
owned by stockholders who enjoy the privilege of limited liability.
easily divisible between owners.
a separate legal entity with unlimited life.
In terms of revenues and profits, the corporation is by far the most important
form of business organization in the United States.
true
Corporate governance is the
relationship and exercise of oversight by the board of directors of the company.
Many companies such as Tyco, Enron, and WorldCom that suffered financial
distress in the late 1990s and early 2000s
.Buy Quality Materials!
Inflation is assumed to be a temporary problem that does not affect financial
decisions.
false
What should be the primary goal of financial management?
Maximizing shareholder wealth
Real capital is composed of long-term plant and equipment.
true
What is financial capital as defined in the financial industry?
money
The Dodd-Frank Act's oversight allowing regulation of banking fees and available
products has been considered as not being in the best interests of a free market.
true
Proper risk-return management means that
the firm must determine an appropriate trade-off between risk and return.
Correct
Recently, the emphasis of financial management has been on the relationship
between risk and return.
true
One of the major disadvantages of a sole proprietorship is
that there is unlimited liability to the owner.
Sole proprietorship means single-person ownership and offers the advantages of
simplicity of decision making and low organizational and operating costs.
true
One of the major advantages of a sole proprietorship is
low operating costs.
Under the 2017 Tax Cuts and Jobs Act, the most significant change is that the
corporate tax rate goes from 35 percent to 21 percent, which puts U.S.
Companies on competitive footing with many other countries.
true
A corporation is:
all of the above:
owned by stockholders who enjoy the privilege of limited liability.
easily divisible between owners.
a separate legal entity with unlimited life.
In terms of revenues and profits, the corporation is by far the most important
form of business organization in the United States.
true
Corporate governance is the
relationship and exercise of oversight by the board of directors of the company.
Many companies such as Tyco, Enron, and WorldCom that suffered financial
distress in the late 1990s and early 2000s
