ASU FIN 300 Exam 1 (2025) Actual Exam
Questions and Answers A+ Graded
Productive .assets .- .CORRECT .ANSWER-the .long-term .tangible .and .intangible
.assets .a .firm .uses .to .generate .cash .flows
3 .fundamental .decisions .in .financial .management .- .CORRECT .ANSWER-a.
.Capital .budgeting- .which .productive .assets .to .buy
b. .Financing .decisions- .raising .money .to .buy .more .p .assets, .mainly .through
.selling .long .term .debt .and .equity
c. .Working .capital .decisions- .involve .how .firms .manage .their .current .assets
.and .liabilities. .Enough .money .to .pay .the .bills .and .any .money .left .over .is
.invested .to .earn .a .return
Forms .of .Business .Organization .- .CORRECT .ANSWER-a. .Sole .proprietorship-
.earnings .taxed .as .personal .income, .owner .has .all .of .the .liability
b. .Partnership- .more .management .skills .with .two .people, .complicated .decision
.making
c. .Corporation- .separate .legal .status .and .ability .to .recruit .professional
.management, .corporate .income .taxed .twice, .conflicting .goals .between .owners
.and .management
d. .LLC- .owners .not .personally .responsible, .combine .corporation .with .sole
.proprietorship
C .Corporation .- .CORRECT .ANSWER-The .most .common .type .of .corporation,
.which .is .a .legal .business .entity .that .offers .limited .liability .to .all .of .its .owners,
.who .are .called .stockholders
S .Corporation .- .CORRECT .ANSWER-corporation .taxed .as .though .it .were .a
.partnership .with .restrictions .on .shareholders
B .Corporation .- .CORRECT .ANSWER-a .business .that .explicitly .seeks .to .blend
.its .social .objectives .with .its .financial .goals
The .goal .of .the .firm .- .CORRECT .ANSWER-maximize .shareholder .wealth
Sarbanes-Oxley .Act .- .CORRECT .ANSWER-A .law .passed .by .Congress .that
.requires .the .CEO .and .CFO .to .certify .that .their .firm's .financial .statements .are
.accurate.
Questions and Answers A+ Graded
Productive .assets .- .CORRECT .ANSWER-the .long-term .tangible .and .intangible
.assets .a .firm .uses .to .generate .cash .flows
3 .fundamental .decisions .in .financial .management .- .CORRECT .ANSWER-a.
.Capital .budgeting- .which .productive .assets .to .buy
b. .Financing .decisions- .raising .money .to .buy .more .p .assets, .mainly .through
.selling .long .term .debt .and .equity
c. .Working .capital .decisions- .involve .how .firms .manage .their .current .assets
.and .liabilities. .Enough .money .to .pay .the .bills .and .any .money .left .over .is
.invested .to .earn .a .return
Forms .of .Business .Organization .- .CORRECT .ANSWER-a. .Sole .proprietorship-
.earnings .taxed .as .personal .income, .owner .has .all .of .the .liability
b. .Partnership- .more .management .skills .with .two .people, .complicated .decision
.making
c. .Corporation- .separate .legal .status .and .ability .to .recruit .professional
.management, .corporate .income .taxed .twice, .conflicting .goals .between .owners
.and .management
d. .LLC- .owners .not .personally .responsible, .combine .corporation .with .sole
.proprietorship
C .Corporation .- .CORRECT .ANSWER-The .most .common .type .of .corporation,
.which .is .a .legal .business .entity .that .offers .limited .liability .to .all .of .its .owners,
.who .are .called .stockholders
S .Corporation .- .CORRECT .ANSWER-corporation .taxed .as .though .it .were .a
.partnership .with .restrictions .on .shareholders
B .Corporation .- .CORRECT .ANSWER-a .business .that .explicitly .seeks .to .blend
.its .social .objectives .with .its .financial .goals
The .goal .of .the .firm .- .CORRECT .ANSWER-maximize .shareholder .wealth
Sarbanes-Oxley .Act .- .CORRECT .ANSWER-A .law .passed .by .Congress .that
.requires .the .CEO .and .CFO .to .certify .that .their .firm's .financial .statements .are
.accurate.
