FIN 3403 LATEST 2025 EXAM 1 WITH QUESTIONS AND VERIFIED CORRECT ANSWERS GRADED A+
GUARANTEED 100% PASS
A good financial decision will do which of the following? - (ANSWER)Increase shareholders equity
Increase the value of the firm's existing stock
A corporation is a distinct ________ entity and as such can have a name and take advantage of the legal
powers of natural persons - (ANSWER)legal
Some of the cash flow generated by a firm goes back to the financial markets in the form of
_____________? - (ANSWER)dividends and debt payments
Which positions generally report to the CFO? - (ANSWER)Controller
Treasurer
What are the two basic classifications under which most potential financial goals fall? -
(ANSWER)Earning or increasing profits
Controlling risk
The officer responsible for managing the firm's cash flows is the ________. - (ANSWER)treasurer
A general partnership has which of the following characteristics? - (ANSWER)It is difficult to transfer
ownership.
Each owner has unlimited liability for all firm debts.
Which of the following can be used to encourage managers to act in the best interests of shareholders?
- (ANSWER)The threat of termination.
Stock options and bonuses.
Managerial compensation tied to performance.
Monitoring through reports.
1
, FIN 3403 LATEST 2025 EXAM 1 WITH QUESTIONS AND VERIFIED CORRECT ANSWERS GRADED A+
GUARANTEED 100% PASS
Which term applies to the mixture of debt and equity maintained by a firm? - (ANSWER)Capital
structure
Which of the following, are possible financial goals for a company? - (ANSWER)Survival
Maximize profits
Minimize costs
In large firms, financial activity is usually associated with which top officer? - (ANSWER)Chief financial
officer
The relationship between stockholders and management can best be described as a _________
relationship. - (ANSWER)Agency
Because shareholders get paid last after all other obligations are satisfied, they are often called: -
(ANSWER)Residual owners
The owners of a corporation are called ________. - (ANSWER)Shareholders
A corporation receives cash from financial markets by selling ________ and _________. -
(ANSWER)Bonds
Stocks
The controller is responsible for which of the following tasks? - (ANSWER)Tax reporting
Financial accounting
How is ownership transferred in a corporation? - (ANSWER)Ownership is transferred by gifting or selling
stocks.
2
, FIN 3403 LATEST 2025 EXAM 1 WITH QUESTIONS AND VERIFIED CORRECT ANSWERS GRADED A+
GUARANTEED 100% PASS
What is true of a sole proprietorship? - (ANSWER)It is the simplest type of business to form.
A proprietorship has a limited life.
What are among the most important questions to be asked when a business is started? -
(ANSWER)What long-term investments should be made?
How will everyday financial activities be handled?
Where will long-term financing be obtained to pay for investments?
The life of a corporation __________. - (ANSWER)is unlimited.
Net working capital is defined as current assets minus current ________. - (ANSWER)liabilities
When one owner or creditor sells to another, the transaction takes place in the _________ market. -
(ANSWER)secondary
A business without separate legal authority formed by two or more people is known as a __________. -
(ANSWER)partnership
A sole proprietorship is a business owned by ________ person(s). - (ANSWER)one
___________ budgeting is the process of making and managing expenditures on long-term assets. -
(ANSWER)Capital
Which of the following are included in a firm's capital structure? - (ANSWER)Equity
Long-term debt
Which corporate officer is responsible for accurate financial reporting of the firm's activities? -
(ANSWER)Controller
3
GUARANTEED 100% PASS
A good financial decision will do which of the following? - (ANSWER)Increase shareholders equity
Increase the value of the firm's existing stock
A corporation is a distinct ________ entity and as such can have a name and take advantage of the legal
powers of natural persons - (ANSWER)legal
Some of the cash flow generated by a firm goes back to the financial markets in the form of
_____________? - (ANSWER)dividends and debt payments
Which positions generally report to the CFO? - (ANSWER)Controller
Treasurer
What are the two basic classifications under which most potential financial goals fall? -
(ANSWER)Earning or increasing profits
Controlling risk
The officer responsible for managing the firm's cash flows is the ________. - (ANSWER)treasurer
A general partnership has which of the following characteristics? - (ANSWER)It is difficult to transfer
ownership.
Each owner has unlimited liability for all firm debts.
Which of the following can be used to encourage managers to act in the best interests of shareholders?
- (ANSWER)The threat of termination.
Stock options and bonuses.
Managerial compensation tied to performance.
Monitoring through reports.
1
, FIN 3403 LATEST 2025 EXAM 1 WITH QUESTIONS AND VERIFIED CORRECT ANSWERS GRADED A+
GUARANTEED 100% PASS
Which term applies to the mixture of debt and equity maintained by a firm? - (ANSWER)Capital
structure
Which of the following, are possible financial goals for a company? - (ANSWER)Survival
Maximize profits
Minimize costs
In large firms, financial activity is usually associated with which top officer? - (ANSWER)Chief financial
officer
The relationship between stockholders and management can best be described as a _________
relationship. - (ANSWER)Agency
Because shareholders get paid last after all other obligations are satisfied, they are often called: -
(ANSWER)Residual owners
The owners of a corporation are called ________. - (ANSWER)Shareholders
A corporation receives cash from financial markets by selling ________ and _________. -
(ANSWER)Bonds
Stocks
The controller is responsible for which of the following tasks? - (ANSWER)Tax reporting
Financial accounting
How is ownership transferred in a corporation? - (ANSWER)Ownership is transferred by gifting or selling
stocks.
2
, FIN 3403 LATEST 2025 EXAM 1 WITH QUESTIONS AND VERIFIED CORRECT ANSWERS GRADED A+
GUARANTEED 100% PASS
What is true of a sole proprietorship? - (ANSWER)It is the simplest type of business to form.
A proprietorship has a limited life.
What are among the most important questions to be asked when a business is started? -
(ANSWER)What long-term investments should be made?
How will everyday financial activities be handled?
Where will long-term financing be obtained to pay for investments?
The life of a corporation __________. - (ANSWER)is unlimited.
Net working capital is defined as current assets minus current ________. - (ANSWER)liabilities
When one owner or creditor sells to another, the transaction takes place in the _________ market. -
(ANSWER)secondary
A business without separate legal authority formed by two or more people is known as a __________. -
(ANSWER)partnership
A sole proprietorship is a business owned by ________ person(s). - (ANSWER)one
___________ budgeting is the process of making and managing expenditures on long-term assets. -
(ANSWER)Capital
Which of the following are included in a firm's capital structure? - (ANSWER)Equity
Long-term debt
Which corporate officer is responsible for accurate financial reporting of the firm's activities? -
(ANSWER)Controller
3
