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Corporate Finance, Canadian Edition, 6th Edition
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by Jonathan Berk, Peter DeMarzo, All Chapters 1 - 31
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,TABLE OF CONTENTS fj fj
1. The Corporation and Financial Markets
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2. Introduction to Financial Statement Analysis fj fj fj fj
3. Financial Decision Making and the Law of One Price
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4. The Time Value of Money
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5. Interest Rates fj
6. Valuing Bonds fj
7. Investment Decision Rules fj fj
8. Fundamentals of Capital Budgeting fj fj fj
9. Valuing Stocks fj
10. Capital Markets and the Pricing of Risk
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11. Optimal Portfolio Choice and the Capital Asset Pricing Model
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12. Estimating the Cost of Capital fj fj fj fj
13. Investor Behavior and Capital Market Efficiency
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14. Capital Structure in a Perfect Market
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15. Debt and Taxes
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16. Financial Distress, Managerial Incentives, and Information
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17. Payout Policy fj
18. Capital Budgeting and Valuation with Leverage
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19. Valuation and Financial Modeling: A Case Study fj fj fj fj fj fj
20. Financial Options fj
21. Option Valuation fj
22. Real Options
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23. Raising Equity Capital fj fj
24. Debt Financing
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25. Leasing
26. Working Capital Management fj fj
27. Short-Term Financial Planning fj fj
28. Mergers and Acquisitions fj fj
29. Corporate Governance fj
30. Risk Management
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,31. International Corporate Finance
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, 1. The Corporation and Financial Markets fj fj fj fj
1.1 The Three Types of Firms fj fj fj fj
1) A sole proprietorship is owned by:
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A) one person fj
B) two or more people fj fj fj
C) shareholders
D) banker
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ANSWER A fj
Diff: 1 Type: MC
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Topic: 1.1 The Three Types of Firms
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2) In Canada, which of the following organization forms accounts for the greatest
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number offirms?
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A) Limited Liability Partnership fj fj
B) Limited Partnership fj
C) Sole Proprietorship fj
D) PubliclyTraded fj
CorporationANSWER: C
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Diff: 1 Type: MC
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Topic: 1.1 The Three Types of Firms
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3) Which of the following organization forms earns the most revenue?
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A) Privately Owned Corporation fj fj
B) Limited Partnership fj
C) Publicly Owned Corporation fj fj
D) Limited Liability fj
CompanyANSWER: C
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Diff: 1 Type: MC
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Topic: 1.1 The Three Types of Firms
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4) Which of the following is NOT an advantage of a sole proprietorship?
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A) Single taxation fj
B) Ease of setup fj fj
C) Limited liability fj
D) No separation of ownership and
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controlANSWER: C
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Diff: 2 Type: MC
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Corporate Finance, Canadian Edition, 6th Edition
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by Jonathan Berk, Peter DeMarzo, All Chapters 1 - 31
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,TABLE OF CONTENTS fj fj
1. The Corporation and Financial Markets
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2. Introduction to Financial Statement Analysis fj fj fj fj
3. Financial Decision Making and the Law of One Price
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4. The Time Value of Money
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5. Interest Rates fj
6. Valuing Bonds fj
7. Investment Decision Rules fj fj
8. Fundamentals of Capital Budgeting fj fj fj
9. Valuing Stocks fj
10. Capital Markets and the Pricing of Risk
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11. Optimal Portfolio Choice and the Capital Asset Pricing Model
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12. Estimating the Cost of Capital fj fj fj fj
13. Investor Behavior and Capital Market Efficiency
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14. Capital Structure in a Perfect Market
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15. Debt and Taxes
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16. Financial Distress, Managerial Incentives, and Information
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17. Payout Policy fj
18. Capital Budgeting and Valuation with Leverage
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19. Valuation and Financial Modeling: A Case Study fj fj fj fj fj fj
20. Financial Options fj
21. Option Valuation fj
22. Real Options
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23. Raising Equity Capital fj fj
24. Debt Financing
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25. Leasing
26. Working Capital Management fj fj
27. Short-Term Financial Planning fj fj
28. Mergers and Acquisitions fj fj
29. Corporate Governance fj
30. Risk Management
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,31. International Corporate Finance
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, 1. The Corporation and Financial Markets fj fj fj fj
1.1 The Three Types of Firms fj fj fj fj
1) A sole proprietorship is owned by:
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A) one person fj
B) two or more people fj fj fj
C) shareholders
D) banker
s fj
ANSWER A fj
Diff: 1 Type: MC
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Topic: 1.1 The Three Types of Firms
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2) In Canada, which of the following organization forms accounts for the greatest
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number offirms?
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A) Limited Liability Partnership fj fj
B) Limited Partnership fj
C) Sole Proprietorship fj
D) PubliclyTraded fj
CorporationANSWER: C
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Diff: 1 Type: MC
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Topic: 1.1 The Three Types of Firms
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3) Which of the following organization forms earns the most revenue?
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A) Privately Owned Corporation fj fj
B) Limited Partnership fj
C) Publicly Owned Corporation fj fj
D) Limited Liability fj
CompanyANSWER: C
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Diff: 1 Type: MC
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Topic: 1.1 The Three Types of Firms
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4) Which of the following is NOT an advantage of a sole proprietorship?
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A) Single taxation fj
B) Ease of setup fj fj
C) Limited liability fj
D) No separation of ownership and
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controlANSWER: C
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Diff: 2 Type: MC
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