Finance 300 Exam #1 Chapters 1-5 || A+ Score Secured.
Profit maximization as a goal of the firm correct answers does not consider cash flow or risk
Wealth maximization as a goal of the firm correct answers takes a long-run perspective and
focuses on the owners of the firm
An important advantage a general partner usually has is correct answers usually a larger share of
profit distribution when the firm is successful
A Subchapter S corporation correct answers has limited liability for its owners
One of the most important disadvantages of the corporate form of business is correct answers
double taxation
A manager has responsibilities to stockholders correct answers for legal and ethical issues
Problems with seeking profit as a goal of the firm would include each of the following except
correct answers accountants have different ways of measuring profit
Which statement is correct about limited partners? correct answers there is no limit to the
number of limited partners that may participate
Which of the following would least affect the value of a firm's stock? correct answers market
share
liabilities and equity represent correct answers sources of funds
assets represent correct answers uses of funds
, liabilities represent correct answers a debt claim
equity represents correct answers an ownership claim
capital budgeting correct answers -deal with the firms investment in long term real assets
-ex. what projects should the firm invest
capital structure policy correct answers -deals with long-term financing of the firms activities
-ex. what mix of long term debt and equity will the firm use
working capital management correct answers -deals with management of short term (current)
assets
-ex. will the firm purchase supplies on credit or pay cash
financial analysis from the perspective of the investor correct answers -stockholders are the
owners of the firm
-bondholders are the creditors of the firm
the financial system correct answers the purpose is to bring together individuals, businesses, and
government entities that generate and spread funds
-businesses make up the biggest portion of deficit economic units
-households make up the biggest portion of surplus economic units
surplus economic units correct answers have funds left over after spending all they wish to spend
deficit economic units correct answers need to acquire additional funds to sustain their
operations
Profit maximization as a goal of the firm correct answers does not consider cash flow or risk
Wealth maximization as a goal of the firm correct answers takes a long-run perspective and
focuses on the owners of the firm
An important advantage a general partner usually has is correct answers usually a larger share of
profit distribution when the firm is successful
A Subchapter S corporation correct answers has limited liability for its owners
One of the most important disadvantages of the corporate form of business is correct answers
double taxation
A manager has responsibilities to stockholders correct answers for legal and ethical issues
Problems with seeking profit as a goal of the firm would include each of the following except
correct answers accountants have different ways of measuring profit
Which statement is correct about limited partners? correct answers there is no limit to the
number of limited partners that may participate
Which of the following would least affect the value of a firm's stock? correct answers market
share
liabilities and equity represent correct answers sources of funds
assets represent correct answers uses of funds
, liabilities represent correct answers a debt claim
equity represents correct answers an ownership claim
capital budgeting correct answers -deal with the firms investment in long term real assets
-ex. what projects should the firm invest
capital structure policy correct answers -deals with long-term financing of the firms activities
-ex. what mix of long term debt and equity will the firm use
working capital management correct answers -deals with management of short term (current)
assets
-ex. will the firm purchase supplies on credit or pay cash
financial analysis from the perspective of the investor correct answers -stockholders are the
owners of the firm
-bondholders are the creditors of the firm
the financial system correct answers the purpose is to bring together individuals, businesses, and
government entities that generate and spread funds
-businesses make up the biggest portion of deficit economic units
-households make up the biggest portion of surplus economic units
surplus economic units correct answers have funds left over after spending all they wish to spend
deficit economic units correct answers need to acquire additional funds to sustain their
operations
