Question 1

This is a general term for securities like stocks, bonds, and other assets that represent ownership in a cash flow.

Accepted Answer

A)  investment
B)  financial asset
C)  real asset
D)  financial markets

Question 2

Which of the following managers would NOT use finance?

Accepted Answer

A)  operational managers
B)  marketing managers
C)  human resource managers
D)  all of these choices are correct.

Question 3

Which of the following is NOT a function of the board of directors?

Accepted Answer

A)  hire the CEO
B)  evaluate the CEO
C)  design compensation contracts for the CEO
D)  provide reports to the auditors

Question 4

Which of the following is legal duty between two parties where one party must act in the interest of the other party?

Accepted Answer

A)  agency theory
B)  angel investor
C)  fiduciary
D)  investment banker

Question 5

The biggest disadvantage of the sole proprietorship is

Accepted Answer

A)  unlimited liability.
B)  double taxation.
C)  limited access to capital.
D)  total control.

Question 6

Which of the following statements is incorrect?

Accepted Answer

A)  Sole proprietorships are subject to less regulation.
B)  Both angel investors and venture capitalists exchange capital for ownership.
C)  Shareholders are responsible for paying off the corporate bonds in the event of a bankruptcy.
D)  All of these choices are correct.

Question 7

Which of the following statements is correct?

Accepted Answer

A)  Sole proprietorships are easy to start.
B)  If the sole proprietorship gets sued, the owner is not liable.
C)  It is relatively easy for sole proprietorships to raise money.
D)  Profits from the sole proprietorship are subject to double taxation.

Question 8

Which of the following statements is incorrect?

Accepted Answer

A)  Partnerships have unlimited liability.
B)  Most sole proprietors raise money by borrowing from banks.
C)  An advantage of sole proprietorships is that the owner has complete control.
D)  S corporations are considered a hybrid organization.

Question 9

This type of business organization is entirely legally independent from its owners.

Accepted Answer

A)  sole proprietorship
B)  partnership
C)  public corporations
D)  hybrid organizations

Question 10

This subarea of finance involves methods and techniques to make appropriate decisions about what kinds of securities to own, which firms' securities to buy, and how to be paid back in the form that the investor wishes.

Accepted Answer

A)  real markets
B)  investments
C)  financial management

Question 11

Which statement is incorrect regarding hybrid organizations?

Accepted Answer

A)  They offer single taxation.
B)  They offer limited risk to the owners.
C)  They offer the same type of control as a sole proprietorship.
D)  All of these choices are correct.

Exam 1: Introduction to Financial Management

This subarea of finance involves methods and techniques to make appropriate decisions about what kinds of securities to own, which firms' securities to buy, and how to be paid back in the form that the investor wishes.

Correct Answer
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Which of the following is legal duty between two parties where one party must act in the interest of the other party?

Correct Answer
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Which of the following managers would NOT use finance?

Correct Answer
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This type of business organization is entirely legally independent from its owners.

Correct Answer
verified

Which statement is incorrect regarding hybrid organizations?

Correct Answer
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The biggest disadvantage of the sole proprietorship is

Correct Answer
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Which of the following is NOT a function of the board of directors?

Correct Answer
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Which of the following statements is incorrect?

Correct Answer
verified

This is a general term for securities like stocks, bonds, and other assets that represent ownership in a cash flow.

Correct Answer
verified

Which of the following statements is incorrect?

Correct Answer
verified

Which of the following statements is correct?

Correct Answer
verified

Exam 1: Introduction to Financial Management

This subarea of finance involves methods and techniques to make appropriate decisions about what kinds of securities to own, which firms' securities to buy, and how to be paid back in the form that the investor wishes.

Correct AnswerverifiedShow Answer

Which of the following is legal duty between two parties where one party must act in the interest of the other party?

Correct AnswerverifiedShow Answer

Which of the following managers would NOT use finance?

Correct AnswerverifiedShow Answer

This type of business organization is entirely legally independent from its owners.

Correct AnswerverifiedShow Answer

Which statement is incorrect regarding hybrid organizations?

Correct AnswerverifiedShow Answer

The biggest disadvantage of the sole proprietorship is

Correct AnswerverifiedShow Answer

Which of the following is NOT a function of the board of directors?

Correct AnswerverifiedShow Answer

Which of the following statements is incorrect?

Correct AnswerverifiedShow Answer

This is a general term for securities like stocks, bonds, and other assets that represent ownership in a cash flow.

Correct AnswerverifiedShow Answer

Which of the following statements is incorrect?

Correct AnswerverifiedShow Answer

Which of the following statements is correct?

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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