财务管理组织CHAPTERWord文件下载.docx

1、 c. chief executive officer. d. president. e. vice president of finance.b 23. Which one of the following statements is correct concerning the organizational structure of a corporation? a. The vice president of finance reports to the chairman of the board. b. The chief executive officer reports to th

2、e board of directors. c. The controller reports to the president. d. The treasurer reports to the chief executive officer. e. The chief operations officer reports to the vice president of production.CAPITAL BUDGETINGb 24. Which one of the following is a capital budgeting decision? a. determining how

3、 much debt should be borrowed from a particular lender b. deciding whether or not to open a new store c. deciding when to repay a long-term debt d. determining how much inventory to keep on hand e. determining how much money should be kept in the checking accounte 25. When considering a capital budg

4、eting project the financial manager should consider: a. only the size of the project. b. only the timing of the project cash flows. c. only the risk of the project cash flows. d. only the size and timing of the project cash flows. e. the size, timing, and risk of the project cash flows.CAPITAL STRUC

5、TUREa 26. Capital structure decisions include consideration of the: I. amount of long-term debt to assume. II. cost of acquiring funds. III. current assets and liabilities. IV. net working capital. a. I and II only c. IIIand IV only d. I, II, and IV only e. I, III, and IV onlye 27. The decision of w

6、hich lender to use and which type of long-term loan is best for a project is part of: a. working capital management. b. the net working capital decision. c. capital budgeting. d. a controllers duties. e. the capital structure decision.WORKING CAPITAL MANAGEMENTe 28. Working capital management includ

7、es decisions concerning which of the following? I. accounts payable II. long-term debt III. accounts receivable IV. inventory b. I and III only c. II and IV only d. I, II, and III onlye 29. Working capital management: a. ensures that sufficient equipment is available to produce the amount of product

8、 desired on a daily basis. b. ensures that long-term debt is acquired at the lowest possible cost. c. ensures that dividends are paid to all stockholders on an annual basis. d. balances the amount of company debt to the amount of available equity. e. is concerned with having sufficient funds to oper

9、ate the business on a daily basis.SOLE PROPRIETORSHIPd 30. Which one of the following statements concerning a sole proprietorship is correct? a. A sole proprietorship is the least common form of business ownership. b. The profits of a sole proprietorship are taxed twice. c. The owners of a sole prop

10、rietorship share profits as established by the partnership agreement. d. The owner of a sole proprietorship may be forced to sell his/her personal assets to pay company debts. e. A sole proprietorship is often structured as a limited liability company.a 31. Which one of the following statements conc

11、erning a sole proprietorship is correct? a. The life of the firm is limited to the life span of the owner. b. The owner can generally raise large sums of capital quite easily. c. The ownership of the firm is easy to transfer to another individual. d. The company must pay separate taxes from those pa

12、id by the owner. e. The legal costs to form a sole proprietorship are quite substantial.PARTNERSHIPe 32. Which one of the following best describes the primary advantage of being a limited partner rather than a general partner? a. entitlement to a larger portion of the partnerships income b. ability

13、to manage the day-to-day affairs of the business c. no potential financial loss d. greater management responsibility e. liability for firm debts limited to the capital investedb 33. A general partner: a. has less legal liability than a limited partner. b. has more management responsibility than a li

14、mited partner. c. faces double taxation whereas a limited partner does not. d. cannot lose more than the amount of his/her equity investment. e. is the term applied only to corporations which invest in partnerships.c 34. A partnership: a. is taxed the same as a corporation. b. agreement defines whet

15、her the business income will be taxed like a partnership or a corporation. c. terminates at the death of any general partner. d. has less of an ability to raise capital than a proprietorship. e. allows for easy transfer of interest from one general partner to another.d 35. Which of the following are

16、 disadvantages of a partnership? I. limited life of the firm II. personal liability for firm debt III. greater ability to raise capital than a sole proprietorship IV. lack of ability to transfer partnership interest b. IIIand IV only c. II and III onlyCORPORATIONe 36. Which of the following are adva

17、ntages of the corporate form of business ownership? I. limited liability for firm debt II. double taxation III. ability to raise capital IV. unlimited firm lifea 37. Which one of the following statements is correct concerning corporations? a. The largest firms are usually corporations. b. The majori

18、ty of firms are corporations. c. The stockholders are usually the managers of a corporation. d. The ability of a corporation to raise capital is quite limited. e. The income of a corporation is taxed as personal income of the stockholders.BUSINESS TYPESb 38. Which one of the following statements is

19、correct? a. Both partnerships and corporations incur double taxation. b. Both sole proprietorships and partnerships are taxed in a similar fashion. c. Partnerships are the most complicated type of business to form. d. Both partnerships and corporations have bylaws. e. All types of business formation

20、s have limited lives.ARTICLES OF INCORPORATIONc 39. The articles of incorporation: a. can be used to remove company management. b. are amended annually by the company stockholders. c. set forth the number of shares of stock that can be issued. d. set forth the rules by which the corporation regulate

21、s its existence. e. can set forth the conditions under which the firm can avoid double taxation.BYLAWSd 40. The bylaws: a. establish the name of the corporation. b. are rules which apply only to limited liability companies. c. set forth the purpose of the firm. d. mandate the procedure for electing

22、corporate directors. e. set forth the procedure by which the stockholders elect the senior managers of the firm.LIMITED LIABILITY COMPANYc 41. The owners of a limited liability company prefer: a. being taxed like a corporation. b. having liability exposure similar to that of a sole proprietor. c. be

23、ing taxed personally on all business income. d. having liability exposure similar to that of a general partner. e. being taxed like a corporation with liability like a partnership.c 42. Which one of the following business types is best suited to raising large amounts of capital? a. sole proprietorsh

24、ip b. limited liability company c. corporation d. general partnership e. limited partnershipd 43. Which type of business organization has all the respective rights and privileges of a legal person? b. general partnership c. limited partnership d. corporation e. limited liability companyGOAL OF FINAN

25、C IAL MANAGEMENTc 44. Financial managers should strive to maximize the current value per share of the existing stock because: a. doing so guarantees the company will grow in size at the maximum possible rate. b. doing so increases the salaries of all the employees. c. the current stockholders are th

26、e owners of the corporation. d. doing so means the firm is growing in size faster than its competitors. e. the managers often receive shares of stock as part of their compensation.GOAL OF FINANCIAL MANAGEMENTd 45. The decisions made by financial managers should all be ones which increase the: a. siz

27、e of the firm. b. growth rate of the firm. c. marketability of the managers. d. market value of the existing owners equity. e. financial distress of the firm.AGENCY PROBLEMc 46. Which one of the following actions by a financial manager creates an agency problem? a. refusing to borrow money when doin

28、g so will create losses for the firm b. refusing to lower selling prices if doing so will reduce the net profits c. agreeing to expand the company at the expense of stockholders value d. agreeing to pay bonuses based on the market value of the company stock e. increasing current costs in order to increase the market value of the stockholders equitye 47. Which of the follo