财务管理chapter1.docx

1、财务管理chapter1CHAPTER 1Introduction to Corporate FinanceII. CONCEPTSFINANCIAL MANAGEMENTd 21. Which of the following questions are addressed by financial managers I. How long will it take to produce a product II. How long should customers be given to pay for their credit purchases III. Should the firm

2、 borrow more money IV. Should the firm build a new factory a. I and IV only b. II and III only c. I, II, and III only d. II, III, and IV only e. I, II, III, and IVORGANIZATIONAL STRUCTUREe 22. The treasurer and the controller of a corporation generally report to the: a. board of directors. b. chairm

3、an of the board. c. chief executive officer. d. president. e. vice president of finance.ORGANIZATIONAL STRUCTUREb 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. Th

4、e chief executive officer reports to the 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

5、 budgeting decision a. determining how 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 accoun

6、tCAPITAL BUDGETINGe 25. When considering a capital budgeting 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, t

7、iming, and risk of the project cash flows.CAPITAL STRUCTUREa 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 b. II and III only c. IIIand I

8、V only d. I, II, and IV only e. I, III, and IV onlyCAPITAL STRUCTUREe 27. The decision of which 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 c

9、apital structure decision.WORKING CAPITAL MANAGEMENTe 28. Working capital management includes decisions concerning which of the following I. accounts payable II. long-term debt III. accounts receivable IV. inventory a. I and II only b. I and III only c. II and IV only d. I, II, and III only e. I, II

10、I, and IV onlyWORKING CAPITAL MANAGEMENTe 29. Working capital management: a. ensures that sufficient equipment is available to produce the amount of product 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 sto

11、ckholders 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 operate the business on a daily basis.SOLE PROPRIETORSHIPd 30. Which one of the following statements concerning a sole proprietorship is correct a.

12、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 proprietorship share profits as established by the partnership agreement. d. The owner of a sole proprietorship may be forced to sell his/her persona

13、l assets to pay company debts. e. A sole proprietorship is often structured as a limited liability company.SOLE PROPRIETORSHIPa 31. Which one of the following statements concerning a sole proprietorship is correct a. The life of the firm is limited to the life span of the owner. b. The owner can gen

14、erally 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 paid by the owner. e. The legal costs to form a sole proprietorship are quite substantial.PARTNERSHIPe 32. Which one of the follo

15、wing 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 to manage the day-to-day affairs of the business c. no potential financial loss d. greater management responsibility e. liabilit

16、y for firm debts limited to the capital investedPARTNERSHIPb 33. A general partner: a. has less legal liability than a limited partner. b. has more management responsibility than a limited partner. c. faces double taxation whereas a limited partner does not. d. cannot lose more than the amount of hi

17、s/her equity investment. e. is the term applied only to corporations which invest in partnerships.PARTNERSHIPc 34. A partnership: a. is taxed the same as a corporation. b. agreement defines whether the business income will be taxed like a partnership or a corporation. c. terminates at the death of a

18、ny 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.PARTNERSHIPd 35. Which of the following are disadvantages of a partnership I. limited life of the firm II. personal liability for firm deb

19、t III. greater ability to raise capital than a sole proprietorship IV. lack of ability to transfer partnership interest a. I and II only b. IIIand IV only c. II and III only d. I, II, and IV only e. I, III, and IV onlyCORPORATIONe 36. Which of the following are advantages of the corporate form of bu

20、siness ownership I. limited liability for firm debt II. double taxation III. ability to raise capital IV. unlimited firm life a. I and II only b. IIIand IV only c. I, II, and III only d. II, III, and IV only e. I, III, and IV onlyCORPORATIONa 37. Which one of the following statements is correct conc

21、erning corporations a. The largest firms are usually corporations. b. The majority 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 o

22、f the stockholders.BUSINESS TYPESb 38. Which one of the following statements is 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. Bot

23、h partnerships and corporations have bylaws. e. All types of business formations 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 sto

24、ck that can be issued. d. set forth the rules by which the corporation regulates 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 companie

25、s. c. set forth the purpose of the firm. d. mandate the procedure for electing 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 corpor

26、ation. b. having liability exposure similar to that of a sole proprietor. c. being 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.CORPORATIONc 42. Which one of the followi

27、ng business types is best suited to raising large amounts of capital a. sole proprietorship b. limited liability company c. corporation d. general partnership e. limited partnershipCORPORATIONd 43. Which type of business organization has all the respective rights and privileges of a legal person a.

28、sole proprietorship b. general partnership c. limited partnership d. corporation e. limited liability companyGOAL OF FINANC 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

29、 at the maximum possible rate. b. doing so increases the salaries of all the employees. c. the current stockholders are the 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 compensatio

30、n.GOAL OF FINANCIAL MANAGEMENTd 45. The decisions made by financial managers should all be ones which increase the: a. size 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.

31、Which one of the following actions by a financial manager creates an agency problem a. refusing to borrow money when doing 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 equityAGENCY PROBLEMe 47. Which of the following help convince