Chapter 1

Which one of the following terms is defined as a conflict of interest between the corporate shareholders and the corporate managers?

Decisions made by financial managers should primarily focus on increasing which one of the following?

Which one of the following actions by a financial manager is most apt to create an agency problem?

Which one of these is a working capital management decision?

Which one of the following is a capital structure decision?

A stakeholder is:

Which one of the following terms is defined as the mixture of a firm's debt and equity financing?

Which of the following questions are addressed by financial managers? I. How should a product be marketed? II. Should customers be given 30 or 45 days to pay for their credit purchases? III. Should the firm borrow more money? IV. Should the firm acquire new equipment?

Which one of the following is defined as a firm's short-term assets and its short-term liabilities?

A business created as a distinct legal entity and treated as a legal "person" is called a:

Which one of the following is a capital budgeting decision?

A business formed by two or more individuals who each have unlimited liability for all of the firm's business debts is called a:

A business owned by a solitary individual who has unlimited liability for its debt is called a:

Which of the following should a financial manager consider when analyzing a capital budgeting project? I. Project start-up costs. II. Timing of all projected cash flows. III. Dependability of future cash flows. IV. Dollar amount of each projected cash flow.

Which one of the following is a working capital management decision?

Financial managers should primarily focus on the interests of: