ScienceEconomicsFinancial Management Chapter 1 example #35745
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Financial Management Chapter 1 example #35745

Zakari Evans avatar Zakari Evans
26 July 2023
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12 test answers

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question
Which one of the following best illustrates that the management of a firm is adhering to the goal of financial management?
answer
increase in the market value per share
question
Which one of the following characteristics applies to a limited liability company?
answer
taxed similar to a partnership
question
Which one of the following is a working capital management decision?
answer
determining whether to pay cash for a purchase or use the credit offered by the supplier
question
Which of the following should a financial manager consider when analyzing a capital budgeting project?
answer
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
question
Corporate bylaws:
answer
determine how a corporation regulates itself.
question
Which one of the following statements is correct concerning the NYSE?
answer
The listing requirements for the NYSE are more stringent than those of NASDAQ.
question
Which one of the following terms is defined as a conflict of interest between the corporate shareholders and the corporate managers?
answer
agency problem
question
Which one of the following statements concerning NASDAQ is FALSE?
answer
NASDAQ is an auction market.
question
Which one of the following actions by a financial manager is most apt to create an agency problem?
answer
increasing current profits when doing so lowers the value of the firm's equity
question
Which form of business structure is most associated with agency problems?
answer
corporation
question
Decisions made by financial managers should primarily focus on increasing which one of the following?
answer
market value per share of outstanding stock
question
Which one of the following correctly defines the upward chain of command in a typical corporate organizational structure?
answer
The treasurer reports to the vice president of finance.