财务管理-CHAPTER-1

CHAPTER1IntroductiontoCorporateFinanceII.CONCEPTSFINANCIALMANAGEMENTd21.Whichofthefollowingquestionsareaddressedbyfinancialmanagers?I.Howlongwillittaketoproduceaproduct?II.Howlongshouldcustomersbegiventopayfortheircreditpurchases?III.Shouldthefirmborrowmoremoney?IV.Shouldthefirmbuildanewfactory?a.IandIVonlyb.IIandIIIonlyc.I,II,andIIIonlyd.II,III,andIVonlye.I,II,III,andIVORGANIZATIONALSTRUCTUREe22.Thetreasurerandthecontrollerofacorporationgenerallyreporttothe:a.boardofdirectors.b.chairmanoftheboard.c.chiefexecutiveofficer.d.president.e.vicepresidentoffinance.ORGANIZATIONALSTRUCTUREb23.Whichoneofthefollowingstatementsiscorrectconcerningtheorganizationalstructureofacorporation?a.Thevicepresidentoffinancereportstothechairmanoftheboard.b.Thechiefexecutiveofficerreportstotheboardofdirectors.c.Thecontrollerreportstothepresident.d.Thetreasurerreportstothechiefexecutiveofficer.e.Thechiefoperationsofficerreportstothevicepresidentofproduction.CAPITALBUDGETINGb24.Whichoneofthefollowingisacapitalbudgetingdecision?a.determininghowmuchdebtshouldbeborrowedfromaparticularlenderb.decidingwhetherornottoopenanewstorec.decidingwhentorepayalong-termdebtd.determininghowmuchinventorytokeeponhande.determininghowmuchmoneyshouldbekeptinthecheckingaccountCAPITALBUDGETINGe25.Whenconsideringacapitalbudgetingprojectthefinancialmanagershouldconsider:a.onlythesizeoftheproject.b.onlythetimingoftheprojectcashflows.c.onlytheriskoftheprojectcashflows.d.onlythesizeandtimingoftheprojectcashflows.e.thesize,timing,andriskoftheprojectcashflows.CAPITALSTRUCTUREa26.Capitalstructuredecisionsincludeconsiderationofthe:I.amountoflong-termdebttoassume.II.costofacquiringfunds.III.currentassetsandliabilities.IV.networkingcapital.a.IandIIonlyb.IIandIIIonlyc.IIIandIVonlyd.I,II,andIVonlye.I,III,andIVonlyCAPITALSTRUCTUREe27.Thedecisionofwhichlendertouseandwhichtypeoflong-termloanisbestforaprojectispartof:a.workingcapitalmanagement.b.thenetworkingcapitaldecision.c.capitalbudgeting.d.acontroller’sduties.e.thecapitalstructuredecision.WORKINGCAPITALMANAGEMENTe28.Workingcapitalmanagementincludesdecisionsconcerningwhichofthefollowing?I.accountspayableII.long-termdebtIII.accountsreceivableIV.inventorya.IandIIonlyb.IandIIIonlyc.IIandIVonlyd.I,II,andIIIonlye.I,III,andIVonlyWORKINGCAPITALMANAGEMENTe29.Workingcapitalmanagement:a.ensuresthatsufficientequipmentisavailabletoproducetheamountofproductdesiredonadailybasis.b.ensuresthatlong-termdebtisacquiredatthelowestpossiblecost.c.ensuresthatdividendsarepaidtoallstockholdersonanannualbasis.d.balancestheamountofcompanydebttotheamountofavailableequity.e.isconcernedwithhavingsufficientfundstooperatethebusinessonadailybasis.SOLEPROPRIETORSHIPd30.Whichoneofthefollowingstatementsconcerningasoleproprietorshipiscorrect?a.Asoleproprietorshipistheleastcommonformofbusinessownership.b.Theprofitsofasoleproprietorshiparetaxedtwice.c.Theownersofasoleproprietorshipshareprofitsasestablishedbythepartnershipagreement.d.Theownerofasoleproprietorshipmaybeforcedtosellhis/herpersonalassetstopaycompanydebts.e.Asoleproprietorshipisoftenstructuredasalimitedliabilitycompany.SOLEPROPRIETORSHIPa31.Whichoneofthefollowingstatementsconcerningasoleproprietorshipiscorrect?a.Thelifeofthefirmislimitedtothelifespanoftheowner.b.Theownercangenerallyraiselargesumsofcapitalquiteeasily.c.Theownershipofthefirmiseasytotransfertoanotherindividual.d.Thecompanymustpayseparatetaxesfromthosepaidbytheowner.e.Thelegalcoststoformasoleproprietorshiparequitesubstantial.PARTNERSHIPe32.Whichoneofthefollowingbestdescribestheprimaryadvantageofbeingalimitedpartnerratherthanageneralpartner?a.entitlementtoalargerportionofthepartnership’sincomeb.abilitytomanagetheday-to-dayaffairsofthebusinessc.nopotentialfinanciallossd.greatermanagementresponsibilitye.liabilityforfirmdebtslimitedtothecapitalinvestedPARTNERSHIPb33.Ageneralpartner:a.haslesslegalliabilitythanalimitedpartner.b.hasmoremanagementresponsibilitythanalimitedpartner.c.facesdoubletaxationwhereasalimitedpartnerdoesnot.d.cannotlosemorethantheamountofhis/herequityinvestment.e.isthetermappliedonlytocorporationswhichinvestinpartnerships.PARTNERSHIPc34.Apartnership:a.istaxedthesameasacorporation.b.agreementdefineswhetherthebusinessincomewillbetaxedlikeapartnershiporacorporation.c.terminatesatthedeathofanygeneralpartner.d.haslessofanabilitytoraisecapitalthanaproprietorship.e.allowsforeasytransferofinterestfromonegeneralpartnertoanother.PARTNERSHIPd35.Whichofthefollowingaredisadvantagesofapartnership?I.limitedlifeofthefirmII.personalliabilityforfirmdebtIII.greaterabilitytoraisecapitalthanasoleproprietorshipIV.lackofabilitytotransferpartnershipinteresta.IandIIonlyb.IIIandIVonlyc.IIandIIIonlyd.I,II,andIVonlye.I,III,andIVonlyCORPORATIONe36.Whichofthefollowingareadvantagesofthecorporateformofbusinessownership?I.limitedliabilityforfirmdebtII.doubletaxationIII.abilitytoraisecapitalIV.unlimitedfirmlifea.IandIIonlyb.IIIandIVonlyc.I,II,andIIIonlyd.II,III,andIVonlye.I,III,andIVonlyCORPORATIONa37.Whichoneofthefollowingstatementsiscorrectconcerningc