Corporate Finance Test Bank Ch1
ch1
Student: ____________________________________________________________
___________________________
Multiple Choice Questions 1. The person generally directly responsible for overseeing the tax management, cost accounting, financial accounting, and information system functions is the: A. B. C. D. E. treasurer. director. controller. chairman of the board. chief executive officer.
2. The person generally directly responsible for overseeing the cash and credit functions, financial planning, and capital expenditures is the: A. B. C. D. E. treasurer. director. controller. chairman of the board. chief operations officer.
3. The process of planning and managing a firm's long-term investments is called: A. B. C. D. E. working capital management. financial depreciation. agency cost analysis. capital budgeting. capital structure.
4. The mixture of debt and equity used by a firm to finance its operations is called: A. B. C. D. E. working capital management. financial depreciation. cost analysis. capital budgeting. capital structure.
5. The management of a firm's short-term assets and liabilities is called: A. B. C. D. E. working capital management. debt management. equity management. capital budgeting. capital structure.
6. A business owned by a single individual is called a: A. B. C. D. E. corporation. sole proprietorship. general partnership. limited partnership. limited liability company.
7. A business formed by two or more individuals who each have unlimited liability for business debts is called a: A. B. C. D. E. corporation. sole proprietorship. general partnership. limited partnership. limited liability company.
8. The division of profits and losses among the members of a partnership is formalized in the: A. B. C. D. E. indemnity clause. indenture contract. statement of purpose. partnership agreement. group charter.
9. A business created as a distinct legal entity composed of one or more individuals or entities is called a: A. B. C. D. E. corporation. sole
Student: ____________________________________________________________
___________________________
Multiple Choice Questions 1. The person generally directly responsible for overseeing the tax management, cost accounting, financial accounting, and information system functions is the: A. B. C. D. E. treasurer. director. controller. chairman of the board. chief executive officer.
2. The person generally directly responsible for overseeing the cash and credit functions, financial planning, and capital expenditures is the: A. B. C. D. E. treasurer. director. controller. chairman of the board. chief operations officer.
3. The process of planning and managing a firm's long-term investments is called: A. B. C. D. E. working capital management. financial depreciation. agency cost analysis. capital budgeting. capital structure.
4. The mixture of debt and equity used by a firm to finance its operations is called: A. B. C. D. E. working capital management. financial depreciation. cost analysis. capital budgeting. capital structure.
5. The management of a firm's short-term assets and liabilities is called: A. B. C. D. E. working capital management. debt management. equity management. capital budgeting. capital structure.
6. A business owned by a single individual is called a: A. B. C. D. E. corporation. sole proprietorship. general partnership. limited partnership. limited liability company.
7. A business formed by two or more individuals who each have unlimited liability for business debts is called a: A. B. C. D. E. corporation. sole proprietorship. general partnership. limited partnership. limited liability company.
8. The division of profits and losses among the members of a partnership is formalized in the: A. B. C. D. E. indemnity clause. indenture contract. statement of purpose. partnership agreement. group charter.
9. A business created as a distinct legal entity composed of one or more individuals or entities is called a: A. B. C. D. E. corporation. sole