Who Is The Owner Of Paul's Cabinets?
Quiz’s for Intro to financial management
Chapter 1 (Quiz 1) * Question 1
2 out of 2 points | | | A firm created as a separate and distinct legal entity that may be owned by one or more individuals or entities is called a:Answer | | | | | Correct Answer: | corporation. | | | | | * Question 2
2 out of 2 points | | | Paul is the owner of Paul's Cabinets, which is a sole proprietorship. The firm cannot pay its bills because a large customer defaulted on payment. Which one of the following statements is correct given this situation?Answer | | | | | Correct Answer: | Paul is personally liable for the entire debt of Paul's Cabinets. | | | | | * Question 3
2 out of 2 points | | | A
sole proprietorship is defined as a business:Answer | | | | | Correct Answer: | owned by a single individual. | | | | | * Question 4
2 out of 2 points | | | What is the goal of financial management for a sole proprietorship?Answer | | | | | Correct Answer: | maximize the market value of the equity | | | | | * Question 5
2 out of 2 points | | | Capital structure refers to the:Answer | | | | | Correct Answer: | mixture of debt and equity a firm uses to finance its operations. | | | | | * Question 6
2 out of 2 points | | | A firm's current assets and current liabilities are referred to as the firm's:Answer | | | | | Correct Answer: | working capital. | | | | | * Question 7
2 out of 2 points | | | Which one of the following functions should be assigned to the controller rather than the treasurer?Answer | | | | | Correct Answer: | tax management | | | | | * Question 8
2 out of 2 points | | | The process of managing a firm's long-term investments is called:Answer | | | | | Correct Answer: | capital budgeting. | | | | | * Question 9
2 out of 2 points | | | Evaluating the potential risks and rewards of investing in financial assets, such as domestic stocks, is part of which one of the following financial areas?Answer | | | | | Correct Answer: | investments | | | | | * Question 10
2 out of 2 points | | | Anyone other than a firm's stockholders or creditors who potentially has a claim on the cash flows of a firm is called a:Answer | | | | | Correct Answer: | stakeholder. | | | | |
Chapter 1 (Quiz 1) * Question 1
2 out of 2 points | | | A firm created as a separate and distinct legal entity that may be owned by one or more individuals or entities is called a:Answer | | | | | Correct Answer: | corporation. | | | | | * Question 2
2 out of 2 points | | | Paul is the owner of Paul's Cabinets, which is a sole proprietorship. The firm cannot pay its bills because a large customer defaulted on payment. Which one of the following statements is correct given this situation?Answer | | | | | Correct Answer: | Paul is personally liable for the entire debt of Paul's Cabinets. | | | | | * Question 3
2 out of 2 points | | | A
sole proprietorship is defined as a business:Answer | | | | | Correct Answer: | owned by a single individual. | | | | | * Question 4
2 out of 2 points | | | What is the goal of financial management for a sole proprietorship?Answer | | | | | Correct Answer: | maximize the market value of the equity | | | | | * Question 5
2 out of 2 points | | | Capital structure refers to the:Answer | | | | | Correct Answer: | mixture of debt and equity a firm uses to finance its operations. | | | | | * Question 6
2 out of 2 points | | | A firm's current assets and current liabilities are referred to as the firm's:Answer | | | | | Correct Answer: | working capital. | | | | | * Question 7
2 out of 2 points | | | Which one of the following functions should be assigned to the controller rather than the treasurer?Answer | | | | | Correct Answer: | tax management | | | | | * Question 8
2 out of 2 points | | | The process of managing a firm's long-term investments is called:Answer | | | | | Correct Answer: | capital budgeting. | | | | | * Question 9
2 out of 2 points | | | Evaluating the potential risks and rewards of investing in financial assets, such as domestic stocks, is part of which one of the following financial areas?Answer | | | | | Correct Answer: | investments | | | | | * Question 10
2 out of 2 points | | | Anyone other than a firm's stockholders or creditors who potentially has a claim on the cash flows of a firm is called a:Answer | | | | | Correct Answer: | stakeholder. | | | | |