财务管理复习习题VIP

1、Chapter 01 - Introduction to Corporate FinanceChapter01IntroductiontoCorporateFinanceMultipleChoiceQuestions1.Thepersongenerallydwectlyresponsibleforoverseeingthetaxmanagement,costaccounting,financialaccounting,andinformationsystemfunctionsisthe:A.treasurer.B. director.C. controller.D. chawmanoftheb

2、oard.E. chiefexecutiveofficer.2. Thepersongenerallydiiectlyresponsibleforoverseeingthecashandcreditfunctions,financialplanning,andcapitalexpendituresisthe:A. treasurer.B. director.C. controller.D. chairmanoftheboard.E. chiefoperationsofficer.3. Theprocessofplanningandmanagingafirm'slong-terminve

3、stmentsiscalled:A. workingcapitalmanagement.B. financialdepreciation.C. agencycostanalysis.D. capitalbudgeting.E. capitalstructure.4. Themixtureofdebtandequityusedbyafirmtofinanceitsoperationsiscalled:A. workingcapitalmanagement.B. financialdepreciation.C. costanalysis.D. capitalbudgeting.E. capital

4、structure.5. Themanagementofafirm'sshort-termassetsandliabilitiesiscalled:A. workingcapitalmanagement.B. debtmanagement.C. equitymanagement.D. capitalbudgeting.E. capitalstructure.6. Abusinessownedbyasingleindividualiscalleda:A. corporation.B. soleproprietorship.C. generalpartnership.D. limitedp

5、artnership.E. limitedliabilitycompany.7. Abusinessformedbytwoormoreindividualswhoeachhaveunlimitedliabilityforbusinessdebtsiscalleda:A. corporation.B. soleproprietorship.C. generalpartnership.D. limitedpartnership.E. limitedliabilitycompany.8. Thedivisionofprofitsandlossesamongthemembersofapartnersh

6、ipisformalizedinthe:A. indemnityclause.B. indenturecontract.C. statementofpurpose.D. partnershipagreement.E. groupcharter.1-409. Abusinesscreatedasadistinctlegalentitycomposedofoneormoreindividualsorentitiesiscalleda:A. corporation.B. soleproprietorship.C. generalpartnership.D. limitedpartnership.E.

7、 unlimitedliabilitycompany.10. Thecorporatedocumentthatsetsforththebusinesspurposeofafirmisthe:A.indenturecontract.B. statetaxagreement.C. corporatebylaws.D.debtcharter.E.articlesofincorporation.11. Therulesbywhichcorporationsgovernthemselvesarecalled:A. indentureprovisions.B. indemnityprovisions.C.

8、 charteragreements.D. bylaws.E. articlesofincorporation.12. Abusinessentityoperatedandtaxedlikeapartnership,butwithlimitedliabilityfortheowners,iscalleda:A. limitedliabilitycompany.B. generalpartnership.C. limitedproprietorship.D. soleproprietorship.E. corporation.13. Theprimarygoaloffinancialmanage

9、mentisto:A. maximizecurrentdividendspershareoftheexistingstock.B. maximizethecurrentvaluepershareoftheexistingstock.C. avoidfinancialdistress.D. minimizeoperationalcostsandmaximizefirmefficiency.E. maintainsteadygrowthinbothsalesandnetearnings.14. Aconflictofinterestbetweenthestockholdersandmanageme

10、ntofafirmiscalled:A.stockholders'liability.B. corporatebreakdown.C. theagencyproblem.D. corporateactivism.E.legalliability.15. Agencycostsreferto:A. thetotaldividendspaidtostockholdersoverthelifetimeofafirm.B. thecoststhatresultfromdefaultandbankruptcyofafirm.C. corporateincomesubjecttodoubletax

11、ation.D. thecostsofanyconflictsofinterestbetweenstockholdersandmanagement.E. thetotalinterestpaidtocreditorsoverthelifetimeofthefirm.16. Astakeholderis:A. anypersonorentitythatownssharesofstockofacorporation.B. anypersonorentitythathasvotingrightsbasedonstockownershipofacorporation.C.apersonwhoiniti

12、allystartedafirmandcurrentlyhasmanagementcontroloverthecashflowsofthefirmduetohis/hercuirentownershipofcompanystock.D. acreditortowhomthefirmcurrentlyowesmoneyandwhoconsequentlyhasaclaimonthecashflowsofthefirm.E. anypersonorentityotherthanastockholderorcreditorwhopotentiallyhasaclaimonthecashflowsof

13、thefirm.17. TheSarbanesOxleyActof2002isintendedto:A. protectfinancialmanagersfrominvestors.B. nothaveanyeffectonforeigncompanies.C. reducecorporaterevenues.D. protectinvestorsfromcorporateabuses.E. decreaseauditcostsforU.S.firms.18. Thetreasurerandthecontrollerofacorporationgenerallyreporttothe:A.bo

14、ardofdirectors.B. chairmanoftheboard.C. chiefexecutiveofficer.D. president.E. chieffinancialofficer.19. Whichoneofthefollowingstatementsiscoixectconcerningtheorganizationalstructureofacorporation?A. Thevicepresidentoffinancereportstothechakmanoftheboard.B. Thechiefexecutiveofficerreportstotheboardof

15、directors.C. Thecontrollerreportstothepresident.D. Thetreasurerreportstothechiefexecutiveofficer.E. Thechiefoperationsofficerreportstothevicepresidentofproduction.20. Whichoneofthefollowingisacapitalbudgetingdecision?A. determininghowmuchdebtshouldbeborrowedfromaparticularlenderB.decidingwhetherorno

16、ttoopenanewstoreC. decidingwhentorepayalong-termdebtD. determininghowmuchinventorytokeeponhandE. determininghowmuchmoneyshouldbekeptinthecheckingaccount21. TheSarbanesOxleyActwasenactedin:A.1952.B.1967.C.1998.D.2002.E.2006.22. SincetheimplementationofSarbanes-Oxley,thecostofgoingpublicintheUnitedSta

17、teshas:A. increased.B. decreased.C. remainedaboutthesame.D. beenerratic,butovertimehasdecreased.E. ItisimpossibletotellsinceSarbanes-Oxleycompliancedoesnotinvolvedirectcosttothefirm.23. Workingcapitalmanagementincludesdecisionsconcerningwhichofthefollowing?I. accountspayableII. long-termdebtIII. acc

18、ountsreceivableIV. inventoryA. IandIIonlyB. IandIIIonlyC. IIandTVonlyD. I,II,andIIIonlyE. I,III,andIVonly24. Workingcapitalmanagement:A. ensuresthatsufficientequipmentisavailabletoproducetheamountofproductdeskedonadailybasis.B. ensuresthatlong-termdebtisacquiredatthelowestpossiblecost.C. ensuresthat

19、dividendsarepaidtoallstockholdersonanannualbasis.D. balancestheamountofcompanydebttotheamountofavailableequity.E. isconcernedwiththeupperportionofthebalancesheet.25. Whichoneofthefollowingstatementsconcerningasoleproprietorshipisconect?A. Asoleproprietorshipistheleastcommonformofbusinessownership.B.

20、 Theprofitsofasoleproprietorshiparetaxedtwice.C. Theownersofasoleproprietorshipshareprofitsasestablishedbythepartnershipagreement.D. Theownerofasoleproprietorshipmaybeforcedtosellhis/herpersonalassetstopaycompanydebts.E. Asoleproprietorshipisoftenstructuredasalimitedliabilitycompany.26. Whichoneofth

21、efollowingstatementsconcerningasoleproprietorshipisconect?A. Thelifeofthefirmislimitedtothelifespanoftheowner.B. Theownercangenerallyraiselargesumsofcapitalquiteeasily.C.Theownershipofthefirmiseasytotransfertoanotherindividual.D. Thecompanymustpayseparatetaxesfromthosepaidbytheowner.E. Thelegalcosts

22、toformasoleproprietorshiparequitesubstantial.27. Whichoneofthefollowingbestdescribestheprimaryadvantageofbeingalimitedpartnerratherthanageneralpartner?A. entitlementtoalargerportionofthepartnership'sincomeB. abilitytomanagetheday-to-dayaffairsofthebusinessC.nopotentialfinanciallossD. greatermana

23、gementresponsibilityE. liabilityforfirmdebtslimitedtothecapitalinvested28. Ageneralpartner:A. haslesslegalliabilitythanalimitedpartner.B. hasmoremanagementresponsibilitythanalimitedpartner.C. facesdoubletaxationwhereasalimitedpartnerdoesnot.D. cannotlosemorethantheamountofhis/herequityinvestment.E.

24、isthetermappliedonlytocorporationswhichinvestinpartnerships.29. Apartnership:A. istaxedthesameasacorporation.B. agreementdefineswhetherthebusinessincomewillbetaxedlikeapartnershiporacorporation.C. terminatesatthedeathofanygeneralpartner.D. haslessofanabilitytoraisecapitalthanaproprietorship.E. allow

25、sforeasytransferofinterestfromonegeneralpartnertoanother.30. Whichofthefollowingaredisadvantagesofapartnership?I. limitedlifeofthefirmII. personalliabilityforfirmdebtIII. greaterabilitytoraisecapitalthanasoleproprietorshipIV. lackofabilitytotransferpartnershipinterestA.IandIIonlyB.IllandIVonlyC.IIan

26、dIIIonlyD.I,II,andIVonlyE.I,III,andIVonly31. Whichofthefollowingareadvantagesofthecorporateformofbusinessownership?I.limitedliabilityforfirmdebtII.doubletaxationIII.abilitytoraisecapitalTV.unlimitedfirmlifeA.IandIIonlyB.HIandTVonlyC.I, II,andIIIonlyD.II, III,andIVonlyE.I,DI,andIVonly32. Whichoneofth

27、efollowingstatementsiscorrectconcerningcorporations?A. Thelargestfirmsareusuallycorporations.B. Themajorityoffrmsarecorporations.C. Thestockholdersareusuallythemanagersofacorporation.D. Theabilityofacorporationtoraisecapitalisquitelimited.E. Theincomeofacorporationistaxedaspersonalincomeofthestockho

28、lders.33. Whichoneofthefollowingstatementsiscon-ect?A. Bothpartnershipsandcorporationsincurdoubletaxation.B. Bothsoleproprietorshipsandpartnershipsaretaxedinasimilarfashion.C. Partnershipsarethemostcomplicatedtypeofbusinesstoform.D. Bothpartnershipsandcorporationshavelimitedliabilityforgeneralpartne

29、rsandshareholders.E. Alltypesofbusinessformationshavelimitedlives.34. Thearticlesofincorporation:A. canbeusedtoremovecompanymanagement.B. areamendedannuallybythecompanystockholders.C. setforththenumberofsharesofstockthatcanbeissued.D. setforththerulesbywhichthecorporationregulatesitsexistence.E. can

30、setforththeconditionsunderwhichthefirmcanavoiddoubletaxation.35. Thebylaws:A. establishthenameofthecorporation.B. areruleswhichapplyonlytolimitedliabilitycompanies.C. setforththepurposeofthefirm.D. mandatetheprocedureforelectingcorporatedirectors.E. setforththeprocedurebywhichthestockholderselectthe

31、seniormanagersofthefirm.36. Theownersofalimitedliabilitycompanyprefer:A. beingtaxedlikeacorporation.B. havingliabilityexposuresimilartothatofasoleproprietor.C. beingtaxedpersonallyonallbusinessincome.D. havingliabilityexposuresimilartothatofageneralpartner.E. beingtaxedlikeacorporationwithliabilityl

32、ikeapartnership.37. Whichoneofthefollowingbusinesstypesisbestsuitedtoraisinglargeamountsofcapital?A. soleproprietorshipB. limitedliabilitycompanyC. corporationD. generalpartnershipE. limitedpartnership38. Whichtypeofbusinessorganizationhasalltherespectiverightsandprivilegesofalegalperson?A. soleprop

33、rietorshipB. generalpartnershipC. limitedpartnershipD. corporationE. limitedliabilitycompany39. Financialmanagersshouldstrivetomaximizethecuixentvaluepershareoftheexistingstockbecause:A. doingsoguaranteesthecompanywillgrowinsizeatthemaximumpossiblerate.B. doingsoincreasesthesalariesofalltheemployees

34、.C. thecurrentstockholdersaretheownersofthecorporation.D. doingsomeansthefirmisgrowinginsizefasterthanitscompetitors.E. themanagersoftenreceivesharesofstockaspartoftheircompensation.40. Thedecisionsmadebyfinancialmanagersshouldallbeoneswhichincreasethe:A.sizeofthefirm.B. growthrateofthefirm.C. marke

35、tabilityofthemanagers.D. marketvalueoftheexistingowners'equity.E. financialdistressofthefirm.41. Whichoneofthefollowingactionsbyafinancialmanagercreatesanagencyproblem?A. refusingtoboiTowmoneywhendoingsowillcreatelossesforthefirmB. refusingtolowersellingpricesifdoingsowillreducethenetprofitsC. a

36、greeingtoexpandthecompanyattheexpenseofstockholders1valueD.agreeingtopaybonusesbasedonthebookvalueofthecompanystockE.increasingcurrentcostsinordertoincreasethemarketvalueofthestockholders'equity42. Whichofthefollowinghelpconvincemanagerstoworkinthebestinterestofthestockholders?1. compensationbas

37、edonthevalueofthestockII.stockoptionplansIII.threatofaproxyfightIV.threatofconversiontoapartnershipA.IandIIonlyB.HandIUonlyC.I,IIandmonlyD.IandHIonlyE.I,H,HI,andIV43. Whichformofbusinessstructurefacesthegreatestagencyproblems?A. soleproprietorshipB. generalpartnershipC. limitedpartnershipD. corporat

38、ionE. limitedliabilitycompany44. Aproxyfightoccurswhen:A. theboardsolicitsrenewalofcun-entmembers.B. agroupsolicitsproxiestoreplacetheboardofdii-ectors.C. acompetitorofferstoselltheirownershipinthefirm.D. thefirmfilesforbankruptcy.E. theAimisdeclaredinsolvent.45. Whichoneofthefollowingpartiesisconsi

39、deredastakeholderofafirm?A. employeeB. short-termcreditorC. long-termcreditorD. prefeixedstockholderE. commonstockholder46. WhichofthefollowingarekeyrequirementsoftheSarbanes-OxleyAct?I. Officersofthecorporationmustreviewandsignannualreports.II. Officersofthecorporationmustnowownmorethan5%ofthefirm&

40、#39;sstock.ID.AnnualreportsmustlistdeficienciesininternalcontrolsIV.AnnualreportsmustbefiledwiththeSECwithin30daysofyearend.A. IonlyB. IIonlyC. IandIIIonlyD. IIandIIIonlyE. IIandIVonly47. Insidertradingis:A. legal.B. illegal.C. impossibletohaveinourefficientmarket.D. discouraged,butlegal.E. listonly

41、thesecuritiesofthelargestfirms.48. Soleproprietorshipsarepredominantlystartedbecause:A.theyareeasilyandcheaplysetup.B. theproprietorshiplifeislimitedtothebusinessownefslife.C. allbusinesstaxesarepaidasindividualtax.D. Alloftheabove.E. Noneoftheabove.49. Managersareencouragedtoactinshareholders1inter

42、estsby:A. shareholderelectionofaboardofdirectorswhoselectmanagement.B. thethreatofatakeoverbyanotherfirm.C. compensationcontractsthattiecompensationtocorporatesuccess.D. BothAandB.E. Alloftheabove.50. TheSecuritiesExchangeActof1934focuseson:A. allstocktransactions.B. salesofexistingsecurities.C. iss

43、uanceofnewsecurities.D. insidertrading.E. FederalDepositInsuranceCorporation(FDIC)insurance.51. ThebasicregulatoryframeworkintheUnitedStateswasprovidedby:A.theSecuritiesActof1933.B. theSecuritiesExchangeActof1934.C. themonetarysystem.D. AandB.E. Alloftheabove.52. TheSecuritiesActof1933focuseson:A. a

44、llstocktransactions.B. salesofexistingsecurities.C. issuanceofnewsecurities.D. insidertrading.E. FederalDepositInsuranceCorporation(FDIC)insurance.53. Inalimitedpartnership:A. eachlimitedpartner'sliabilityislimitedtohisnetworth.B. eachlimitedpartner'sliabilityislimitedtotheamountheputintothe

45、partnership.C. eachlimitedpartner'sliabilityislimitedtohisannualsalary.D. thereisnolimitationonliability;onlyalimitationonwhatthepartnercanearn.E. Noneoftheabove.54. Accountingprofitsandcashflowsare:A. generallythesamesincetheyreflectcurrentlawsandaccountingstandards.B. generallythesamesinceacco

46、untingprofitsrefleetwhenthecashflowsarereceived.C.generallynotthesamesinceGAAPallowsforrevenuerecognitionseparatefromthereceiptofcashflows.D. generallynotthesamebecausecashinflowsoccurbeforerevenuerecognition.E. Bothcandd.EssayQuestions55. Listandbrieflydescribethethreebasicquestionsaddressedbyafina

47、ncialmanager56. Whatadvantagesdoesthecorporateformoforganizationhaveoversoleproprietorshipsorpartnerships?57. Ifthecorporateformofbusinessorganizationhassomanyadvantagesoverthesoleproprietorship,whyisitsocommonforsmallbusinessestoinitiallybeformedassoleproprietorships?58. Whatshouldbethegoalofthefin

48、ancialmanagerofacorporation?Why?59. Doyouthinkagencyproblemsariseinsoleproprietorshipsand/orpartnerships?60. Assumeforamomentthatthestockholdersinacorporationhaveunlimitedliabilityforcorporatedebts.Ifso,whatimpactwouldthishaveonthefunctioningofprimaryandsecondarymarketsforcommonstock?61. Supposeyouo

49、wn100sharesofIBMstockwhichyouintendtoselltoday.Sinceyouwillsellitinthesecondarymarket,IBMwillreceivenodirectcashflowsasaconsequenceofyoursale.Why,then,shouldIBM'smanagementcareaboutthepriceyougetforyourshares?62. Onethinglenderssometimesrequirewhenloaningmoneytoasmallcorporationisanassignmentoft

50、hecommonstockascollateralontheloan.Then,ifthebusinessfailstorepayitsloan,theownershipofthestockcertificatescanbetransferreddirectlytothelender.Whymightalenderwantsuchanassignment?Whatadvantageofthecorporateformoforganizationcomesintoplayhere?63. Whymightacorporationwishtolistitssharesonanationalexch

51、angesuchastheNYSEasopposedtoaregionalexchangeorNASDAQ?Chapter01IntroductiontoCorporateFinanceAnswerKeyMultipleChoiceQuestions1.Thepersongenerallydii'ectlyresponsiblefbroverseeingthetaxmanagement,costaccounting,financialaccounting,andinformationsystemfunctionsisthe:A.treasurer.B. director.C. cont

52、roller.D. chairmanoftheboard.E. chiefexecutiveofficer.Difficultyleve1:EasyTopic:CONTROLLERType:DEFINITIONS2. Thepersongenerallydiiectlyresponsibleforoverseeingthecashandcreditfunctions,financialplanning,andcapitalexpendituresisthe:A.,treasurer.B. director.C. controller.D. chairmanoftheboard.E. chief

53、operationsofficer.Difficultyleve1:EasyTopic:TREASURERType:DEFINITIONS3. Theprocessofplanningandmanagingafirm'slong-terminvestmentsiscalled:A. workingcapitalmanagement.B. financialdepreciation.C. agencycostanalysis.D. capitalbudgeting.E. capitalstructure.Difficultyleve1:EasyTopic:CAPITALBUDGETING

54、Type:DEFINITIONS4. Themixtureofdebtandequityusedbyafirmtofinanceitsoperationsiscalled:A. workingcapitalmanagement.B. financialdepreciation.C. costanalysis.D. capitalbudgeting.E-capitalstructure.Difficultyleve1:EasyTopic:CAPITALSTRUCTUREType:DEFINITIONS5. Themanagementofafirm'sshort-termassetsand

55、liabilitiesiscalled:A. workingcapitalmanagement.B. debtmanagement.C. equitymanagement.D. capitalbudgeting.E. capitalstructure.Difficultyleve1:EasyTopic:WORKINGCAPITALMANAGEMENTType:DEFINITIONS6. Abusinessownedbyasingleindividualiscalleda:A. corporation.B. soleproprietorship.C. generalpartnership.D.

56、limitedpartnership.E. limitedliabilitycompany.Difficultyleve1:EasyTopic:SOLEPROPRIETORSHIPType:DEFINmONS7. Abusinessformedbytwoormoreindividualswhoeachhaveunlimitedliabilityforbusinessdebtsiscalleda:A. corporation.B. soleproprietorship.C. generalpartnership.D. limitedpartnership.E. limitedliabilityc

57、ompany.Difficultyleve1:EasyTopic:GENERALPARTNERSHIPType:DEFINITIONS8. Thedivisionofprofitsandlossesamongthemembersofapartnershipisformalizedinthe:A. indemnityclause.B. indenturecontract.C. statementofpurpose.H_partnershipagreement.E. groupcharter.Difficultyleve1:EasyTopic:PARTNERSHIPAGREEMENTType:DEFINITIONS9. Abusinesscreatedasadistinctlegalentitycomposedofoneormoreindividualsorentitiesisca