2023年兹维博迪金融学第二版试题库TB

ChapterOneFinancialEconomicsThischaptercontains48multiplechoicequestions,20shortproblemsand5longerproblems.MultipleChoiceTheprimarygoalofcorporatemanagementisto________shareholderwealth.minimizemaximizeleveragemitigateAnswer:(b)A________stockmarketimposes________disciplineonmanagerstotakeactionstomaximizethemarketvalueofthefirm’spetitive,strongdispersed,weakmature,nodispersed,strongAnswer:(a)3.The________formisespeciallywellsuitedtotheseparationofownershipandmanagementoffirmsbecauseitallowsrelativelyfrequentchangesinownersbysharetransferwithoutaffectingtheoperationsofthefirm. corporatesoleproprietorshippartnershiphouseholdAnswer:(a)4.________isanythingthathaseconomicvalue. ApartnershipAnassetAbalancesheetAnincomestatementAnswer:(b)

5.Ahousehold’swealthornetworthismeasuredbythevalueofits________minusits________.liabilities;assetsassets;liabilitiesstocks;bondsbonds;liabilitiesAnswer:(b)6.Thebranchoffinancedealingwithfinancialdecisionsoffirmsiscalled________or________.investments;internationalfinancemarkets;institutionsbusinessfinance;institutionsbusinessfinance;corporatefinanceAnswer:(d)7.Bondspromise________cashpayments,whilestockspaythe________valueleftoverafterallotherclaimantshavebeenpaid.variable;residualresidual;fixedfixed;residualfixed;variableAnswer:(c)8.Theday-to-dayfinancialaffairsofthefirmareusuallyreferredtoas________.workingcapitalmanagementcapitalstructurecapitalbudgetingstrategicplanningAnswer:(a)9.Adisadvantageofthesoleproprietorshipisthefactthatthesoleproprietorhas________.limitedliabilityforthedebtsofthefirmunlimitedliabilityforthedebtsofthefirmexpensivecoststoestablishthefirmlimitedauthorityovertheday-to-daybusinessdecisionsofthefirmAnswer:(b)

10.IntheU.S.corporationswithconcentratedownershiparecalled________andcorporationswithbroadlydispersedownershiparecalled________.privatecorporations;publiccorporationspubliccorporations;privatecorporationspubliccorporations;monopoliesprivatecorporations;stateownedcorporationsAnswer:(a)11.Billyownsahouseworth$350,000andhasa$55,000bankaccount.Billyowes$270,000tothebankonahomemortgageloanandhasa$12,000creditcarddebtoutstanding.CalculateBilly’snetworth.$135,000$123,000$497,000$37,000Answer:(b)12.Marloweownsahouseworth$150,000,acarworth$25,000andhasan$18,000bankaccount.Marloweowes$135,000tothebankonahomemortgageloan,$18,000onthecarloanandhasan$18,000creditcarddebtoutstanding.CalculateMarlowe’snetworth.$58,000$123,000$22,000$37,000Answer:(c)13.Anadvantageofthecorporateformofownershipis________. noliabilityunlimitedliabilitylimitedliabilityCEOliabilityAnswer:(c)

14.Inthecorporateform,theseparatedstructurecreatesthepotentialfor________betweenownersandmanagers.aconflictofinterestincreasedtransactionalcostsstabilityinrelationsnoneoftheaboveAnswer:(a)15.Allofthefollowingarereasonsforhavingaseparationofmanagementandownershipofthefirmexcept:the“goingconcern”effectfavorstheseparatedstructureprofessionalmanagersmaybefoundwhopossessasuperiorabilitytorunthebusinessitpreventsthepossibilityofaconflictofinterestbetweentheownersandmanagementitallowsforsavingsinthecostofinformationgatheringAnswer:(c)16.________involvestheevaluationofcostsandbenefitsspreadoutovertime,anditislargelyafinancialdecision-makingprocess.StockvaluationBondvaluationInventorycostingStrategicplanningAnswer:(d)17.Shareholderwealthmaximizationdependsonallofthefollowingexcept:productiontechnologymarketinterestratesriskaversionmarketriskpremiumsAnswer:(c)18.Aproblemwithusingtheprofitmaximizationcriterionis________.decidingwhichperiod’sprofitistobemaximizedthedefinitionof“maximizeprofits”isambiguousthefailuretoconsiderriskalloftheaboveAnswer:(d)

19.Theexistenceofawellfunctioningstockmarketfacilitatestheefficientseparationoftheownershipandmanagementoffirms,sincestockpricescanbesubstitutedforexternalinformationabout________.thefirm’sproductiontechnologythewealth,preferences,andotherinvestmentopportunitiesoftheownersthehistoriccostsofthefirm’sinfrastructurethefirm’sabilitytomeetitsprojectedgoalsAnswer:(b)20.Oneplacetolookforastatementofthegoalsofacorporation’stopmanagersisthe________.balancesheetincomestatementannualreportbankruptcyfilingAnswer:(c)21.Intheabsenceofastockmarket,managerswouldrequireinformationthatis________toobtain.costlyifnotimpossiblecostlessreadilyavailabletime-consumingbutinexpensiveAnswer:(a)22.Management’staskismademucheasierwhenitcanobservethe________ofitsownandotherfirms’shares.bookpricesmarketpriceshistoricalpricessecuritypricesAnswer:(b)

23.________areentitledtoashareofanyofthedistributionsfromthecorporationsuchascashdividends.SoleproprietorsGeneralpartnersProfessionalmanagersShareholdersAnswer:(d)24.________isthefounderofmodernportfoliotheory.HarryMarkowitzMertonMillerWilliamSharpeBillGatesAnswer:(a)25.InGermany,publiccorporationsareidentifiableby________afterthecompanyname,whereasprivatecompaniesaredenotedby________.PLC,Inc.GmbH,AGAG,GmbHSpA,GmbHAnswer:(c)26.IntheUnitedKingdom,publiccorporationsareidentifiableby________afterthecompanyname,whereasprivatecompaniesaredenotedby________.Inc,PLCLTD,PLCAG,GmbHPLC,LTDAnswer:(d)27.Shareholderselect________whointurnselect________torunthebusiness.aboardofdirectors;atreasureraboardofdirectors;managersmanagers;aboardofdirectorsaboardofdirectors;accountantsAnswer:(b)

28.Inacompetitivestockmarket,________offer(s)anotherimportantmechanismforaligningtheincentivesofmanagerswiththoseofshareholders.takeoversincreasedtaxesliquidationincreasedliabilityAnswer:(a)29.Ifaraiderisinterestedinmakingaprofitthroughthetakeoverofaprospectivefirm,theonlyexpensesthatneedbeincurredare________.thecostofidentifyingamismanagedfirmthecostofacquiringthefirm’ssharesphysicalcapitalboth(a)and(b)Answer:(d)30.Thecostofidentifyingamismanagedfirmcanbelowiftheraideriswhichofthefollowing:asupplieracustomeracompetitoralloftheaboveAnswer:(d)31.Takeovermechanismscanmosteffectivelybereducedby________.directivesfromtheboardofdirectorsmediainterventiongovernmentpoliciespublicdisapprovalAnswer:(c)

32.Thechieffinancialofficer(CFO)ofacorporationnormallyreportstothe________ofthecompany.controllertreasurerchiefexecutiveofficerchairmanoftheboardofdirectorsAnswer:(c)33.Allofthefollowingdepartmentstypicallyreporttothechieffinancialofficer(CFO)except:marketingfinancialplanningtreasurycontrolAnswer:(a)34.Thetreasurer’sjobincludesmanagingallofthefollowingexcept:thefirm’sexposuretocurrencyandinterestraterisksthetaxdepartmentrelationswiththeexternalinvestmentcommunitytheanalysisofproposedmergersandacquisitionsAnswer:(d)35.Theactivitiesofthevicepresidentforfinancialplanningincludeallofthefollowingexcept:analyzingproposedmergersanalyzingproposedspin-offspreparinginternalreportscomparingplannedandactualcostsanalyzingmajorcapitalexpendituresAnswer:(c)Whichofthefollowingstatementsismostcorrect?Theshareholdersofacorporationelectmanagerswhointurnselectaboardofdirectorstorunthebusiness.Partnershipsdonotpaycorporatetax.Adisadvantageofthecorporationisunlimitedliability.Thegovernmentispowerlesstodiscouragecorporatetakeovers. Answer:(b)

Foratypicalfirm,whichofthefollowingstatementsismostcorrect?TheCFOhasthreedepartmentsreportingtohim:financialplanning,treasuryandcontrol.Thetreasureroverseestheaccountingandauditingactivitiesofthefirm.Thecontrollerhasresponsibilityformanagingthefinancingactivitiesofthefirmandforworkingcapitalmanagement.TheCEOisaseniorvicepresidentwithresponsibilityforallthefinancialfunctionsinthefirm.Answer:(a)Whichofthefollowingarefinancialdecisionsafirmhastomake?financingdecisionscapitalbudgetingdecisionsworkingcapitaldecisionsalloftheaboveAnswer:(d)Thecontroller’sjobincludesresponsibilityfor________.relationswiththeexternalinvestmentcommunitypreparationoffinancialstatementsforusebyshareholders,creditorsandregulatoryauthoritiesanalysisofproposedmergers,acquisitionsandspin-offsalloftheaboveAnswer:(b)Thebasicunitofanalysisincapitalbudgetingisthe________.financingprojectinvestmentprojectstrategicprojectvariableprojectAnswer:(b)Thestepsinvolvedinanycapitalbudgetingprocessinclude:evaluatingprojectsdecidingwhichprojectstoundertakeidentifyingideasfornewinvestmentprojectsalloftheaboveAnswer:(d)

Preferredstock,bonds,andconvertiblesecuritiesarealsoknownas________.nonmarketableclaimsstandardizedsecuritiesvariablesecuritiescovenantsAnswer:(b)Thebasicunitofanalysisincapitalstructuredecisionsisthe________.firmasawholeinvestmentprojectfirm’spersonnelfinancialsystemAnswer:(a)Whichoneofthefollowingcorrectlyordersthestepsinvolvedincapitalstructuredecisions?determiningafeasiblefinancingplan;identifyingnewideasforinvestmentprojectsdeterminingtheoptimalfinancingmix;determiningafeasiblefinancingplanidentifyingideasforinvestmentprojects;determiningtheoptimalfinancingmixdeterminingafeasiblefinancingplan;determiningtheoptimalfinancingmixAnswer:(d)Whichofthefollowingisnotafinancialfunctionofacorporation?investorrelationstaxadministrationprovisionofcapitalregulatorylegislationAnswer:(d)Whichofthefollowingfunctionsmaybecategorizedasadministrationoffunds?custodialresponsibilitiestaxadministrationinternalauditingalloftheaboveAnswer:(a)

Investorrelationsincludes:governmentreportingestablishmentandmaintenanceofcommunicationswithcompanystockholdersrelationswithtaxingagenciesconsultationwithandadvicetoothercorporateexecutivesAnswer:(b)Oscarownsaboatworth$2million,ahouseworth$5.5.millionandhas$900,000inabankaccount.Oscarowes$1.1milliontothebankontheboatloan,$2milliononthehomeloanandhas$20,000creditcarddebt.CalculateOscar’snetworth.$3.12million$5.28million$7.28million$8.4millionAnswer:(b)ShortProblemsGiveabriefdefinitionofthefinancialsystem.Answer:Afinancialsystemisdefinedasthesetofmarketsandotherinstitutionsusedforfinancialcontractingandtheexchangeofassetsandrisks.Listthemarketsthatthefinancialsystemlikelyincludes.Answer:Afinancialsystemincludesthemarketsforstocks,bondsandotherfinancialinstruments,financialintermediaries,financialservicefirmsandtheregulatorybodiesthatgovernalloftheseinstitutions.Brieflydescribethedistinctionbetweenphysicalcapitalandfinancialcapital.Answer:Physicalcapitalincludesitemssuchasbuildings,machineryandotherintermediateproductsusedintheproductionprocess.Financialcapital,however,includesstocks,bondsandloansusedtofinancetheacquisitionofphysicalcapital.4.Giveabriefdescriptionofthewiderangeoffinancialinstrumentsandclaimsafirmcanissue.Answer:Theseincludecommonstock,preferredstock,bondsandconvertiblesecurities(standardizedsecuritiesthatcanbetradedinorganizedmarkets).Financialinstrumentsandclaimscanalsoincludenonmarketableclaimssuchasbankloans,employeestockoptions,leasesandpensionliabilities.Siggyownsahouseworth$200,000,acarworth$25,000andhasan$18,000bankaccount.Healsohasfurnitureworth$4,000andjewelryworth$10,000.However,Siggyowes$145,000tothebankonahomemortgageloan,$17,000onthecarloan,$40,000onstudentloansandhasan$16,000creditcarddebtoutstanding.CalculateSiggy’snetworth.Answer:NetWorth=TotalAssets–TotalLiabilities =($200,000+$25,000+$18,000+$4,000+$10,000)–($145,000+$17,000+$40,000+$16,000) =$39,000Brieflylisttheproblemsassociatedwithprofitmaximizationasthechiefgoalofcorporatemanagers.Answer:Theprofit-maximizationcriterionhastwoproblemsassociatedwithit.Thefirstisthatitisdifficulttodeterminewhichperiod’sprofitistobemaximizediftheproductionprocessrequiresmanyperiods.Secondly,ifeitherfuturerevenuesorexpensesareuncertain,thenwhatexactlyisthemeaningof“maximizeprofits”ifprofitsaredescribedbyaprobabilitydistribution?Keciaownsahouseworth$220,000,acarworth$20,000andhasa$13,000bankaccount.Shealsohasfurnitureworth$8,000.However,Keciaowes$165,000tothebankonahomemortgageloan,$17,000onthecarloan,$50,000onstudentloansandhasan$18,000creditcarddebtoutstanding.CalculateKecia'snetworth.Answer:NetWorth=TotalAssets–TotalLiabilities=($220,000+$20,000+$13,000+$8,000)–($165,000+$17,000+$50,000+$18,000)=$261,000-$250,000=$11,000Giveanexampleofapotentialconflictofinterestthatcanarisebetweenownersandmanagersofafirm.Answer:Managersbeingconcernedwiththeirownpersonalwelfaremayleadtoconcernaboutjobsecurityinthelongrun.Thisconcernaboutlongrunsurvivalmaycausemanagerstolimittheriskincurredbythefirmandmakeotherdecisionsnotwiththeobjectiveofshareholderwealthmaximization.Whatusedoestheexistenceofastockmarketservetothemanagerofafirm?Answer:Observingitsownandotherfirms’marketpriceofshareshelpsitmakedecisionsaboutmaximizingthefirm’svaluetoitsshareholders.Iftherewasnotastockmarket,thenmanagerswouldberequiredtoobtaininformationthatiscostly,ifnotimpossible,toobtain.Thisincludesthewealth,preferencesandotherinvestmentopportunitiesoftheowners.

Outlinetheroleofthetakeoverinaligningtheincentivesofmanagerswiththoseofshareholders.Answer:Thethreatofatakeoverprovidesastrongincentiveforcurrentmanagerstoactintheinterestsofthefirm’scurrentshareholdersbymaximizingmarketvalue.Ifmanagersfailtomaximizethemarketvalueofthefirm’sshares,thefirmwillbevulnerabletoatakeoverinwhichthemanagersmaylosetheirjobs.Outlinetheroleofthechieffinancialofficer(CFO)inacorporation.Answer:TheCFOisaseniorvicepresidentwithresponsibilityforallthefinancialfunctionsinthefirmandreportsdirectlytotheCEO.ThreedepartmentsreporttotheCFO:financialplanning,treasury,andcontrol.Discusstheroleofthetreasurerinacorporation.Answer:Thetreasurerhasresponsibilityformanagingthefinancingactivitiesofthefirmandforworkingcapitalmanagement.Thetreasurerisresponsibleformanagingrelationswiththeexternalinvestorcommunity,managingthefirm’sexposuretocurrencyandinterestraterisks,andmanagingthetaxdepartment.13.Discussthetasksperformedbythecontrollerofacorporation.Answer:Thecontrolleroverseestheaccountingandauditingtasksofthefirm.Thecontrollerisresponsibleforthepreparationofinternalreportscomparingplannedandactualcosts,revenues,andprofitsfromthecorporation’svariousbusinessunits.Thecontrollerwillalsobeinvolvedwithpreparationoffinancialstatementsforusebyshareholders,creditorsandregulatoryauthorities.Discusswhyvotingrightsforshareholdersarenotadequatetocompelmanagerstoactinthebestinterestsoftheshareholders.Answer:Becauseamajorbenefitoftheseparatedstructureisthattheownerscanremainrelativelyuninformedabouttheoperationsofthefirm,itisnotapparenthowtheseownerscouldknowwhethertheirfirmisbeingmismanaged.Thevalueofvotingrightsisfurthercastintodoubtifownershipofthefirmiswidelydispersed.Ifthatisthesituation,thentheholdingsofanysingleownerarelikelytobesosmallthatheorshewouldnotincurtheexpensetobecomeinformedandtoconveythisinformationtotheotherowners.Isitpossibleforgovernmenttoreducetheeffectivenessofthetakeovermechanism?Answer:Yes.Itispossibleforgovernmentpolicytopreventtheformationofmonopoliesinvariousproductmarkets–asinthecaseoftheUnitedStatesDepartmentofJustice,whichcantakelegalactionundertheantitrustlawstopreventmergersandacquisitionsthatmightreducecompetition.Intermsofthefinancialfunctionsofacorporation,whatresponsibilitiesdoadministrationoffundsentail?Answer:Managementofcash;maintenanceofbankingarrangements;receipt,custodyanddisbursementofthecompany’smoniesandsecurities;creditandcollectionmanagement;managementofpensionfunds;managementofinvestmentsandcustodialresponsibilities.Discusstheliabilityapartnershipfaces.Answer:Unlessotherwisespecified,allpartnershaveunlimitedliabilityasinthesoleproprietorship.However,itispossibletolimittheliabilityforsomepartnerscalled“limitedpartners”.Atleastoneofthepartners,calledthegeneralpartner,hasunlimitedliabilityforthedebtsofthefirm.Describetheadvantagesofthecorporateformofbusinessorganization.Answer:Thecorporateformofownershiphastheadvantagethatownershipsharescanusuallybetransferredwithoutdisruptingthebusiness.Limitedliabilityisalsoanotheradvantageofthecorporateform.Inthiscase,ifthecorporationfailstopayitsdebts,thecreditorscanseizetheassetsofthecorporationbuthavenorecoursetothepersonalassetsoftheshareholders.Brieflyoutlinetheprocessofcapitalbudgeting.Answer:Theprocessofcapitalbudgetingincludesidentifyingideasfornewinvestmentprojects,evaluatingthem,decidingwhichonestoundertake,andthenimplementingthem.Brieflydiscusstheprocessofworkingcapitalmanagement.Answer:Workingcapitalmanagementreferstotheday-to-dayfinancialaffairsofthebusiness,suchaswhethertoextendcredittocustomersordemandcashondeliveryormanagingcashflow.LongerProblemsDescribethefourbasictypesoffinancialdecisionsfacedbyhouseholders.Answer:Investmentdecisions–whethertoinvestinstocksorbondsConsumption/SavingsDecisions–howmuchtosaveforone’sretirementorachild’seducation Riskmanagementdecisions–whethertobuydisabilityinsuranceFinancingdecisions–whattypeofloantoadoptinordertofinancethepurchaseofahomeorcar.

Giveabriefdescriptionofeachofthefourmainareasoffinancialdecision-makinginabusiness.Answer: StrategicPlanning:Evaluatingthecostsandbenefitsassociatedwiththefirm’sbusinessline,whichmaychangeovertime.CapitalBudgeting:Identifyingideasfornewinvestmentprojects,evaluatingthem,decidingwhichonestoundertake,andthenimplementingthem.CapitalStructure:Theinitialstepisdecidinguponafeasiblefinancingplanforthefirm.Thenextdecisioninvolvestheoptimaldebt/equitymixtouse.WorkingCapitalManagement:Theday-to-dayaffairsofthebusiness.Thisincludespayingbillsastheycomedue,collectingfromcustomers,managingthefirm’scashflowstoensurethatoperatingcashflowsdeficitsarefinancedandthatcashflowsurplusesareefficientlyinvestedtoearnagoodreturn.Explainthefivebasicreasonsforseparatingthemanagementfromtheownershipofanenterprise.Answer:Professionalmanagersmaybefoundwhohaveasuperio