Pages

Tuesday, January 11, 2011

Mcqs on Introduction to business finance



Question 1.
__________ is concerned with the acquisition, financing, and management of assets with some overall goal in mind.


Open Hint for Question 1 in a new window.
 
Financial management End of Question 1



Question 2.
Jensen and Meckling showed that __________ can assure themselves that the __________ will make optimal decisions only if appropriate incentives are given and only if the __________ are monitored.


Open Hint for Question 2 in a new window.
 
End of Question 2



Question 3.
__________ is concerned with the maximization of a firm's earnings after taxes.


Open Hint for Question 3 in a new window.
 

Profit maximization



Question 4.
What is the most appropriate goal of the firm?


Open Hint for Question 4 in a new window.
 
Shareholder wealth maximization. End of Question 4



Question 5.
Which of the following statements is correct regarding profit maximization as the primary goal of the firm?


Open Hint for Question 5 in a new window.
 

End of Question 5
Profit maximization is concerned more with maximizing net income than the stock price.


Question 6.
__________ is concerned with the branch of economics relating the behavior of principals and their agents.


Open Hint for Question 6 in a new window.
 
Agency theory End of Question 6



Question 7.
A concept that implies that the firm should consider issues such as protecting the consumer, paying fair wages, maintaining fair hiring practices, supporting education, and considering environmental issues.


Open Hint for Question 7 in a new window.
 
Social responsibility End of Question 7



Question 8.
Which of the following is not normally a responsibility of the treasurer of the modern corporation but rather the controller?


Open Hint for Question 8 in a new window.
 
Budgets and forecasts End of Question 8



Question 9.
The __________ decision involves determining the appropriate make-up of the right-hand side of the balance sheet.


Open Hint for Question 9 in a new window.
 
financing End of Question 9



Question 10.
To whom does the Treasurer most likely report?


Open Hint for Question 10 in a new window.
 
Chief Financial Officer. End of Question 10



Question 11.

The authors of your textbook suggest that you need to understand financial management even if you have no intention of becoming a financial manager. One reason is that the successful manager of the not-too-distant future will need to be much more of a __________ who has the knowledge and ability to move not just vertically within an organization but horizontally as well. Developing __________ will be the rule, not the exception.

Open Hint for Question 11 in a new window.
 
team player; cross-functional capabilities End of Question 11



Question 12.
The __________ decision involves a determination of the total amount of assets needed, the composition of the assets, and whether any assets need to be reduced, eliminated, or replaced.


Open Hint for Question 12 in a new window.
 
investment End of Question 12



Question 13.
How are earnings per share calculated?


Open Hint for Question 13 in a new window.
 

End of Question 13

Use the income statement to determine earnings after taxes (net income) and divide by the number of common shares outstanding.

Question 14.
According to the text's authors, what is the most important of the three financial management decisions?


Open Hint for Question 14 in a new window.
 
Investment decision. End of Question 14



Question 15.
The __________ decision involves efficiently managing the assets on the balance sheet on a day-to-day basis, especially current assets.


Open Hint for Question 15 in a new window.
 
asset management End of Question 15



Question 16.
Which of the following is not a perquisite (perk)?


Open Hint for Question 16 in a new window.
 
Salary. End of Question 16



Question 17.
Which of the following is not normally a responsibility of the controller of the modern corporation?


Open Hint for Question 17 in a new window.
 
Asset management End of Question 17



Question 18.
All constituencies with a stake in the fortunes of the company are known as __________.


Open Hint for Question 18 in a new window.
 
stakeholders End of Question 18



Question 19.
Which of the following statements is not correct regarding earnings per share (EPS) maximization as the primary goal of the firm?


Open Hint for Question 19 in a new window.
 
EPS maximization is concerned with maximizing net income. End of Question 19



Question 20.
__________ is concerned with the maximization of a firm's stock price.


Open Hint for Question 20 in a new window.
 
Shareholder wealth maximization End of Question 20



Question 21.
Corporate governance success includes three key groups. Which of the following represents these three groups?


Open Hint for Question 21 in a new window.
 
Board of Directors, executive officers, and common shareholders.

3 comments:

  1. This comment has been removed by the author.

    ReplyDelete
  2. Remarkable blog! I have no words to praise, it has really allured me.Knowledge First Financial Review

    ReplyDelete
  3. It is an amazing post.Very useful to me.I liked it .And Swipe Your Credit Card And have Immediate cash With Cheapest Costs.
    Provide Your ID Card Photo Copy As A Document Resistant.If you Want more details kindly credit card cash

    ReplyDelete