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1、Chapter 01 - Introduction to Corporate FinanceChapter 01Introduction to Corporate Finance Multiple Choice Questions1.Which one of the following terms is defined as the management of a firms long-term investments?A.working capital managementB.financial allocationC.agency cost analysisD.capital budget
2、ingE.capital structure2.Which one of the following terms is defined as the mixture of a firms debt and equity financing?A.working capital managementB.cash managementC.cost analysisD.capital budgetingE.capital structure3.Which one of the following is defined as a firms short-term assets and its short
3、-term liabilities?A.working capitalB.debtC.investment capitalD.net capitalE.capital structure4.A business owned by a solitary individual who has unlimited liability for its debt is called a:A.corporation.B.sole proprietorship.C.general partnership.D.limited partnership.E.limited liability company.5.
4、A business formed by two or more individuals who each have unlimited liability for all of the firms business debts is called a:A.corporation.B.sole proprietorship.C.general partnership.D.limited partnership.E.limited liability company.6.A business partner whose potential financial loss in the partne
5、rship will not exceed his or her investment in that partnership is called a:A.generally partner.B.sole proprietor.C.limited partner.D.corporate shareholder.E.zero partner.7.A business created as a distinct legal entity and treated as a legal person is called a:A.corporation.B.sole proprietorship.C.g
6、eneral partnership.D.limited partnership.E.unlimited liability company.8.Which one of the following terms is defined as a conflict of interest between the corporate shareholders and the corporate managers?A.articles of incorporationB.corporate breakdownC.agency problemD.bylawsE.legal liability9.A st
7、akeholder is:A.a person who owns shares of stock.B.any person who has voting rights based on stock ownership of a corporation.C.a person who initially founded a firm and currently has management control over that firm.D.a creditor to whom a firm currently owes money.E.any person or entity other than
8、 a stockholder or creditor who potentially has a claim on the cash flows of a firm.10.Which of the following questions are addressed by financial managers?I. How should a product be marketed?II. Should customers be given 30 or 45 days to pay for their credit purchases?III. Should the firm borrow mor
9、e money?IV. Should the firm acquire new equipment?A.I and IV onlyB.II and III onlyC.I, II, and III onlyD.II, III, and IV onlyE.I, II, III, and IV11.Which one of the following functions should be the responsibility of the controller rather than the treasurer?A.daily cash depositB.income tax returnsC.
10、equipment purchase analysisD.customer credit approvalE.payment to a vendor12.The controller of a corporation generally reports directly to the:A.board of directors.B.chairman of the board.C.chief executive officer.D.president.E.vice president of finance.13.Which one of the following correctly define
11、s the upward chain of command in a typical corporate organizational structure?A.The vice president of finance reports to the chairman of the board.B.The chief executive officer reports to president.C.The controller reports to the president.D.The treasurer reports to the vice president of finance.E.T
12、he chief operations officer reports to the vice president of production.14.Which one of the following is a capital budgeting decision?A.determining how many shares of stock to issueB.deciding whether or not to purchase a new machine for the production lineC.deciding how to refinance a debt issue tha
13、t is maturingD.determining how much inventory to keep on handE.determining how much money should be kept in the checking account15.Which of the following should a financial manager consider when analyzing a capital budgeting project?I. project start up costsII. timing of all projected cash flowsIII.
14、 dependability of future cash flowsIV. dollar amount of each projected cash flowA.I and IV onlyB.I, II, and IV onlyC.I, II, and III onlyD.II, III, and IV onlyE.I, II, III, and IV16.Which one of the following is a capital structure decision?A.determining which one of two projects to acceptB.determini
15、ng how to allocate investment funds to multiple projectsC.determining the amount of funds needed to finance customer purchases of a new productD.determining how much debt should be assumed to fund a projectE.determining how much inventory will be needed to support a project17.The decision to issue additional shares of stock is an example of which one of the following?A.working capital managementB
