Corporate Finance 101

Finance is concerned with the process institutions, markets, and instruments involved in the transfer of money among and between individuals, businesses and government.

• True

• False

Managerial finance is concerned with design and delivery of advice and financial products to individuals, business, and government.

• True

• False

Managerial finance

• involves tasks such as budgeting, financial forecasting, cash management, and funds procurement.

• involves the design and delivery of advice and financial products.

• recognizes funds on an accrual basis.

• All of the above

The board of directors is responsible for managing day‑to‑day operations and carrying out the policies established by the chief executive officer.

• True

• False

Which of the following would be considered an advantage of the SOLE PROPRIETORSHIP form of business organization?

• unlimited life

• wide access to capital

• income taxed at only one level

• pooled expertise

The __________ function focuses on raising capital to support a company's operations and investment programs.

• financing

• capital budgeting

• corporate governance

• risk management

Long-term debt instruments used by both government and business are known as

• bonds

• equities

• stocks

• bills

The major securities traded in the capital markets are ____.

• stocks and bonds

• bonds and commercial paper.

• commercial paper and Treasury bills

• Treasury bills and certificates of deposit

The primary goal of a publicly-owned corporation should be to:

• minimizing risk

• maximizing profit

• maximizing shareholders' wealth

• minimizing market share

What is the subject name for BAC2644?

• Principle of Finance

• Financial Management

• Principle of Corporate Finance

• Corporate Finance