Introduction to Corporate Finance

What is corporation?

• legal entity that separate from its owner

• legal entity that have only 1 owner

• legal entity that have few owners

• legal entity with limited partnership

Which is NOT types of firms?

• Sole Proprietorship

• Limited Liability Companies

• Ownership

• Partnership

Which firm has unlimited owner liability?

• Limited Liability Companies

• Limited Partnership

• Sole proprietorship

• Corporation

The commonly accepted goal of an MNC is to

• maximize short-term earnings.

• minimize risk.

• maximize shareholder wealth.

• all of the answers

Which of the following theories suggests that firms seek to penetrate new markets over time?

• theory of comparative advantage

• product cycle theory

• imperfect markets theory

• none

Capital budgeting decisions are used to determine how to raise the cash necessary for investments.

• True

• False

The term of capital structure refers to:

• the mix of long-term debt and equity financing.

• the length of time needed to repay debt.

• the type of assets a firm acquires.

• is part of making investment decision.

The lecturer for this subject name is

• Dr. Suzillah Sidek

• Dr. Suzila Sidek

• Dr. Nurshila Ameen

• Dr. Norsuzila Sidek

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