TCDN

Which one of the following terms is defined as the management of a firm's longterm investments ?

• wworking capital management

• finacial allocation

• agency cost analysis

• capital budgeting

Which one of the following terms is defined as the mixture of a firm's debt and equity financing ?

• working capital management

• cash management

• capital budgeting

• capital structure

Which one of the following is defined as a firm's short-term assets and its short-term liabilities ?

• working capital

• debt

• investment capital

• net capital

• capital structure

A business owned by a solitary individual who has unlimited liability for its debt is called a:

• corporation

• sole proprietorship

• general partnership

• limited liability company

A business formed by two or more individuals who each have unlimited liability for all of the firm's business debts is called a:

• corporation

• sole proprietorship

• general partnership

• limited partnership

A business partner whose potential financial loss in the partnership will not exceed his or her investment in that partnership is called a:

• generally partner

• sole propietor

• limited partner

• corporate shareholder

A business created as a distinct legal entity and treated as a legal 'person' is called a:

• corporation

• general partnership

• sole propietorship

• unlimited liability company

• limited partnership

Which one of the following terms is defined as a conflict of interest between the corporate shareholders and the corporate managers ?

• corporate breakdown

• agency problem

• bylaws

• legal liability

• articles of incorporation

A stakeholder is:

• a person who owns shares of stock

• any person who has voting rights based on stock ownership of a corporate

• a creditor to whom a firm currently owes money

• any person or entity other than a stockholder or creditor who potentially has a claim on the cash flows of a firm

Which of the following questionsare addressed by financial managers ?

1. 1. How should a product be marked ?

2. 2. Should customers be given 30 or 45 days to pay for their credit purchases ?

3. 3. Should the firm borrow more money ?

4. 4. Should the firm acquire new equipment ?

• 1 and 4 only

• 2 3 only

• 1 2 3 only

• 2 3 4 only