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

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

13. Which one of the following correctly defines the upward chain of command in a typical corporate organizational structure?

D. The treasurer reports to the vice president of finance.

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,

E. The chief operations officer reports to the vice president of production.

14. Which one of the following is a capital budgeting decision?

B. deciding whether or not to purchase a new machine for the production line

A. determining how many shares of stock to issue

C. deciding how to refinance a debt issue that is maturing

D. determining how much inventory to keep on hand

E. determining how much money should be kept in the checking account

16. Which one of the following is a capital structure decision?

D. determining how much debt should be assumed to fund a project

A. determining which one of two projects to accept

B. determining how to allocate investment funds to multiple projects

C. determining the amount of funds needed to finance customer purchases of a new product

E determining how much inventory will be needed to support a project

17. The decision to issue additional shares of stock is an example of which one of the following?

B. net working capital decision

19. Which one of the following is a working capital management decision?

B. determining whether to pay cash for a purchase or use the credit offered by the supplier

A. determining the amount of equipment needed to complete a job

C. determining the amount of long-term debt required to complete a project

D. determining the number of shares of stock to issue to fund an acquisition

E. determining whether or not a project should be accepted

20. Which one of the following statements concerning a sole proprietorship is correct?

C. The owner of a sole proprietorship is personally responsible for all of the company's debts.

A. A sole proprietorship is designed to protect the personal assets of the owner.

B. The profits of a sole proprietorship are subject to double taxation.

D. There are very few sole proprietorships remaining in the U.S. today.

E. A sole proprietorship is structured the same as a limited liability company.

21. Which one of the following statements concerning a sole proprietorship is correct?

E. It is easy to create a sole proprietorship.

A. The life of a sole proprietorship is potentially unlimited.

B. A sole proprietor can generally raise large sums of capital quite easily.

C. Transferring ownership of a sole proprietorship is easier than transferring ownership of a corporation.

D. A sole proprietorship is taxed the same as a C corporation.

23. Which one of the following best describes the primary advantage of being a limited partner instead of a general partner?

E. maximum loss limited to the capital invested

B. active participation in the firm's activities

D. greater control over the business affairs of the partnership

24. A general partner:

A. is solely responsible for all the partnership debts.

B. has no say over a firm's daily operations.

C. faces double taxation whereas a limited partner does not.

D. has a maximum loss equal to his or her equity investment.

E. receives a salary in licu of a portion of the profits.

25. A limited partnership:

D. has a greater ability to raise capital than a sole proprietorship.

B. can opt to be taxed as a corporation.

C. terminates at the death of any limited partner.

L. consists solely of limited partners.

28. Which one of the following statements is correct?

C. Corporations can raise large amounts of capital generally easier than partnerships can.

A. The majority of firms in the U.S. are structured as corporations.

B. Corporate profits are taxable income to the shareholders when earned.

D. Stockholders face no potential losses related to their corporate investment.

L. Corporate shareholders elect the corporate president.

29. Which one of the following statements is correct?

B. Both sole proprietorship and partnership income is taxed as individual income.

A. A general partnership is legally the same as a corporation.

D. All business organizations have bylaws.

E. Only firms organized as sole proprietorships have limited lives.

C. Partnerships are the most complicated type of business to form.

31. Corporate bylaws:

F. determine how a corporation regulates itself.

A. must be amended should a firm decide to increase the number of shares authorized.

B. cannot be amended once adopted.

C. define the name by which the firm will operate.

D. describe the intended life and purpose of the organization.

32. Which one of the following characteristics applies to a limited liability company?

C. taxed similar to a partnership

A. available only to firms having a single owner

B. limited liability for limited partners only

D. taxed similar to a C corporation

E. all income generated is totally tax-free

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MULTIPLE CHOICE QUESTION

30 sec • 1 pt

1. Which one of the following terms is defined as the management of a firm's long-term investments?

A. working capital management

C. agency cost analysis

E. capital structure

D. capital budgeting

B. financial allocation

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

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

A. working capital management

C. cost analysis

D. capital budgeting

E. capital structure

B. cash management

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

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

B. debt

C. investment capital

E. capital structure

D. net capital

A. working capital

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

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

corporation.

sole proprietorship

general partnership.

limited partnership

limited liability company.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

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

A. corporation.

C. general partnership.

D. limited partnership.

F. limited liability company

B. sole proprietorship.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

6. A business partner whose potential financial loss in the partnership 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.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

7. A business created as a distinct legal entity and treated as a legal "person" is called a:

A. corporation.

B. sole proprietorship.

C. general partnership.

D. limited partnership

E. unlimited liability company.

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tcdn1

1. Which one of the following terms is defined as the management of a firm's long-term investments?

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

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

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

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

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

7. A business created as a distinct legal entity and treated as a legal "person" is called a:

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

9. A stakeholder is:

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 more money?
IV. Should the firm acquire new equipment?

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tcdn1

1. Which one of the following terms is defined as the management of a firm's long-term investments?

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

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

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

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

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

7. A business created as a distinct legal entity and treated as a legal "person" is called a:

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

9. A stakeholder is:

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 more money?IV. Should the firm acquire new equipment?

Access all questions and much more by creating a free account

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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 more money?
IV. Should the firm acquire new equipment?