FIN3300 Final Exam Review

Which of the following is *not* one of the five basic areas of finance?

• Corporate Finance

• Financial Engineering

• Investments

• Fintech

What is the primary goal of financial management?

• Maximize profits

• Minimize taxes

• Maximize shareholder wealth

• Increase market share

Which decision involves managing a firm's short-term assets and liabilities?

• Capital budgeting

• Working capital management

• Capital structure

• Equity financing

What form of business organization offers limited liability and pass-through taxation?

• Sole proprietorship

• Corporation

• Partnership

• LLC

In which type of market are new securities issued?

• Secondary market

• Auction market

• Dealer market

• Primary market

Which of the following is part of the accounting equation?

• Assets = Liabilities + Expenses

• Revenues = Assets - Liabilities

• Assets = Liabilities + Equity

• Equity = Assets + Liabilities

What does liquidity refer to?

• The amount of profit after taxes

• The ease of conversion to cash without losing value

• The total long-term debt of a company

• The number of shares issued

What is the difference between market value and book value?

• Market value uses historical cost

• Book value reflects current asset prices

• Market value shows actual worth; book value uses accounting values

• Book value includes future projections

What are the components of cash flow from assets?

• Operating cash flow, capital spending, and changes in net income

• Net income, depreciation, and taxes

• Capital spending, dividends, and interest paid

• Operating cash flow, capital spending, and change in net working capital

Which section of the statement of cash flows includes interest and dividend payments?

• Operating activities

• Investing activities

• Financing activities

• All of the above