CHƯƠNG 5 goals and governance

Finance, generally, deals with: I) Money; II) Markets; III) People

• I only

• I and II only

• I and III only

• I, II and III

This book is mainly about:

• financial decisions made by households

• financial decisions made by corporations

• financial decisions made by governments

• none of the above

Shareholders of a corporation may be, among others: I) Individuals; II) Pension Funds; III) Insurance Companies

• I only

• I and II only

• II only

• I, II and III

Generally, a corporation is owned by the: I) Managers; II) Board of Directors; III) Shareholders

• I only

• II and III

• III only

• I, II and III

Corporations, potentially, have infinite life because:

• it is a legal entity

• of separation of ownership and management

• it has limited liability

• none of the above

Limited liability is an important feature of:

• Sole proprietorships

• Partnerships

• Corporations

• All of the above

As a legal entity a corporation can perform the following functions except: I) borrow money; II) lend money; III) sue and be sued; IV) vote

• I and II only

• I, II, and III only

• IV only

• I, II, III and IV

The following are examples of intangible assets except:

• Building

• Trademarks

• Patents

• Technical expertise

The following are examples of tangible assets except:

• Machinery

• Factories

• Trademarks

• Offices

A firm's investment decision is also called the:

• Financing decision

• Liquidity decision

• Capital budgeting decision

• None of the above