B.A M

In this course, “business” is the legal operating form referred to as:

• partnership

• corporation

• sole prorietorship

• limited liability company

Which of the following roles is least likely to report to the CFO?

• treasurer

• VP of Marketing

• Pension Fund Manager

• All the above

Which of the following is most consistent with the concept of firm value
maximization?

• A. Maximizing profitability

• B. Minimizing the cost of financing

• Maximizing the present value of future cash flows

• D. Maximizing revenue through the use of innovative market campaigns

Firm value is negatively related to which of the following?
I. Cash Flow
II. Cash Flow Timing
III. Risk

• A. I

• B. I and II

• C. II and III

• D. I, II and III

Which of the following best describes a mechanism to mitigate conflicts of interest
that may exist between the stockholders of a firm and the firm’s management?

• A. Agency problem

• B. Ethical dilemma

• C. Corporate governance

• D. Board of director resolution

The way in which the firm positions itself relative to competitors and uses its
resources refers to

• strategy

• corporate governance

• low cost strategy

• differentiation strategy

Which of the following refers to the strategy of providing a unique good or service
to customers?

• low cost strategy

• low price strategy

• differentiation strategy

• profit Margin Optimization strategy

The tool used in strategic planning to assess attractive markets or product lines is
referred to as:

• SWOT A

• Competitive A

• Strategic managament

• BCG groth share matrix

Suppose a firm presently has a low market share in an industry with a low market
growth rate. This industry is referred to as a

• Dog

• star

• Cash cow

• question mark

In SWOT analysis, an external challenge is referred to as a(n):

• threat

• strength

• weakness

• opportunity