| Capital Budgeting Includes | Evaluation of Size, Timing and Risk of Future cash flows |
| What is a working capital decision? | How Much Cash should the firm keep in reserve? |
| If you accept a job as a domestic security analyst for a brokerage firm, you are most likely working in which one of the following financial areas? | Investments |
| The primary goal of financial management is to maximize which one of the following for a corporation? | Market value of existing stock |
| Which one of the following transactions occurred in the primary market? | South Wind Products sold 1,000 shares of newly issued stock to Mike. |
| Who owns and operates a company on their own. Fully liable. | Sole Proprietorship |
| Auction Market | Has a physical trading floor |
| What applies to a sole proprietorship? | Obtaining additional equity is dependent on the owner’s personal finances. |
| Limited liability companies are primarily designed to: | provide limited liability while avoiding double taxation. |
| Which one of the following correctly defines a common chain of command within a corporation? | The controller reports directly to the chief financial officer. |
| A limited liability company: | prefers its profits be taxed as personal income to its owners. |
| Which one of the following is contained in the corporate bylaws? | Procedures for electing corporate directors |
| Which one of the following best describes the primary intent of the Sarbanes-Oxley Act of 2002? | Increase protection against corporate fraud |
