Finance Test 1

the person responsible for overseeing the cash and credit functions financial planning and captial expenditures is the treasurer
the mixture of debt and equity used by a firm to finance its operations is called capital structure
the management of a firms short term assets and liabilties is called working capital management
a business created a distinct legal entity composed of one or more individuals or entities is called corporation
a business entity operated and taxed like a partnership but with limited liability for the owners is called a limited liability company
the primary goal of financial management is to maximize the current value per share of the existing stock
a conflict of interest between the stockholders and management of a firm is called the agency problem
the sarbanes oxeley act of 2002 is intended to protect investors from corporate abuses
which of the following is a capital budgeting decision deciding whether or not to open a new store
which of the following statements concerning a sole proprietorship is correct? may be forced to sell his/her personal assets to pay company debts
a general partner has more management responsibility than a limited partner
which one of the following statements is correct concerning corporations the largest firms are usually corporations
which one of the following business types is best suited to raising large amounts of capital corporations
the decisions made by financial managers should all be ones which increase the market value of the existing owner’s equity
which form of business structure faces the greatest agency problems corporations
financial markets are composed of capital markets and money markets
the primary market is defined as the market for new issues
the NYSE and NASDAQ are both secondary markets
in a limited partnership each limited partners liability is limited to the amount he put into the partnership
accounting profits and cash flows are generally not the same since GAAP allows for revenue recognition separate from the receipt of cash flows

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