| 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 |
