Finance Chapter One: Overview of Finance

Descripción

Test sobre Finance Chapter One: Overview of Finance, creado por Angie Koslowski el 26/09/2015.
Angie Koslowski
Test por Angie Koslowski, actualizado hace más de 1 año
Angie Koslowski
Creado por Angie Koslowski hace casi 9 años
23
0

Resumen del Recurso

Pregunta 1

Pregunta
The main goal of the financial manager is to increase the firm's overall profits
Respuesta
  • True
  • False

Pregunta 2

Pregunta
In a corporation, profits are generally measured in terms of earnings per share
Respuesta
  • True
  • False

Pregunta 3

Pregunta
There is a positive correlation that exists between risk and return. The higher the risk of an investment, the higher the required return will be on that investment.
Respuesta
  • True
  • False

Pregunta 4

Pregunta
A firm's earnings are a true representation of cash flows available to the stockholders
Respuesta
  • True
  • False

Pregunta 5

Pregunta
Agency costs are fees that are paid by the management of a corporation to compensate any investor that feels that they have suffered a loss due to the agency problem.
Respuesta
  • True
  • False

Pregunta 6

Pregunta
Because of tax benefits, financial managers prefer cash flows later rather than sooner
Respuesta
  • True
  • False

Pregunta 7

Pregunta
The ethical behavior of the financial manager has a substantial impact on the shareholder's wealth maximization concept
Respuesta
  • True
  • False

Pregunta 8

Pregunta
Information asymmetry means that all market participants have exactly the same information set with which to make decisions.
Respuesta
  • True
  • False

Pregunta 9

Pregunta
The best deals in the market will go to the first investor who can recognize them and act on them
Respuesta
  • True
  • False

Pregunta 10

Pregunta
The required rate of return is what you think you will get
Respuesta
  • True
  • False

Pregunta 11

Pregunta
Which of the following is not one of the primary activities of the financial manager?
Respuesta
  • Making financing decisions
  • Prepare financial statements
  • Make investment decisions
  • Perform financial analysis

Pregunta 12

Pregunta
The main goal of the financial manager is to
Respuesta
  • maximize profit
  • maximize shareholder wealth
  • minimize costs

Pregunta 13

Pregunta
___________ can be defined as the art and science of managing money
Respuesta
  • economics
  • finance
  • accounting
  • banking

Pregunta 14

Pregunta
When the risk of an investment is high, the rate of return required by the investor will be
Respuesta
  • moderate
  • high
  • low
  • equal to a 30 day T-bill

Pregunta 15

Pregunta
The wealth of the shareholders of a corporation is represented by
Respuesta
  • price of stock
  • earnings per share
  • profits
  • cash flows

Pregunta 16

Pregunta
If the managers of a company are not the owners of the company, they are considered
Respuesta
  • directors
  • shareholders
  • insiders
  • agents

Pregunta 17

Pregunta
Agency costs pose the biggest problem for
Respuesta
  • directors
  • shareholders
  • insiders
  • agents

Pregunta 18

Pregunta
The largest provider of funds in the financial system is
Respuesta
  • individuals
  • businesses
  • government agencies
  • Bill Gates

Pregunta 19

Pregunta
Investments, markets and institutions, and corporate finance are
Respuesta
  • not related
  • closely related
  • only moderately related
  • not normally thought of as "finance"

Pregunta 20

Pregunta
The problem with profit maximization is that it is
Respuesta
  • short sighted
  • ignores risk
  • ignores timing of cash flows
  • all of the above
Mostrar resumen completo Ocultar resumen completo

Similar

Teórias Sociológicas
yetorres
Raíz Cuadrada 75.281
JL Cadenas
CÁLCULO MENTAL
JL Cadenas
CIENCIAS AUXILIARES DE QUÍMICA ORGÁNICA
Luis Carrillo
Preguntas Módulo de Promoción de la Salud y Prevención de la Enfermedad
D. Valenzuela
Preguntas del Pensamiento Matemático 2
Raúl Fox
Reported Speech (I) - Estilo indirecto
Diego Santos
Lenguaje de programación.
Lina Melo
Clase Invertida paso a paso
Diego Santos
Repaso Romano
Lina Arevalo
CÁLCULO MENTAL - De Mapa Mental
JL Cadenas