Preview

Fundamentals of Corporate Finance 9e

Satisfactory Essays
Open Document
Open Document
82689 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Fundamentals of Corporate Finance 9e
http://helpyoustudy.info

Chapter 01 - Introduction to Corporate Finance

Chapter 01 Introduction to Corporate Finance Answer Key

Multiple Choice Questions

1. Which one of the following terms is defined as the management of a firm 's long-term investments? A. working capital management B. financial allocation C. agency cost analysis D. capital budgeting E. capital structure Refer to section 1.1

AACSB: N/A Difficulty: Basic Learning Objective: 1-1 Section: 1.1 Topic: Capital budgeting

2. Which one of the following terms is defined as the mixture of a firm 's debt and equity financing? A. working capital management B. cash management C. cost analysis D. capital budgeting E. capital structure Refer to section 1.1

AACSB: N/A Difficulty: Basic Learning Objective: 1-1 Section: 1.1 Topic: Capital structure

1-20

http://helpyoustudy.info

Chapter 01 - Introduction to Corporate Finance

3. Which one of the following is defined as a firm 's short-term assets and its short-term liabilities? A. working capital B. debt C. investment capital D. net capital E. capital structure Refer to section 1.1

AACSB: N/A Difficulty: Basic Learning Objective: 1-1 Section: 1.1 Topic: Working capital

4. A business owned by a solitary individual who has unlimited liability for its debt is called a: A. corporation. B. sole proprietorship. C. general partnership. D. limited partnership. E. limited liability company. Refer to section 1.2

AACSB: N/A Difficulty: Basic Learning Objective: 1-3 Section: 1.2 Topic: Sole proprietorship

1-21

http://helpyoustudy.info

Chapter 01 - Introduction to Corporate Finance

5. A business formed by two or more individuals who each have unlimited liability for all of the firm 's business debts is called a: A. corporation. B. sole proprietorship. C. general partnership. D. limited partnership. E. limited liability company. Refer to section 1.2

AACSB: N/A Difficulty: Basic Learning Objective: 1-3 Section: 1.2 Topic:

You May Also Find These Documents Helpful

  • Better Essays

    Lit1 Task 1

    • 1519 Words
    • 5 Pages

    GENERAL PARTNERSHIP: An agreement formed by two or more persons. They are simple and inexpensive to create and operate, but the owners are all personally liable for any debts or legal actions…

    • 1519 Words
    • 5 Pages
    Better Essays
  • Satisfactory Essays

    Lit1 Task 310.1.2-01-06

    • 1471 Words
    • 6 Pages

    LIABILITY – Partners are personally liable for all of the business debts and obligations. This also includes court judgments.…

    • 1471 Words
    • 6 Pages
    Satisfactory Essays
  • Powerful Essays

    Acct504 Study Questions

    • 12050 Words
    • 49 Pages

    5. In which forms of business organization are the owners personally liable for all the debts of the business? A. Sole proprietorships and corporations B. Sole proprietorships and partnerships C. Partnership and corporation D. All of the answer choices are correct…

    • 12050 Words
    • 49 Pages
    Powerful Essays
  • Good Essays

    Acc/531 Week 4

    • 4142 Words
    • 17 Pages

    |5. Investing activities | Related to the external financing of the company. | ____ |…

    • 4142 Words
    • 17 Pages
    Good Essays
  • Satisfactory Essays

    LIT1 Task 1 - A

    • 1253 Words
    • 6 Pages

    Liability – Each person has unlimited personal liability for the business. Like a sole proprietorship, any debt incurred by the business will have to be covered personally by the partners.…

    • 1253 Words
    • 6 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Business Law

    • 486 Words
    • 2 Pages

    b:In business law, sole proprietorships have unlimited liability, meaning that the owner is personally responsible for the debts and obligations of the business, and lenders may look to the owner's personal assets for payment of these obligations.…

    • 486 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    b. If you needed to get funding for your company, would you prefer to get debt funding or equity funding? Explain why you would prefer this type. (2-4 sentences. 2.0 points)…

    • 573 Words
    • 3 Pages
    Satisfactory Essays
  • Better Essays

    LIT1 Task 1

    • 3141 Words
    • 13 Pages

    Sole Proprietorship: This is a type of business is where the business and the owner are one in…

    • 3141 Words
    • 13 Pages
    Better Essays
  • Good Essays

    A partnership, sole proprietorship, and incorporation are three types of business ownership. (Miller 444) Sole proprietorships can be operated and owned by the same person. Then again, an entrepreneur may claim sole proprietorships; however they may acquire a supervisor to run the business daily routine. The sole proprietor tracks every profit made from the business and is responsible for any losses that may occur. Of the three types of ownership, the sole proprietorship is the most demanding. When considering a business one of the crucial starting points should be the registration and business name. (Miller 445) The name…

    • 924 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    FINC330 BUSINESS FINANCE

    • 2067 Words
    • 9 Pages

    The ________ is the time period that elapses from the point when the firm makes the outlay to purchase raw materials on account to the point when payment is made to the supplier of the goods.…

    • 2067 Words
    • 9 Pages
    Satisfactory Essays
  • Powerful Essays

    C. Capital and repayment plan: earnings, short-term and/or long-term borrowing, long-term equity, plan to repay borrowed funds or provide return on investment to equity funds…

    • 1430 Words
    • 6 Pages
    Powerful Essays
  • Good Essays

    a. what is the firm’s weighted-average cost of capital at various combinations of debt and equity, given the fallowing information?…

    • 303 Words
    • 2 Pages
    Good Essays
  • Satisfactory Essays

    Accounting Words

    • 288 Words
    • 2 Pages

    Limited Liability Company: Entity where the business, and not the proprietor, is liable for the company’s debts.…

    • 288 Words
    • 2 Pages
    Satisfactory Essays
  • Better Essays

    Members of a partnership have unlimited liability for debts and obligations that arise in the business. Business creditors of a partnership may pursue the personal assets of a partner in an effort to recover business debts. Shareholders of an S corporation have limited liability for company debts and obligations. The personal assets of an S corporation shareholder may not be pursued by business creditors in reference to business debts and obligations of the company…

    • 1485 Words
    • 6 Pages
    Better Essays
  • Satisfactory Essays

    A corporation is a distinct legal entity that has rights that are not the same as the other members. An alternative kind of business is a Limited Liability Corporation. A Limited Liability Corporation “is a business structure allowed by state statute” (IRS, 2011). A Limited Liability Corporation in principle is a non-human unit. A Limited Liability Corporation is considered a combination of a corporation and a partnership as each owner has restricted personal liability for debts and each owner has the advantage of pass-through taxes. Limited Liability Corporations have to abide by specific rules depending on the state the business is filed. The proprietors of a Limited Liability Corporation are called…

    • 574 Words
    • 2 Pages
    Satisfactory Essays