OTHER NAME(S): ______________________________________
STUDENT ID: ______________________________________
PAPER ID: 00615
THE UNIVERSITY OF NEW SOUTH WALES
AUSTRALIAN SCHOOL OF BUSINESS
SCHOOL OF BANKING AND FINANCE
FINS1613: BUSINESS FINANCE
SEMESTER 1 2012
1. TIME ALLOWED – 3 hours
2. THIS EXAMINATION PAPER HAS 19 PAGES
3. TOTAL NUMBER OF QUESTIONS – 45 Multiple Choice
4. TOTAL MARKS AVAILABLE – 45
5. MULTIPLE CHOICE QUESTIONS ARE 1 (ONE) MARK PER QUESTION.
6. THE EXAMINATION PAPER HAS 1 PART.
a. You must complete a Generalised Answer Sheet for this exam
b. Complete the top portion of the generalized answer sheet, providing your family name, initials, and student number.
c. Answer all multiple-choice questions using the generalised answer sheet.
Clearly fill in the response oval using a 2B pencil.
7. CANDIDATES MAY BRING A UNSW APPROVED CALCULATOR TO THE
8. THIS PAPER MAY NOT BE RETAINED BY THE CANDIDATE
1 of 19
1. Which of the following types of firm owners have limited liability?
(i) A sole trader
(ii) A general partner in a Limited Partnership
(iii) A limited partner in a Limited Partnership
(iv) A shareholder of publically traded company
ii and iv only
ii, iii, and iv only
iii and iv only
all the above
2. Why in general do financial managers make financial decisions in a corporation, rather than the owners making these decisions themselves?
Financial managers are motivated by their salary and will only make decisions in the firm’s best interests
It is best for the control of the finances of a corporation to be in the hands of a disinterested third party
The owners may not be citizens or residents where the company is located
There are often many owners, and they can