FIN 300 problem sets - A good capital budgeting decision is...

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A good capital budgeting decision is one in which the benefits are worth more to the firm than the cost of the asset. Selected  Answer:  Tru e Answers:  Tru e False Question 2 0 out of 5 points Bonds represent debt so bondholders are lenders to the firm. Selected  Answer:  False Answers:  True False Question 3 5 out of 5 points The greatest number of businesses in the United States are corporations. Selected  Answer:  False Answers: True  False Question 4 5 out of 5 points Corporate income taxes decrease the value of the firm to its stockholders. Selected  Answer:  True Answers:  Tru e False Question 5 5 out of 5 points A corporate Treasurer usually handles the cash management function while the corporate  Controller handles accounting and taxes. Selected  Answer:  True Answers:  Tru e False
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Question 6 5 out of 5 points What are the two basic sources of funds for all businesses? Selected Answer: Answers: Cash and inventory Revenue and expenses   Debt and equity Hope and change Question 7 5 out of 5 points What is net working capital? Selected Answer: Answers:   Current assets minus current liabilities Total assets minus total liabilities Working assets plus working  liabilities Total liabilities plus total equity Question 8 5 out of 5 points What are the three major decisions that most concern financial managers? Selected Answer: Answers: Inventory decision, expense decision, board of directors decision Capital structure decision, banking decision, salary decision Sales decision, operating decision, and financing decision   Capital budgeting decision, financing decision, and working capital  decision Question 9 5 out of 5 points
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What are the three forms of business organization discussed in this chapter? Selected Answer: Answers: corporation, LLC, and partnership   sole proprietorship, partnership, and corporation sole proprietorship, partnership, accounting and law  firms accounting and law firms, LLC, S-corporation Question 10 5 out of 5 points Which of the following is an advantage of the sole-proprietorship? Selected Answer: Answers:   The owners keep all of the profits and do not have to share decision- making authority. The sole proprietor has unlimited liability for the debts of the business. The amount of capital that can be raised is unlimited by the owner's  wealth. It is very easy to transfer ownership in the company. Question 11 5 out of 5 points Who are the owners in a corporation and how is their ownership represented?
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