exam 1 v 2 - Exam 1 Version 2 Key 1. The difference between...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
Exam 1 Version 2 Key 1. The difference between an ordinary annuity and an annuity due is the: a. number of annuity payments. b. amount of each annuity payment. c. frequency of the annuity payments. d. interest rate applied to the annuity payments. E . timing of the annuity payments. BLOOMS TAXONOMY QUESTION TYPE: KNOWLEDGE LEARNING OBJECTIVE NUMBER: 1 LEVEL OF DIFFICULTY: BASIC Ross - Chapter 005 #20 SECTION: 5.2 TOPIC: ANNUITIES TYPE: CONCEPTS 2. The primary goal of financial management is to maximize the: a. current net income. b. net working capital. c. the number of shares outstanding. D . market value of the existing stock. e. revenue growth. BLOOMS TAXONOMY QUESTION TYPE: KNOWLEDGE LEARNING OBJECTIVE NUMBER: 2 LEVEL OF DIFFICULTY: BASIC Ross - Chapter 001 #36 SECTION: 1.4 TOPIC: GOAL OF FINANCIAL MANAGEMENT TYPE: CONCEPTS
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
3. Which of the following are the key methods of aligning management goals with shareholder interests? I. increasing management salaries based on a nationally recognized inflation measure II. replacing management if shareholders' interests are not given top priority III. basing management salaries on the total revenues of the firm IV. tying management compensation to the market value of the firm's stock a. I and III only b. I and IV only C . II and IV only d. I, II, and III only e. II, III, and IV only BLOOMS TAXONOMY QUESTION TYPE: COMPREHENSION LEARNING OBJECTIVE NUMBER: 4 LEVEL OF DIFFICULTY: INTERMEDIATE Ross - Chapter 001 #45 SECTION: 1.5 TOPIC: AGENCY PROBLEM TYPE: CONCEPTS 4. The control of a corporation ultimately lies with the: a. chief financial officer. b. company president. C . company stockholders. d. chairman of the board. e. chief executive officer. BLOOMS TAXONOMY QUESTION TYPE: KNOWLEDGE LEVEL OF DIFFICULTY: BASIC Ross - Chapter 001 #46 SECTION: 1.5 TOPIC: CORPORATE CONTROL TYPE: CONCEPTS 5. The primary market is: A . the market where all new issues of debt and equity securities are sold to the public. b. the NYSE. c. a reference to any auction market. d. a reference to any dealer market. e. any large stock exchange accessible to the general public for trading either debt or equity securities. BLOOMS TAXONOMY QUESTION TYPE: KNOWLEDGE LEVEL OF DIFFICULTY: BASIC Ross - Chapter 001 #56 SECTION: 1.6 TOPIC: PRIMARY MARKET TYPE: CONCEPTS
Background image of page 2
6. Paul is the owner of Paul's Cabinets, which is a sole proprietorship. The firm cannot pay its bills because a large customer defaulted on payment. Which one of the following statements is correct given this situation? a. The creditors of Paul's Cabinets can only collect payment if Paul's Cabinets receives payment from its customer. b. The only course of action the creditors of Paul's Cabinets has is to sell the assets of Paul's Cabinets. c. The creditors of Paul's Cabinets can assume the assets of Paul's Cabinets but only in an amount that exceeds
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 16

exam 1 v 2 - Exam 1 Version 2 Key 1. The difference between...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online