Fin_pq1 - University of Houston-Victoria FIN 6352 Financial...

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FIN 6352 Financial Management FMQuiz01 Dr. Xavier Garza Gómez University of Houston-Victoria FIN 6352 Financial Management Review Quiz for Chapter 1 – Overview of Financial Management True-False 1 . The finance function is relatively independent of most other corporate functions. Market- ing decisions, for example, may affect the firm's need for funds but are not affected by conditions in financial markets or other financing issues. a. True b. False 2 . The form of organization for a business is not an important issue, as this decision has very little effect on the income and wealth of the firm's owners. a. True b. False 3 . Two disadvantages of a proprietorship are (1) the relative difficulty of raising new capital and (2) the owner's unlimited personal liability for the business' debts. a. True b. False 4 . If Firm A's business is to obtain savings from individuals and then invest them in financial assets issued by other firms or individuals, Firm A is a financial intermediary .
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