FIN 300 EXAM 3.docx - FIN 300 EXAM 3 A good capital budgeting decision is one in which the benefits are worth more to the firm than the cost of the

FIN 300 EXAM 3.docx - FIN 300 EXAM 3 A good capital...

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FIN 300 EXAM 3 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: TRUE Bonds represent debt so bondholders are lenders to the firm. Selected Answer: TRUE The greatest number of businesses in the United States are corporations. Selected Answer: Fals e Corporate income taxes decrease the value of the firm to its stockholders. Selected Answer: TRUE A corporate Treasurer usually handles the cash management function while the corporate Controller handles accounting and taxes. Selected Answer: TRUE What are the two basic sources of funds for all businesses? Selected Answer: Cash & Inventory, Revenue & Expenses, Debt and equity , Hope & Change What is net working capital? Selected Answer: Current assets minus current liabilities Answers:Current assets minus current liabilities, Total assets minus total liabilities, Working assets plus working liabilities, Total liabilities plus total equity What are the three major decisions that most concern financial managers?

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