101-Chapter 1 Exercise

101-Chapter 1 Exercise - FIN 101 Exercises Chapter 1...

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FIN 101 Exercises 1 Chapter 1 Exercise Questions ________ 1. The chief financial officer of a corporation generally reports directly to the firm’s: a. chairman of the board. b. chief executive officer. c. president. d. shareholders. ________ 2. The decision concerning the types and amounts of items to be held in inventory is a _____ decision. a. working capital management b. capital budgeting c. capital structure d. portfolio management ________ 3. Which one of the following entities is considered a legal “person”? a. corporation b. general partnership c. limited partnership d. sole proprietorship ________ 4. Which of the following have unlimited personal liability for the debts of the business entity? a. general and limited partners b. sole proprietors and limited partners c. sole proprietors and general partners d. limited partners and common stockholders ________ 5. The goal of financial management is to maximize the: a. market value of the existing owners’ equity. b. current dividends. c. total assets owned by the firm. d. current net income. ________ 6. An agency problem is most apt to exist in which one of the following situations? a. an employee asks for a raise and is denied b. a management decision increases the market value of the firm’s stock c. a board member resigns for personal reasons
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101-Chapter 1 Exercise - FIN 101 Exercises Chapter 1...

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