Sample_Questions-chapter1 - Sample Questions Chapter 1 1....

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Sample Questions – Chapter 1 1. The process of planning and managing a firm’s long-term investments is called: d a. working capital management. b. financial depreciation. c. agency cost analysis. d. capital budgeting. e. capital structure. 2. A business formed by two or more individuals who each have unlimited liability for business debts is called a: c a. corporation. b. sole proprietorship. c. general partnership. d. limited partnership. e. limited liability company. 3. The primary goal of financial management is to: b a. maximize current dividends per share of the existing stock. b. maximize the current value per share of the existing stock. c. avoid financial distress. d. minimize operational costs and maximize firm efficiency. e. maintain steady growth in both sales and net earnings. 4. Which one of the following is a capital budgeting decision? b a. determining how much debt should be borrowed from a particular lender b. deciding whether or not to open a new store c. deciding when to repay a long-term debt d. determining how much inventory to keep on hand e. determining how much money should be kept in the checking account
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This note was uploaded on 03/18/2011 for the course FIN 615 taught by Professor Yan during the Spring '11 term at New York Institute of Technology-Westbury.

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Sample_Questions-chapter1 - Sample Questions Chapter 1 1....

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