Exam1 FIN370 Winter 2009 - A Key

Exam1 FIN370 Winter 2009 - A Key - Exam 1 FIN370 Winter...

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

View Full Document Right Arrow Icon
Exam 1 FIN370 Winter 2009 Version - A Key 1. The process of managing a firm's long-term investments is called: a. capital structure management. b. asset allocation. c. risk management. D . capital budgeting. e. working capital management. BLOOMS TAXONOMY QUESTION TYPE: KNOWLEDGE LEARNING OBJECTIVE NUMBER: 1 LEVEL OF DIFFICULTY: BASIC Ross - Chapter 001 #1 SECTION: 1.2 TOPIC: CAPITAL BUDGETING TYPE: DEFINITIONS 2. Capital structure refers to the: a. combination of short-term and long-term assets held by a firm. B . mixture of debt and equity a firm uses to finance its operations. c. types of long-term assets a firm employs in its operations. d. amount of cash versus other short-term assets held by a firm. e. average amount of cash equivalents held by a firm. BLOOMS TAXONOMY QUESTION TYPE: KNOWLEDGE LEARNING OBJECTIVE NUMBER: 1 LEVEL OF DIFFICULTY: BASIC Ross - Chapter 001 #2 SECTION: 1.2 TOPIC: CAPITAL STRUCTURE TYPE: DEFINITIONS
Image of page 1

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

View Full Document Right Arrow Icon
3. A business organization owned by two or more individuals or entities, each of whom has unlimited liability for the firm's debts, is called a: BLOOMS TAXONOMY QUESTION TYPE: KNOWLEDGE LEARNING OBJECTIVE NUMBER: 3 LEVEL OF DIFFICULTY: BASIC Ross - Chapter 001 #5 SECTION: 1.3 TOPIC: GENERAL PARTNERSHIP TYPE: DEFINITIONS 4. The potential conflict of interest between a firm's owners and its managers is referred to as a(n): BLOOMS TAXONOMY QUESTION TYPE: KNOWLEDGE LEARNING OBJECTIVE NUMBER: 4 LEVEL OF DIFFICULTY: BASIC Ross - Chapter 001 #7 SECTION: 1.5 TOPIC: AGENCY PROBLEM TYPE: DEFINITIONS 5. Working capital management includes which of the following? I. establishing the inventory level II. deciding when to pay suppliers III. determining the amount of cash needed on a daily basis IV. establishing credit terms for customers BLOOMS TAXONOMY QUESTION TYPE: KNOWLEDGE LEARNING OBJECTIVE NUMBER: 1 LEVEL OF DIFFICULTY: INTERMEDIATE Ross - Chapter 001 #20 SECTION: 1.2 TOPIC: WORKING CAPITAL MANAGEMENT TYPE: CONCEPTS
Image of page 2
6. A sole proprietorship: A . is relatively easy to create. b. involves significant legal costs during the formation process. c. has an unlimited life. d. is taxed as a separate legal entity. e. can generally raise significant capital from non-owner sources. BLOOMS TAXONOMY QUESTION TYPE: KNOWLEDGE LEARNING OBJECTIVE NUMBER: 3 LEVEL OF DIFFICULTY: BASIC Ross - Chapter 001 #22 SECTION: 1.3 TOPIC: SOLE PROPRIETORSHIP TYPE: CONCEPTS
Image of page 3

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

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

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern