Ch1 - Ch1 Student: _ 1. Finance, generally, deals with: I)...

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Ch1 Student: ___________________________________________________________________________ 1. Finance, generally, deals with: I) Money; II) Markets; III) People A. I only B. I and II only C. I and III only D. I, II and III 2. This book is mainly about: A. financial decisions made by households B. financial decisions made by corporations C. financial decisions made by governments D. none of the above 3. The following are examples of the United States-based corporations except: I) Boeing; II) Microsoft; III) Bank of America; IV) Sony A. I only B. I and II only C. I, II, and III only D. IV only 4. The following are examples of foreign-based corporations except: I) British Petroleum; II) General Electric; III) Sony; IV) Volkswagen A. I only B. II only C. II and III only 5. Shareholders of a corporation may be, among others: I) Individuals; II) Pension Funds; III) Insurance Companies A. I only B. I and II only C. II only D. I, II and III 6. Generally, a corporation is owned by the: I) Managers; II) Board of Directors; III) Shareholders A. I only B. II and III C. III only D. I, II and III
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7. Corporations, potentially, have infinite life because: A. it is a legal entity B. of separation of ownership and management C. it has limited liability D. none of the above 8. Limited liability is an important feature of: A. Sole proprietorships B. Partnerships C. Corporations D. All of the above 9. As a legal entity a corporation can perform the following functions except: I) borrow money; II) lend money; III) sue and be sued; IV) vote A. I and II only B. I, II, and III only C. IV only D. I, II, III and IV 10. The following are examples of intangible assets except: A. Building B. Trademarks C. Patents D. Technical expertise 11. The following are examples of tangible assets except: A. Machinery B. Factories C. Trademarks D. Offices 12. A firm's investment decision is also called the: A. Financing decision B. Liquidity decision C. Capital budgeting decision D. None of the above 13. The following are examples of financial assets except: A. Common stock B. Bank loan C. Preferred stock D. Buildings
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14. The treasurer usually oversees the following functions of a corporation except: I) Preparation of financial statements; II) Investor relationships; III) Cash management; IV) raising new capital A. I only B. I and II only C. II, III and IV only D. III only 15. The treasurer is usually responsible the following functions of a corporation: I) Tax obligations; II) Investor relationships; III) Cash management; IV) raising new capital A. I only B. I and II only C. II, III and IV only D. I, II, III and IV 16. The controller usually oversees the following functions of a corporation: I) Preparation of financial statements; II) Internal accounting; III) Cash management and IV) Taxes A. I, II and IV only B. III only C. I and II only D. II and III 17. The controller is usually responsible for the following functions of a corporation
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This note was uploaded on 11/02/2011 for the course FIN 500 taught by Professor Binder during the Summer '11 term at Ill. Chicago.

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Ch1 - Ch1 Student: _ 1. Finance, generally, deals with: I)...

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