2010-02-18_201058_tjtucker

2010-02-18_201058_tjtucker - 1) Maximization of shareholder...

Info iconThis preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
1) Maximization of shareholder wealth is a concept in which A. increased earnings is of primary importance. B. optimally increasing the long-term value of the firm is emphasized . C. virtually all earnings are paid as dividends to common stockholders. D. profits are maximized on a quarterly basis. 2) Corporate governance is the A. relationship and exercise of oversight by the board of directors of the company . B. governance of the company by the board of directors with a focus on social responsibility. C. operation of a company by the chief executive officer (CEO) and other senior executives on the management team. D. relationship between the chief financial officer and institutional investors. 3) What is the primary goal of financial management? A. Increased earnings B. Maximizing shareholder wealth C. Minimizing risk of the firm D. Maximizing cash flow 4) The statement of cash flows does NOT include which of the following sections? A. cash flows from operating activities B. cash flows from investing activities C. cash flows from financing activities D. cash flows from sales activities 5) Which of the following is an inflow of cash? A. funds spent in normal business operations B. the sale of the firm's bonds C. the purchase of a new factory D. the retirement of the firm's bonds 6) An increase in investments in long-term securities will: A. increase cash flow from investing activities. B. increase cash flow from financing activities. C. decrease cash flow from investing activities . D. decrease cash flow from financing activities. 7) The most rigorous test of a firm's ability to pay its short-term obligations is its A. current ratio.
Background image of page 1

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

View Full DocumentRight Arrow Icon
B. debt-to-assets ratio. C. quick ratio. D. times-interest-earned ratio. 8) A quick ratio that is much smaller than the current ratio reflects A. a small portion of current assets is in inventory. B. that the firm will have a high inventory turnover. C. a large portion of current assets is in inventory. D. that the firm will have a high return on assets. 9) In examining the liquidity ratios, the primary emphasis is the firm's A. ability to effectively employ its resources. B. ability to pay short-term obligations on time. C. overall debt position. D. ability to earn an adequate return. 10) A firm has current assets of $75,000 and total assets of $375,000. The firm's sales are $900,000. The firm's fixed asset turnover is A. 3.0x B. 2.4x C. 12.0 x D. 5.0x
Background image of page 2
11) Refer to the figure above. The firm's debt to asset ratio is A. 58% . B. 25%. C. 33%. D. 48%.
Background image of page 3

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

View Full DocumentRight Arrow Icon
Refer to the figure above. The firm's inventory turnover ratio is A. 10x. B.
Background image of page 4
Image of page 5
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 12/21/2011 for the course ECON 101 taught by Professor All during the Spring '11 term at SUNY Albany.

Page1 / 11

2010-02-18_201058_tjtucker - 1) Maximization of shareholder...

This preview shows document pages 1 - 5. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online