Practice Midterm BUSI408 wsol

Practice Midterm BUSI408 wsol - SOLUTIONS Practice Midterm...

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SOLUTIONS Practice Midterm BUSI408 Page 1 of 66 h:\busi408 fall 2011\practice midterm busi408 wsol.docx 1. The management of a firm's short-term assets and liabilities is called: A. working capital management. B. debt management. C. equity management. D. capital budgeting. E. capital structure. Difficulty level: Easy Ross - Chapter 01 #5 Topic: WORKING CAPITAL MANAGEMENT Type: DEFINITIONS 2. The process of planning and managing a firm's long- term investments is called: A. working capital management. B. financial depreciation. C. agency cost analysis. D. capital budgeting. E. capital structure. Difficulty level: Easy Ross - Chapter 01 #3 Topic: CAPITAL BUDGETING Type: DEFINITIONS 3. The mixture of debt and equity used by a firm to finance its operations is called: A. working capital management. B. financial depreciation. C. cost analysis. D. capital budgeting. E. capital structure. Difficulty level: Easy Ross - Chapter 01 #4 Topic: CAPITAL STRUCTURE Type: DEFINITIONS 4. The primary goal of financial management is to: 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. Difficulty level: Easy Ross - Chapter 01 #13 Topic: FINANCIAL MANAGEMENT GOAL Type: DEFINITIONS 5. Which one of the following is a capital budgeting decision? 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 Difficulty level: Medium Ross - Chapter 01 #20 Topic: CAPITAL BUDGETING Type: CONCEPTS
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SOLUTIONS Practice Midterm BUSI408 Page 2 of 66 h:\busi408 fall 2011\practice midterm busi408 wsol.docx 6. Working capital management includes decisions concerning which of the following? I. accounts payable II. long-term debt III. accounts receivable IV. inventory A. I and II only B. I and III only C. II and IV only D. I, II, and III only E. I, III, and IV only Difficulty level: Medium Ross - Chapter 01 #23 Topic: WORKING CAPITAL MANAGEMENT Type: CONCEPTS 7. Working capital management: A. ensures that sufficient equipment is available to produce the amount of product desired on a daily basis. B. ensures that long-term debt is acquired at the lowest possible cost. C. ensures that dividends are paid to all stockholders on an annual basis. D. balances the amount of company debt to the amount of available equity. E. is concerned with the upper portion of the balance sheet. Difficulty level: Easy
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This note was uploaded on 02/27/2012 for the course BUSI 407 taught by Professor Bowen during the Spring '11 term at UNC.

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Practice Midterm BUSI408 wsol - SOLUTIONS Practice Midterm...

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