Finance Chapter One: Overview of Finance

Descrição

Quiz sobre Finance Chapter One: Overview of Finance, criado por Angie Koslowski em 26-09-2015.
Angie Koslowski
Quiz por Angie Koslowski, atualizado more than 1 year ago
Angie Koslowski
Criado por Angie Koslowski mais de 8 anos atrás
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Resumo de Recurso

Questão 1

Questão
The main goal of the financial manager is to increase the firm's overall profits
Responda
  • True
  • False

Questão 2

Questão
In a corporation, profits are generally measured in terms of earnings per share
Responda
  • True
  • False

Questão 3

Questão
There is a positive correlation that exists between risk and return. The higher the risk of an investment, the higher the required return will be on that investment.
Responda
  • True
  • False

Questão 4

Questão
A firm's earnings are a true representation of cash flows available to the stockholders
Responda
  • True
  • False

Questão 5

Questão
Agency costs are fees that are paid by the management of a corporation to compensate any investor that feels that they have suffered a loss due to the agency problem.
Responda
  • True
  • False

Questão 6

Questão
Because of tax benefits, financial managers prefer cash flows later rather than sooner
Responda
  • True
  • False

Questão 7

Questão
The ethical behavior of the financial manager has a substantial impact on the shareholder's wealth maximization concept
Responda
  • True
  • False

Questão 8

Questão
Information asymmetry means that all market participants have exactly the same information set with which to make decisions.
Responda
  • True
  • False

Questão 9

Questão
The best deals in the market will go to the first investor who can recognize them and act on them
Responda
  • True
  • False

Questão 10

Questão
The required rate of return is what you think you will get
Responda
  • True
  • False

Questão 11

Questão
Which of the following is not one of the primary activities of the financial manager?
Responda
  • Making financing decisions
  • Prepare financial statements
  • Make investment decisions
  • Perform financial analysis

Questão 12

Questão
The main goal of the financial manager is to
Responda
  • maximize profit
  • maximize shareholder wealth
  • minimize costs

Questão 13

Questão
___________ can be defined as the art and science of managing money
Responda
  • economics
  • finance
  • accounting
  • banking

Questão 14

Questão
When the risk of an investment is high, the rate of return required by the investor will be
Responda
  • moderate
  • high
  • low
  • equal to a 30 day T-bill

Questão 15

Questão
The wealth of the shareholders of a corporation is represented by
Responda
  • price of stock
  • earnings per share
  • profits
  • cash flows

Questão 16

Questão
If the managers of a company are not the owners of the company, they are considered
Responda
  • directors
  • shareholders
  • insiders
  • agents

Questão 17

Questão
Agency costs pose the biggest problem for
Responda
  • directors
  • shareholders
  • insiders
  • agents

Questão 18

Questão
The largest provider of funds in the financial system is
Responda
  • individuals
  • businesses
  • government agencies
  • Bill Gates

Questão 19

Questão
Investments, markets and institutions, and corporate finance are
Responda
  • not related
  • closely related
  • only moderately related
  • not normally thought of as "finance"

Questão 20

Questão
The problem with profit maximization is that it is
Responda
  • short sighted
  • ignores risk
  • ignores timing of cash flows
  • all of the above

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