Question Question 1 Which one of the following terms is defined

29 Jun Question Question 1 Which one of the following terms is defined

Question
Question 1

Which one of the following terms is defined as a conflict of interest between the corporate shareholders and the corporate managers? ________

A.

articles of incorporation

B.

corporate breakdown

C.

agency problem

D.

bylaws

E.

legal liability

Question 2

Which one of the following is a capital budgeting decision?

A.

determining how many shares of stock to issue

B.

deciding whether or not to purchase a new machine for the production line

C.

deciding how to refinance a debt issue that is maturing

D.

determining how much inventory to keep on hand

E.

determining how much money should be kept in the checking account

Question 3

Decisions made by financial managers should primarily focus on increasing which one of the following?

A.

size of the firm

B.

growth rate of the firm

C.

gross profit per unit produced

D.

market value per share of outstanding stock

E.

total sales

Question 4

The book value of a firm is:

A.

equivalent to the firm’s market value provided that the firm has some fixed assets.

B.

based on historical cost.

C.

generally greater than the market value when fixed assets are included.

D.

more of a financial than an accounting valuation.

E.

adjusted to the market value whenever the market value exceeds the stated book value.

Question 5

A firm has $520 in inventory, $1,860 in fixed assets, $190 in accounts receivables, $210 in accounts payable, and $70 in cash. What is the amount of the current assets?

A.

$710

B.

$780

C.

$990

D.

$2,430

E.

$2,640

Question 6