Question 1

Which of the following personal decisions is NOT impacted by finance?

Accepted Answer

A)  Borrowing money to purchase cars or homes
B)  Making credit card payments
C)  Making retirement decisions
D)  All of these are impacted by finance.E) A) and C)
F) All of the above

Question 2

An employee stock option plan is:

Accepted Answer

A)  a perk usually only given to the board of directors as compensation.
B)  a plan that only partnerships can use to defer compensation to partners.
C)  a way to align the interests of employees with those of the owners.
D)  None of these answers is correct.E) B) and C)
F) C) and D)

Question 3

These individuals examine a firm's financial strength for its debt holders.

Accepted Answer

A)  Auditors
B)  Investment analysts
C)  Investment bankers
D)  Credit analystsE) B) and D)
F) None of the above

Question 4

Which of the following managers would NOT use finance?

Accepted Answer

A)  Operational managers
B)  Marketing managers
C)  Human resource managers
D)  All of these would use finance.E) A) and C)
F) A) and B)

Question 5

Which of the following is NOT considered a hybrid organization?

Accepted Answer

A)  S corporation
B)  Limited liability partnership
C)  Limited liability company
D)  Limited partnership
E)  All of these are considered hybrid organizations.F) A) and E)
G) A) and B)

Question 6

Which of these are NOT basic approaches to minimizing the agency problem?

Accepted Answer

A)  Ignore the conflict of interest
B)  Monitor managers' actions
C)  Align managers' personal interest with those of the owners by making the managers owners
D)  All of these are basic approaches to minimizing the agency problem.E) A) and B)
F) B) and D)

Question 7

Which of these does NOT act as a monitor of how the firm is being run outside the firm?

Accepted Answer

A)  Auditors
B)  Analysts
C)  Credit rating agencies
D)  Members of the board of directorsE) B) and D)
F) All of the above

Question 8

A potential future negative impact to value and/or cash flows is often discussed in terms of probability of loss and the expected magnitude of the loss.This is called:

Accepted Answer

A)  options.
B)  standard deviation.
C)  coefficient of variation.
D)  risk.E) All of the above
F) C) and D)

Question 9

This type of business organization is entirely legally independent from its owners.

Accepted Answer

A)  Sole proprietorship
B)  Partnership
C)  Public corporations
D)  Hybrid organizationsE) B) and D)
F) A) and D)

Question 10

Which of the following is the firm's highest-level financial manager?

Accepted Answer

A)  Chief executive officer
B)  Chief financial officer
C)  Board of directors
D)  Corporate governanceE) A) and B)
F) A) and C)

Question 11

Which of the following is defined as a group of securities that exhibit similar characteristics,behave similarly in the marketplace,and are subject to the same laws and regulations?

Accepted Answer

A)  Investments
B)  Asset classes
C)  Market instruments
D)  Financial marketsE) A) and B)
F) None of the above

Exam 1: Introduction to Financial Management

Which of the following managers would NOT use finance?

Correct Answer
verified

Which of the following personal decisions is NOT impacted by finance?

Correct Answer
verified

Which of these does NOT act as a monitor of how the firm is being run outside the firm?

Correct Answer
verified

An employee stock option plan is:

Correct Answer
verified

A potential future negative impact to value and/or cash flows is often discussed in terms of probability of loss and the expected magnitude of the loss.This is called:

Correct Answer
verified

Which of the following is defined as a group of securities that exhibit similar characteristics,behave similarly in the marketplace,and are subject to the same laws and regulations?

Correct Answer
verified

Which of the following is the firm's highest-level financial manager?

Correct Answer
verified

Which of the following is NOT considered a hybrid organization?

Correct Answer
verified

Which of these are NOT basic approaches to minimizing the agency problem?

Correct Answer
verified

This type of business organization is entirely legally independent from its owners.

Correct Answer
verified

These individuals examine a firm's financial strength for its debt holders.

Correct Answer
verified

Exam 1: Introduction to Financial Management

Which of the following managers would NOT use finance?

Correct AnswerverifiedShow Answer

Which of the following personal decisions is NOT impacted by finance?

Correct AnswerverifiedShow Answer

Which of these does NOT act as a monitor of how the firm is being run outside the firm?

Correct AnswerverifiedShow Answer

An employee stock option plan is:

Correct AnswerverifiedShow Answer

A potential future negative impact to value and/or cash flows is often discussed in terms of probability of loss and the expected magnitude of the loss.This is called:

Correct AnswerverifiedShow Answer

Which of the following is defined as a group of securities that exhibit similar characteristics,behave similarly in the marketplace,and are subject to the same laws and regulations?

Correct AnswerverifiedShow Answer

Which of the following is the firm's highest-level financial manager?

Correct AnswerverifiedShow Answer

Which of the following is NOT considered a hybrid organization?

Correct AnswerverifiedShow Answer

Which of these are NOT basic approaches to minimizing the agency problem?

Correct AnswerverifiedShow Answer

This type of business organization is entirely legally independent from its owners.

Correct AnswerverifiedShow Answer

These individuals examine a firm's financial strength for its debt holders.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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