1. A business owned by a single individual is called a:
a) corporation.
b) sole proprietorship.
c) general partnership.
d) limited partnership.
e) limited liability company.
2. The decisions made by financial managers should all be ones which increase the:
a) size of the firm.
b) growth rate of the firm.
c) marketability of the managers.
d) market value of the existing owners' equity.
e) firm’s current sales.
3. 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.
4. Accounting concepts for a firm to create value it must:
a) have a greater cash inflow from its stockholders than its outflow to them.
b) create more cash flow than it uses.
c) reduce its investment in fixed assets since fixed assets require the use of cash.
d) avoid payments to the government so dividends can be increased.
e) avoid the issuance of debt securities
Find the week 1 connect problems answers here FIN 571 Week 1 Connect Problems
5. 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.
6. Which one of the following business types is best suited to raising large amounts of capital?
a) sole proprietorship
b) limited liability company
c) corporation
d) general partnership
e) limited partnership
7. Accounting profits and cash flows are generally:
a) the same since they reflect current laws and accounting standards.
b) the same since accounting profits reflect when cash flows occur.
c) different because of GAAP rules regarding the recognition of...