1. The major goal of a publicly owned corporation is to ________. a. maximize dividends per share b. maximize shareholder riches c. maximize income per share after taxes d. minimize shareholder risk

2. Market worth included is the difference in between the market value of the firm and _________. a. the amount of money invested in the firm b. the liabilities of the firm c. the kept revenue of the firm d. the dividends passist by the firm

3. A financial manager is considering 2 tasks, A and B. A is supposed to add $2 million to revenues this year while B is intended to add $1 million to profits this year. Which of the following statements is a lot of correct? a. The manager should choose project A bereason it maximizes revenues. b. The manager have to select the task that maximizes permanent profits, not just one year of profits. c. The manager should select task A or he is irrational. d. The manager need to select the project that causes the stock price to boost the many, which might be A or B.

4. Shareholder riches maximization means ________. a. maximizing earnings per share b. maximizing dividends per share c. maximizing the price of existing widespread stock d. maximizing stockholders equity

5. A restricted partnership gives restricted licapability to ________. a. all general partners b. just restricted partners responsible for day to day monitoring of the firm c. only to restricted partners who carry out not take part in the administration of the organization d. all partners

6. Joe is deciding whether or not to invest $10,000 in a company that has actually pfinishing lawsuits versus it. If Joe invests and the business loses the lawsuits, the many Joe can shed is __________. a. $10,000 if Joe is a general companion b. $10,000 is Joe is a single proprietor c. $10,000 if Joe is a limited companion d. $10,000 plus his share of the lawsuits if Joe is a limited partner




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7. S-kind corporations have all of the complying with benefits except: a. they are taxed as partnerships b. the owners have actually restricted liability c. distributions are taxed twice, equivalent to corpoprice dividfinish payments d. all owners need to be civilization, no corporations

8. All of the following company establishments carry out limited liability to their owners except:

a. general partnership b. S-type corporation c. corporation d. restricted licapability company

9. Bill, a regional inventor, emerged a diet pill that he believes will fix the weight problems trouble in the USA. Bill wants to develop a brand-new agency, 50% owned by Bill and also 50% owned by a significant drug firm. Although he believes the pills are safe, Bill is concerned around licapability if someone becomes sick or dies. The finest develop of company company for the brand-new agency is ________. a. single proprietorship with Bill as owner and the drug company as creditor b. general partnership through Bill and also the drug company as equal partners c. S-form corporation via Bill and also the drug agency owning equal shares d. restricted licapacity agency with Bill and also the drug agency owning equal shares

58. The financial manager the majority of directly responsible for producing the company’s financial statements and directing its cost accounting functions is the _________. a. chief financial officer b. controller c. treasurer d.

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