You are watching: Which one of the following best states the primary goal of financial management
Which one of the complying with properly defines the upward chain of command in a typical corpoprice business structure?A. The chief executive officer reports to the president.B. The vice president of finance reports to the chairguy of the board.C. The controller reports to the president.D. The treasurer reports to the vice president of finance.E. The chief operations officer reports to the vice president of production.
Which of the adhering to inquiries are addressed by financial managers?I. How have to a product be marketed?II. Should customers be offered 30 or 45 days to pay for their crmodify purchases?III. Should the firm borrow even more money?IV. Should the firm acquire new equipment?A. II, III, and also IV just.B. II and III just.C. I, II, III, and also IV.D. I and IV only.E. I, II, and III just.
Which one of the following terms is identified as the mixture of a firm"s debt and equity financing?A. Cash administration.B. Capital budgeting.C. Capital structure.D. Working resources management.E. Cost analysis.
Which among the complying with is a funding structure decision?A. Determining exactly how a lot inventory will be essential to support a project.B. Determining exactly how to allocate investment funds to multiple projects.C. Determining how a lot debt should be assumed to money a job.D. Determining the amount of funds necessary to finance customer purchases of a new product.E. Determining which one of 2 jobs to accept.
Which among the adhering to finest states the major goal of financial management?A. Minimize operational costs while maximizing firm efficiency.B. Increase cash flow and also protect against financial distress.C. Maintain secure development while enhancing existing profits.D. Maximize existing dividends per share.E. Maximize the current value per share.
Which among the adhering to ideal illustprices that the administration of a firm is adhering to the goal of financial management? A. Increase in the market value per share.B. Increase in the amount of the quarterly dividfinish. C. Increase in the variety of shares exceptional.D. Decrease in the net functioning capital.E. Decrease in the per unit production prices.
Financial managers should primarily focus on the interests of:A. The vice president of finance.B. The board of directors.C. Shareholders.D. Their immediate supervisor.E. Stakeholders.
Decisions made by financial supervisors must mainly focus on raising which among the following?A. Market worth per share of exceptional stock.B. Gross profit per unit developed.C. Growth rate of the firm.D. Total sales.E. Size of the firm.
Why need to financial supervisors strive to maximize the present worth per share of the existing stock?A. Due to the fact that this will certainly boost the current dividends per share.B. Doing so boosts employee salaries.C. Because they have actually been hired to represent the interests of the existing shareholders.D. Doing so promises the company will certainly thrive in size at the maximum possible rate.E. Because managers frequently receive shares of stock as component of their compensation.
A company formed by two or even more individuals who each have actually boundless licapability for every one of the firm"s business debts is dubbed a: A. Corporation.B. Limited partnership.C. Sole proprietorship.D. General partnership.E. Limited licapability agency.
Corpoprice bylaws: A. Determine just how a corporation regulates itself.B. Cannot be amended when embraced.C. Must be amfinished should a firm decide to increase the number of shares authorized.D. Describe the intfinished life and also purpose of the organization.E. Define the name through which the firm will run.
A limited partnership: A. Consists solely of limited partners.B. Has an infinite life.C. Has a greater capability to raise resources than a single proprietorship.D. Terminates at the death of any restricted companion.E. Can opt to be taxed as a corporation.
Which one of the complying with statements is correct? A. Corpoprice shareholders elect the corporate president.B. The majority of firms in the UNITED STATE are structured as corporations.C. Corporations deserve to raise large amounts of funding mostly easier than partnerships deserve to.D. Corporate profits are taxable ininvolved the shareholders once earned.E. Stockholders challenge no potential losses regarded their corpoprice investment.
Sally and also Alicia presently are basic partners in a company situated in Atlanta, Georgia. They are content through their existing taxes instance however are both very uncomfortable through the boundless licapability to which they are each subjected. Which create of service entity need to they think about to rearea their general partnership assuming they wish to reprimary the just 2 owners of their business? Whichever before organization they pick, they wish to be treated equally. A. Limited licapacity company.B. Joint stock agency.C. Sole proprietorship.D. Corporation.E. Limited partnership.
Which one of the complying with terms is defined as a dispute of interest between the corpoprice shareholders and the corpoprice managers? A. Legal liability.B. Articles of incorporation.C. Corporate breakdown.D. Agency difficulty.E. Bylegislations.
Which one of the following is an company cost? A. Cshedding a department of the firm that is operating at a loss.B. Hiring outside accountants to audit the company"s financial statements.C. Investing in a brand-new task that creates firm worth.D. Increasing the quarterly dividend.E. Accepting an investment chance that will certainly add value to the firm.
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Which one of the complying with actions by a financial manager is the majority of apt to create an company problem? A. Increasing existing profits as soon as doing so lowers the value of the firm"s equity.B. Refutilizing to borrow money as soon as doing so will create losses for the firm.C. Refmaking use of to expand the firm if doing so will certainly lower the value of the equity.D. Refusing to reduced selling prices if doing so will certainly reduce the net revenues.E. Agreein
Which one of the complying with is an unintfinished result of the Sarbanes-Oxley Act? A. Increased duty for corporate policemans. WRONGB. More thorough and accurate financial reporting.C. Corporations delisting from significant exchanges.D. Identification of internal regulate weaknesses.E. Increased administration awareness of internal controls.