公司金融单选题库.doc

1、The more you have done, the more you would achieve. This is a golden rule. Dont believe? Try and see! 1 公司金融单选公司金融单选题库题库 CHAPTER 1 Introduction to Corporate Finance I.DEFINITIONS CHIEF FINANCIALOFFICER (CFO) a2.The top financial officer in a firm is commonly referred to as the: a.chief financial off

2、icer. b.president of finance. c.controller. d.treasurer. e.finance manager. CAPITALBUDGETING a4.The process of managing a firms long-term investments is called: a.capital budgeting. b.working capital management. c.credit management. d.cost accounting. e.capital structure management. CAPITALSTRUCTURE

3、 c5.The amount of debt and equity used by a firm to finance its operations is called the firms: a.debt ratio. b.working capital ratio. c.capital structure. d.financial position. e.cash position. WORKING CAPITAL d6.Short-term assets and short-term liabilities are referred to as the firms: a.cash flow

4、. b.capital budget. c.capital structure. d.working capital. e.financing mix. The more you have done, the more you would achieve. This is a golden rule. Dont believe? Try and see! 2 WORKING CAPITALMANAGEMENT e7.The management of a firms cash, inventory, and payables is referred to as: a.cash flow for

5、ecasting. b.asset management. c.capital management. d.cash budgeting. e.working capital management. SOLE PROPRIETORSHIP d8.Asole proprietorship is defined as a business: a.that is five or less years old. b.with two or less owners. c.that is created informally. d.that is owned by a single individual.

6、 e.that has a single general partner. PARTNERSHIP d9.A business organization that is similar to a sole proprietorship but has two or more owners is called a: a.limited liability company. b.corporation. c.dual company. d.partnership. e.joint stock company. PARTNERSHIPAGREEMENT a10.The document which

7、specifies how net profits and losses are to be divided among two or more individual owners, who are personally liable for the firms debts, is called: a.a partnership agreement. b.the corporate by-laws. c.the articles of incorporation. d.the partnership bill of rights. e.the limiting agreement. CORPO

8、RATION d11.Abusiness entity which is treated as a legal “person” is called a: a.limited partnership. b.sole proprietorship. c.general partnership. d.corporation. e.private venture. The more you have done, the more you would achieve. This is a golden rule. Dont believe? Try and see! 3 LIMITED LIABIIL

9、TY COMPANY (LLC) b14.Alimited liability company can be defined as a: a.business entity with both general and limited partners. b.cross between a partnership and a corporation. c.sole proprietorship which is taxed like a partnership. d.general partnership which is taxed like a corporation. e.limited

10、partnership which is taxed like a corporation. AGENCY PROBLEM c15.Any situation where a potential conflict can arise between the firms owners and its managers is referred to as a(n): a.organizational problem. b.personnel conflict. c.agency problem. d.control issue. pensation issue. STAKEHOLDER e16.A

11、nyone other than the firms stockholders or creditors that might have a claim on the cash flows of a firm is called a: a.residual owner. b.shareholder. c.liaison. d.provisional partner. e.stakeholder. PRIMARYMARKET a17.The primary market refers to: a.the original sale of securities by the issuer. b.t

12、ransactions between two institutional shareholders. c.the sale of securities by an individual shareholder. d.the first trade of a firms securities when the financial markets open in the morning. e.all transactions on the NYSE. SECONDARYMARKET c18.The market for trading securities after the original

13、sale is called the: a.primary market. b.private placement market. c.secondary market. d.listed market. e.corporate market. The more you have done, the more you would achieve. This is a golden rule. Dont believe? Try and see! 4 PUBLIC OFFERING b19.The sale of securities to the general public by the i

14、ssuer is known as a: a.secondary market offering. b.public offering. c.private placement. d.private offering. e.negotiated sale. PRIVATE PLACEMENT e20.Anegotiated sale of securities by an issuer to a specific buyer is called a(n): a.public offering. b.secondary placement. c.specialized sale. d.indep

15、endent placement. e.private placement. DEALER MARKET a21.Over-the-counter markets are _ markets. a.dealer b.franchise c.private d.auction e.physical AUCTION MARKET c22.A securities market with a physical location that is designed to match buyers with sellers is called a(n) _ market. a.dealer b.priva

16、te c.auction d.franchise e.block sale II.CONCEPTS INVESTMENTS c24.Which one of the following questions falls into the financial topic of investments? a.Which type of equipment should be purchased to produce a new product? b.How long should the firm wait before paying its suppliers? c.What are the ri

17、sks involved with owning a particular security? d.Should this customer be granted credit? e.How should the firm pay for its new building? The more you have done, the more you would achieve. This is a golden rule. Dont believe? Try and see! 5 BUSINESS FINANCE a27.Business finance addresses which one

18、of the following questions? a.Which long-term assets should a firm acquire? b.Which stocks should be purchased by a mutual fund? c.Which method of depreciation should be used by a firm for financial statement purposes? d.What is a particular stock worth in todays market? e.Should a company agree to

19、insure the property owned by a particular firm? CAPITALBUDGETING b30.The purpose of capital budgeting is to: a.avoid all projects that involve risk. b.identify assets that produce value in excess of their cost. c.determine the correct mix of debt and equity for a firm. d.appropriately control the le

20、vel of inventory on hand. e.control the short-term financing used by a firm. CAPITALBUDGETING c31.Which one of the following statements is related to capital budgeting? a.Afirm should monitor the ratio of debt to equity financing which it uses. b.Afirm should monitor the amount of its current assets

21、 as compared to its current liabilities. c.Afirm should consider the size, risk, and timing of an assets cash flows before deciding to purchase that asset. d.Afirm should consider various types of loans offered by various lenders before taking out a loan. e.Afirm should determine the ideal level of

22、inventory that should be kept on hand. CAPITALSTRUCTURE d33.The capital structure of a firm refers to the firms: a.buildings and equipment. b.organizational chart. c.available cash. d.long-term debt and equity. e.current assets and liabilities. WORKING CAPITALMANAGEMENT b35.The daily financial opera

23、tions of a firm are primarily controlled by managing the _ of the firm. a.total debt b.working capital c.capital structure d.capital budget The more you have done, the more you would achieve. This is a golden rule. Dont believe? Try and see! 6 e.long-term liabilities SOLE PROPRIETORSHIP c36.Asole pr

24、oprietor: a.earns income which is subject to double taxation. b.incurs significant legal costs to form his or her business entity. c.assumes personal liability for all of the debts of the business. d.creates a business entity with an unlimited life. e.can generally raise unlimited equity to finance

25、his or her business activities. GENERALPARTNERSHIP e38.Under a general partnership,: a.limited partners control the daily activities of the firm but face unlimited liability for all of the debts of the partnership. b.limited partners enjoy limited liability but lose the ability to be involved in the

26、 daily operations of the partnership. c.each partners potential loss is limited to his or her investment in the firm but he or she has unlimited say over the daily operations of the partnership. d.the general partner has unlimited liability and must consult with the limited partners on daily operati

27、onal issues. e.each partner receives only a proportionate share of the profits but is responsible for 100 percent of the partnership debts. LIMITED PARTNERSHIP e40.The advantage of being a limited partner in a limited partnership is the ability to: a.profit without risking your investment. b.activel

28、y manage the firm without losing more than you invested. c.raise capital while you still maintain total control over the daily operations. d.be taxed on any profits separately from your personal income. e.invest in a partnership while limiting your loses to the amount you invested. CORPORATION c42.A

29、corporation: a.can neither sue another party nor be sued. b.may own property but can not borrow funds to do so. c.may be considered a resident of an individual state. d.can issue its own stock but can not purchase stock in another entity. e.can be formed by an oral agreement amongst the shareholders

30、. The more you have done, the more you would achieve. This is a golden rule. Dont believe? Try and see! 7 CORPORATION c43.The bylaws of a corporation include information such as the: a.intended life of the corporation. pany name. c.method by which directors are elected. d.number of shares of stock t

31、hat can be issued. e.business purpose of the organization. LIMITED LIABILITY COMPANY a44.The primary advantages of a limited liability company are the: a.means of taxation and the limits on the liabilities assumed by the owners. b.avoidance of any financial loss and the corporate taxation. c.limited

32、 liabilities for the limited partners and the control of management by the general partners. d.ease of trading the shares of stock in the firm and the personal taxation of the net profits. e.limited liabilities and the double taxation. GOALOF FINANCIALMANAGMENT d46.The primary goal of financial mana

33、gement is to maximize the: a.current net income. working capital. c.the number of shares outstanding. d.market value of the existing stock. e.capital structure. GOALOF FINANCIALMANAGEMENT c47.Which one of the following actions best matches the primary goal of financial management? a.increasing the s

34、ize of the company by acquiring another firm in a different industry b.decreasing the variable costs while increasing the fixed costs per unit sold c.increasing the market value of the equity by improving the efficiency of operations d.decreasing the liquidity of the firm while increasing the long-t

35、erm debt e.increasing the net working capital while maintaining the same level of sales AGENCY PROBLEM d48.Which one of the following situations is most apt to create an agency problem? a.an employee receives a pay raise based on his or her extraordinary contributions to the firm b.an employee is pa

36、id twice the normal wage for working overtime to complete a special project on time for a customer c.a manager is rewarded because the employees in his or her department had no The more you have done, the more you would achieve. This is a golden rule. Dont believe? Try and see! 8 accidents for a yea

37、r d.a manager receives a bonus because he or she has hired the most new employees in the past year e.the company president receives a bonus based on the profits of the firm AGENCY PROBLEM c49.An agency problem frequently exists in situations where there is a separation of: a.treasury and controller

38、functions. b.working capital and capital structure management. pany ownership and company management. d.marketing and financial management. e.investment and working capital management. CONTROLOFTHE FIRM c50.The control of a corporation ultimately lies with the: a.chief financial officer. pany presid

39、ent. pany stockholders. d.chairman of the board. e.chief executive officer. PRIMARYMARKET d53.Which one of the following transactions occurs in the primary market? a.ABC Co. sells XYS stock on the NYSE. b.Jane sells shares of GHI to Robert. c.Martha sells shares of KLM to her son. d.POQ sells new sh

40、ares of POQ to Frederico. e.QRS buys back shares of QRS from Alicia. SECONDARYMARKET e55.Which one of the following statements is correct concerning the secondary markets? a.The secondary markets are limited to auction markets. b.The secondary markets are those which conduct business over-the-counte

41、r only. c.The term secondary markets refers to electronic exchanges that do not have a physical location. d.Secondary markets are all auction markets such as the NYSE and NASDAQ. e.Secondary markets can be either dealer or auction markets. FINANCIALMARKETS The more you have done, the more you would

42、achieve. This is a golden rule. Dont believe? Try and see! 9 d58.All large company stocks such as General Electric and Microsoft: a.trade on the NYSE. b.trade in auction markets. c.must trade in dealer markets. d.can trade on the exchange of their choosing as long as they qualify for listing. e.trad

43、e over-the-counter due to the large volume of trading that occurs daily. FINANCIALMARKETS a60.The financial markets in the U.S.: a.transact trades in both the primary and the secondary markets. b.are the only significant financial markets in the world. c.are all auction markets while the internation

44、al markets are primarily dealer markets. d.trade securities only after the securities have been registered with the National Association of Securities Dealers (NASD). e.trade equity securities only. CHAPTER 2 Financial Statements, Taxes, and Cash Flow I.DEFINITIONS BALANCE SHEET b1.Abalance sheet is

45、 a financial statement that: a.reports the cash flows of a firm as of a specified date. b.reflects a firms accounting value on a particular date. c.records the revenues and expenses for a firm over a period of time. d.reflects the market value of a firm as of the statement date. e.reports the net in

46、come for a designated period of time based on the Generally AcceptedAccounting Principles. CURRENTASSETS c2.Acurrent asset is defined as an asset that: a.was purchased after the last financial statement date. b.was purchased within the past twelve months. c.normally converts to cash within one year.

47、 d.was manufactured within the past year and has yet to be sold. e.is highly illiquid. FIXEDASSETS a3.Afixed asset by definition: a.has a relatively long life. The more you have done, the more you would achieve. This is a golden rule. Dont believe? Try and see! 10 b.has a life of one year or more an

48、d is a tangible asset. c.includes both highly liquid assets and intangible assets. d.is equal to total assets minus net working capital. e.converts to cash within one year. TANGIBLEASSETS e4.Atangible asset: a.is defined as any asset which adds value to a firm. b.by definition includes both equipmen

49、t and patents. c.is another term for a fixed asset. d.is defined as an asset with a market value that exceeds the book value. e.is a fixed asset with a physical existence. INTANGIBLEASSETS a5.An intangible asset is a: a.valuable fixed asset that has no physical existence. b.physical fixed asset that loses value over time, such as equipment. c.fully-depreciated fixed asset which has no remaining market value. d.current asset with a negligible book value but considerable market value. e.current asset with minimal market value and no physical existence. CURRENT LIABILITIES b25.Which one of the f