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Chapter 1 Question e

This document contains 9 multiple choice questions about corporate finance concepts. The questions cover topics such as capital budgeting, working capital, capital structure, forms of business organization, primary vs secondary markets, and calculating net income vs cash flow.

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62 views

Chapter 1 Question e

This document contains 9 multiple choice questions about corporate finance concepts. The questions cover topics such as capital budgeting, working capital, capital structure, forms of business organization, primary vs secondary markets, and calculating net income vs cash flow.

Uploaded by

Đỗ Thị Huyền
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Chapter 1: Introduction to Corporate Finance

 
Multiple Choice Questions
- Vốn chủ: NST, DIR, RE

1. Which one of the following terms is defined as the management of a firm's long-term
investments? 
A. working capital management
B. financial allocation
C. agency cost analysis
D. capital budgeting
E. capital structure

2. Which one of the following is defined as a firm's short-term assets and its short-term
liabilities? 
A. working capital
B. debt
C. investment capital
D. net capital
E. capital structure

3. A business created as a distinct legal entity and treated as a legal "person" is called a: 

(Một doanh nghiệp được thành lập với tư cách là một thực thể pháp lý riêng biệt và được đối
xử như một "người" hợp pháp được gọi là )
A. corporation/corperate/company (join Stock company)
B. sole proprietorship. => là một
C. general partnership. => là một
D. limited partnership.
E. unlimited liability company.

4.  Which one of the following is a capital budgeting decision? 


A. determining how many shares of stock to issue (bên dưới bảng cân đối kế toán)
B. deciding whether or not to purchase a new machine for the production line
C. deciding how to refinance a debt issue that is maturing
D. determining how much inventory to keep on hand
E. determining how much money should be kept in the checking account.

5.  The decision to issue additional shares of stock is an example of which one of the
following?.
A. working capital management
B. net working capital decision
C. capital budgeting
D. controller's duties
E. capital structure decision (có thêm tiền)
6.  Which form of business structure is most associated with agency problems? 
A. sole proprietorship
B. general partnership
C. limited partnership
D. corporation (
E. limited liability company
7.  Which of the following are cash flows from a corporation into the financial markets?
I. repayment of long-term debt
II. payment of government taxes
III. payment of loan interest
IV. payment of quarterly dividend 
A. I and II only
B. I and III only
C. II and IV only
D. I, III, and IV only
E. I, II, and III only

8. Which one of the following is a primary market transaction? 


A. sale of currently outstanding stock by a dealer to an individual investor
B. sale of a new share of stock to an individual investor
C. stock ownership transfer from one shareholder to another shareholder
D. gift of stock from one shareholder to another shareholder
E. gift of stock by a shareholder to a family member

9. X company has just ended the calendar year making a sale of $10 000 of merchandise
purchased during the year at a total cost of $6000. Although the firm paid in full for the
merchandise during the year, it has yet to collect at year end from the customer. The net
profit/net income and cash flow from this sale for the year are:
A. $4000 and $10 000 respectively
B. $4000 and $6000 respectively
C. $6000 and –$4000 respectively
D. $4000 and –$6000 respectively (vì customer chưa trả tiền)

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