Pontificia Universidad Católica de Puerto Rico
Recinto de Mayagüez
Colegio de Administración de Empresas
Name:____________________________ Date:________________________
Student #: ________________________ Course: FINA 315 Sec.: _________
Partial Exam # 1(Chapter 1 & 2)
I. Select the correct answer:
1) The part of finance concerned with design and delivery of advice and financial products to individuals, business, and government is called
A) Managerial Finance.
B) Financial Manager.
C) Financial Services.
D) none of the above.
2) Managerial finance
A) involves tasks such as budgeting, financial forecasting, cash management, and funds procurement.
B) involves the design and delivery of advice and financial products.
C) recognizes
…show more content…
B) earnings per share.
C) cash flows available to stockholders.
D) risk.
22) The key variables in the owner wealth maximization process are
A) earnings per share and risk.
B) cash flows and risk.
C) earnings per share and share price.
D) profits and risk.
23) Cash flow and risk are the key determinants in share price. Increased cash flow results in ________, other things remaining the same.
A) a lower share price
B) a higher share price
C) an unchanged share price
D) an undetermined share price
24) Financial managers evaluating decision alternatives or potential actions must consider
A) only risk.
B) only return.
C) both risk and return.
D) risk, return, and the impact on share price.
25) An ethics program is expected to have a ________ impact on the firm's share price.
A) positive
B) negative
C) no impact
D) undetermined
26) Higher cash flow and greater risk
A) have no effect on share price.
B) have an inverse effect on share price.
C) adversely affect share price.
D) have the same effect on share price.
27) As the risk of a stock investment increases, investors'
A) return will increase.
B) return will decrease.
C) required rate of return will decrease.
D) required rate of return will increase.
28) All of the following as considered stakeholders EXCEPT
A) consumers.
B) suppliers.
C) employees.
D) competitors.
29) A financial manager must choose between four alternative Assets: 1, 2, 3, and 4. Each asset costs
Proficient-level: Define the terms finance and financial management, and identify the major sub-areas of finance.
Using at least two (2) of the foundational ethical theories studied in Module 2, you should answer the following questions. With each answer, you should discuss the issues and set forth and defend a clear position on whether or not any constraint ought to be placed on the freedom of a business to:
3. Which approach to managing a company's ethical conduct (see chap. 9, table 9.2) would you say Gallo seems to be applying? What are the challenges associated with this approach?
1. Most efficient use of resources to cover market needs. Management will look at more than
Financial services are the economic services provided by the finance industry, which encompasses a broad range of businesses that manage money.
The problem to be investigated is the application of business ethics. In the business world, ethics are extremely important. Ethics are prime elements that help a business to grow and to become more productive. It is by applying proper business ethics that a business can operate in a moral or ethical business environment and managed to conduct all activities in a manner that maximizes profits while not compromising all other non-economic concerns(Schwab, 1996). Businesses have over the years failed to nurture business ethics in order to fulfill shareholders' interests and to have a culture that is oriented towards profit maximization and high performance(Jennings, 2012; Sims & Felton, 2006). This has led business to have gray areas in their activities. Gray areas are those situations or problems that do not fit exactly into any ethical analysis. These are the activities which may be represented to be immoral as a result of lying and false representations on the part of the business.
1. Please comment on the areas of legal and ethical concerns for your organization as it markets its products/services. Be very specific in your comments. In the modern day business, many organizations have place emphasis on their financial outcome, however, this has been the main focus over values that are important to companies such as legal and ethical concerns as well as social responsibility that they have to the world.
6) The most powerful and persuasive response to the reasons and rationalizations that Larry can use to influence what he perceives to be ethical action is to be present at the conference call, present the market research data on
Analyze the manner in which Zappos’ leadership has fostered a culture of ethicalness in the company. Suggest two (2) actions that other companies can take in order to mimic this culture.
7. How might you use this three asset optimal-allocation model to construct and graph an
a. Identify the ethical dilemma faced by the CIO in this situation using the three normative theories of business ethics. Identify all stakeholders involved. How will each stakeholder group be affected by the decision taken by the management?
b. What are some of the reasons for the ARC's ethical dilemmas, and how can the organization guarantee that these problems will not recur in the future?
Jollibee built its core brand on a selection of key criteria (core competencies) to ensure that they would succeed in a highly competitive fast food environment. Jollibee Foods Corp (JFC) business operations catered to Filipinos eating habits such as satisfying their palettes with spicy hamburgers. JFC store fronts were also designed to be friendly and inviting; a comfort zone where families could gather to enjoy a selection of foods with a very local taste. JFC also made every effort in meeting all of their customer’s requirements. These aspects were essential to JFC’s overall success which also guided and aided their expansion through out the country. The preparation
4. The corporation gives funding to the university and other public institutions because they want to enhance reputation, but it will cause ethical concerns.
Financial services are provided by banks, insurance companies, credit card companies, stock brokerages, credit unions and finance companies that deal with the management of money. These services include savings, payment services, borrowing and other financial services such as insurance, investments, tax assistance and financial planning.