12. A firm's investment decision is also called its A. liquidity decision. B. financing decision. C. leasing decision. D. capital budgeting decision. 13. A corporation, potentially, has infinite life because it A. has the same ownership and management. B. is a legal entity. C. is closely regulated. D. has limited liability. 15. Which of the following assets is tangible? A. ExxonMobil's corporate headquarters building B. Apple Inc.'s trademark C. Microsoft's technical expertise D. Hewlett-Packard's most recent printer patent

12. A firm's investment decision is also called its A. liquidity decision. B. financing decision. C. leasing decision. D. capital budgeting decision. 13. A corporation, potentially, has infinite life because it A. has the same ownership and management. B. is a legal entity. C. is closely regulated. D. has limited liability. 15. Which of the following assets is tangible? A. ExxonMobil's corporate headquarters building B. Apple Inc.'s trademark C. Microsoft's technical expertise D. Hewlett-Packard's most recent printer patent

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter12: Balanced Scorecard And Other Performance Measures

Section: Chapter Questions

Problem 12MC: The cost of equity is _______. A. the interest associated with debt B. the rate of return required...

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4.What decisions do managers take that is focused on the financial wellbeing of the company and sometimes includes acquisition of assets, financing and raising funds and capital? A. Financial Decision B. Investment Decision C. Capital Budget Decision 5. What are decisions that mangers usually make? A. Investment, Financial, Dividend Decisions B. Investment, Capital, Dividend Decisions C. Investment, Financial, Capital Decisions 6.Which of the following cannot be considered as an example of Investment Decision? A. Investment in Plant and Machinery B. The decision to enter a new market C. Giving dividends
11. A corporation may incur agency costs because: A. Managers may not attempt to maximize the value of the firm to shareholders.B. Shareholders incur monitoring costs.C. All of the responses are correct.D. Of the separation of ownership and management. 12. A firm's investment decision is also called its A. liquidity decision.B. financing decision.C. leasing decision.D. capital budgeting decision. 13. A corporation, potentially, has infinite life because it A. has the same ownership and management.B. is a legal entity.C. is closely regulated.D. has limited liability.
which one is correct answer please confirm? QUESTION 28 The business risk of a firm refers to the ____. a. influence of government regulations on business earnings b. results from using fixed-cost sources of funds c. variability in the firm's operating earnings over time d. variability in the price of a firm's securities
9.-Which of the following is not a function of financial management? Options:A) Handling decisions about personnel policies that will be involved in financial activities. B) Determining the asset structure of a company. C) The development of a planning and analysis of the activities that have to do with the company's resource flows. D) Determination of the company's financing mix. (class exercise)
Which of the statement is FALSEYang mana satu penyataan adalah SALAH? Select one:A.Capital is to be used to further increase the value of the company/ Modal akan digunakan untuk meningkatkan lagi nilai syarikat B.Capital is the net value of a company that exists in the form of cash, inventories & facilities (machines/equipments/vehicles) / Modal adalah nilai bersih syarikat yang wujud dalam bentuk wang tunai, inventori & kemudahan (mesin/peralatan/kenderaan) C.Capital is cash/facilities that are used to generate income/profit of a biz by way of investment Modal adalah tunai / kemudahan yang digunakan untuk menjana pendapatan / keuntungan biz dengan cara pelaburan D.Capital is only in the form of money/ Modal hanya dalam bentuk wang
Which of the following statement is INCORRECT? Question 20 options: 1) The finance manager manages the short-term balance sheet items of the company, such as current assets and current liabilities. 2) The finance manager uses investment evaluation techniques to decide whether to purchase fixed assets. 3) The finance manager seeks to maximise the firm’s wealth when deciding on the choice of capital sources such as debts and equity. 4) The right-hand side of the balance sheet refers to the company’s investment decisions to buy fixed assets to generate returns.
explain these two briefly 1. MANAGEMENT RISK - Decisions made by a firm's management and board of directors materially affect the risk faced by investors. Areas affected by these decisions range from product innovation and production methods (business risk) and financing (financial risk) to acquisitions. 2. FINANCIAL RISK - The firm's capital structure or sources of financing determine financial risk. If the firm is all-equity financed, any variability in operating income is passed directly to net income on an equal percentage basis.
a. Discuss the factors that are likely to influence the desired level of cash of a company b. Outline the advantages and disadvantages of using short term debt, as opposed to longterm debt, in the financing of working capitalc. Why cash flows rather than profits are most desirable in financial management? d. Explain the term “agency relationships” and discuss the conflicts that might exist in therelationship between’i) Shareholder and managersii) Shareholders and creditorsWhat steps may be taken to overcome these conflicts?
The primary goal of financial managers include all of the following EXCEPT : A. Maximize stockholder wealth. B. Maximizing firm value C. Challenge legislation in states where the company operates D. Minimizing WACC
9. The choice of the proper mixture of debt and equity, used to finance a corporation, is also referred to as the A. capital budgeting decision.B. capital structure decision.C. investment decision.D. liquidity decision. 10. As a legal entity, a corporation can perform the following functions EXCEPT: A. voteB. borrow money, lend money, sue and be sued, and vote.C. borrow money and lend money.D. borrow money, lend money, and sue and be sued. 12. A firm's investment decision is also called its A. liquidity decision.B. financing decision.C. leasing decision.D. capital budgeting decision. 13. A corporation, potentially, has infinite life because it A. has the same ownership and management.B. is a legal entity.C. is closely regulated.D. has limited liability.
The business risk of a firm refers to the ____. a. results from using fixed-cost sources of funds b. influence of government regulations on business earnings c. variability in the firm's operating earnings over time d. variability in the price of a firm's securities
8. Which of the following types of assets are intangible? A. production machineryB. office equipmentC. factoriesD. trademarks 9. The choice of the proper mixture of debt and equity, used to finance a corporation, is also referred to as the A. capital budgeting decision.B. capital structure decision.C. investment decision.D. liquidity decision. 10. As a legal entity, a corporation can perform the following functions EXCEPT: A. vote.B. borrow money, lend money, sue and be sued, and vote.C. borrow money and lend money.D. borrow money, lend money, and sue and be sued.