Chapter 1, Problem 1Q

which one is correct answer? Q30: ____ determines the ultimate distribution of the firm’s earnings between reinvestment and cash dividend payment to shareholders.   a. Financial expertise   b. Board of Directors’ agreements   c. Dividend policy   d. Management efficiency

Q: Compare the characteristics of organizational and legal forms of enterprises: Criteria The organizational and legal form Individual entrepreneur Economic partnership (LLC) Economic society (JSC) Simplicity of the creation       Control over the activities                   Liability of the owners           Investment Liquidity*       Period of existence

Which of the following may provide evidence of significant influence even if the percentage of ownership interest is less than 20\% ? Representation on the board of directors or equivalent governing body of the investee Participation in policy-making processesincluding participation in decisions about dividends or other distributions transactions between the investor and the investee IV Interchange of managenal personnel V. Provision of essential technical information.

Classify the following users of information as either: I—internal user T—external user: trading partner S—external user: stakeholder a. Internal Revenue Service b. Inventory control manager c. Board of directors d. Customers e. Lending institutions f. Securities and Exchange Commission g. Stockholders h. Chief executive officer i. Suppliers j. Bondholders

As the financial manager of a state-own enterprise that is about to have its majority ownership transferred from government to the private sector and to become a listed company on the Stock Exchange discuss the differences in the financial objectives that you are likely to face and the changes that are likely to occur in your strategic and operational decisions as a finance manager.

Question A _______________is a separate entity and in that capacity can borrow from banks, bondholders, preferred stockholders, and common shareholders. A.        limited partnership B.         sole proprietorship C.         government organization D.         public company

Question 1:  Define and discuss each of the following by providing at least 2 practical examples: a) Limited Partnership; Limited Liability partnership; Professional corporation?  b) A friend asked you to reveal important financial information of the company,being a finance manager of the company what would you do? Justify by considering ethics in finance. c) Describemechanisms that motivate managers to act in stockholders’ best interests, and to overcome agency problem?

________ is a separate entity and in that capacity can borrow from banks, bondholders, preferred stockholders, and common shareholders. A.        limited partnership B.         sole proprietorship C.         government organization D. public company

IFRS are relevant to various stakeholders. State the relevance of IFRSs to each of thefollowing stakeholders:i. Investorsii. Multinational companiesiii. Governments