6. Offering discounts to accelerate the collection of accounts receivables in an example of which cash-related activity in the cash flow cycle? a. operating activity b. profitability activity c. investing activity d. financing activity

7. In general, financial managers are concerned with which of the following? a. creating economic wealth b. making investment decisions that optimize economic value c. making business decisions that optimize economic wealth d. all of the above

8. A corporate financial manager who is trying to create value for its shareholders ______. a. is not concerned with ethics but rather with writing iron-clad contracts b. can safely ignore ethics as long as no laws are broken c. must behave ethically to stay out of jail d. is concerned with ethics because unethical behavior destroys trust, and businesses cannot function without a certain degree of trust

10. Although the firm has many important stakeholders, the ________ are most important because they are essentially the owners of the firm. a. shareholders b. investment bankers c. lenders d. managers

11. Which of the following statements is/are advantages of incorporation? a. access to capital markets b. limited liability c. unlimited life d. all of the above

15. When a country imports more than it exports, it will ______. a. be known as a net importing country and this portion of the GDP will have positive value b. be known as a net importing country and this portion of its GDP will have a negative value c. be known as a net exporting country and this portion of its GDP will have a positive value d. be known as a net exporting country and this portion of its GDP will have a negative value

16. Capital market conditions can affect the timing of a new equity issue because ______. a. issuing new equity may be harder when stock prices are rising b. issuing new equity may be easier when stock prices are rising c. issuing new equity may be harder when stock prices are falling d. b and c

20. A firm is considering whether to outsource some aspects of the manufacturing of its products. Which one of the Six P's of Operations is the firm addressing? a. product quality b. process c. plant d. people

21. Sizing-up marketing management involves ______. a. identifying the firm's strengths and weaknesses related to marketing b. identifying the target market c. identifying the appropriate marketing mix d. all of the above