Ch $01$: Assignment $-$ An Overview of Financial Management

Attempts $$ Keep the Highest $\frac{?}{2}$

Basic Concepts

Match the terms relating to the basic terminology and concepts of corporate finance on the left with the descriptions of the terms on the right. Read each description carefully and type the letter of the description in the Answer column next to the correct term. These are not necessarily complete definitions, but there is only one possible answer for each term.

Term

Finance

Corporation

Treasurer

Limited liability

Limited liability

Business ethics

Ansiver

Description

A$.$ The U$.$S$.$ Internal Revenue Service taxes the taxable income of corporations as well as the taxable investment income of the firms' shareholders.

B$.$ An investor's personal responsibility for the business's liabilities can never be less than zero or more than the amount invested in the firm's common shares.

C$.$ This is a participant in a partnership, whose personal assets may not be seized to satisfy the debts of the partnership.

D$.$ This is the worth of a good or service as established by the discounted and currYa

Ch $01$: Assignment $-$ An Overview of Financial Management

Attempts $$ Keep the Highest $\frac{?}{2}$

Basic Concepts

Match the terms relating to the basic terminology and concepts of corporate finance on the left with the descriptions of the terms on the right. Read each description carefully and type the letter of the description in the Answer column next to the correct term. These are not necessarily complete definitions, but there is only one possible answer for each term.

$\backslash$table$[[$Term$,$Answer,Description$],[$Finance$,$grad,$\backslash$table$[[$A$.$ The U$.$S$.$ Internal Revenue Service taxes the taxable income of corporations as well as$],[$the taxable investment income of the firms' shareholders.$]]],[$Corporation$,$grad,$\backslash$table$[[$B$.$ An investor's personal responsibility for the business's liabilities can never be less than$],[$zero or more than the amount invested in the firm's common shares.$]]],[$Treasurer$,$grad,$\backslash$table$[[$C$.$ This is a participant in a partnership, whose personal assets may not be seized to$],[$satisfy the debts of the partnership.$]]],[$Limited liability,grad,$\backslash$table$[[$D$.$ This is the worth of a good or service as established by the discounted and current$],[$value of the item's cash flows.$]]]]$

Business ethics

E$.$ This general term is given to an individual or a group that has an interest in$,$ or isent value of the item's cash flows.

E$.$ This general term is given to an individual or a group that has an interest in$,$ or is

Free cash flow

Accounting statements represent a company's earnings, but this is not the real cash that a company generates. Earnings data can be manipulated and can be deceiving. Thus, corporate decision makers and security analysts focus on the free cash flow that a firm generates to analyze the company's real cash position.

Which of the following statements best describes free cash flow?

The excess cash generated by revenues less all operating expenses

The cash flow available for distribution to all investors after the company has made all investments in fixed assets and working capital necessary to sustain a firm's ongoing operations