Question
I need help with my finance study guide. These are the questions listed below: (I do not own any of this material and I am
I need help with my finance study guide. These are the questions listed below: (I do not own any of this material and I am not using a tutors work and claiming it as my own. I just need help with the correct answers)
A business organization that is owned by two or more people who operate it for profit is a
1.proprietorship.
2.corporation
3.partnership
4.limited liability company
The shares of a public corporation are traded on an exchange while the shares of a private corporation ________ traded on a public exchange.
Group of answer choices
1.are
2.are not
3.must be
4.None of the above
What should be the financial goal of any firm?
1.attracting and acquiring capital and investing it
2.maximization of the owners' wealth
3.offering quality products at fair prices
4.quality customer service
What is a way to operationalize shareholder wealth maximization?
1.Identify and select projects that are expected to have negative net future values.
2.Identify and select projects that are expected to have positive net future values.
3.Identify and select projects that are expected to have positive net present values.
4.Identify and select projects that are not expected to have positive net present values.
Financial institutions are intermediaries that aid in the flow of funds between borrowers and investors.Which of the following is not a financial institution?
1.banks
2.real estate developers
3.insurance companies
4.investment companies
For risk averse investors, how much return is expected for taking on more risk?
1.lower
2.equal
3.zero
4.higher
______________ refers to credit claims on a firm.
1.Equity
2.Liabilities
3.Assets
4.Balance sheet
Which of the following are reasons to do financial statement analysis:
1.It reflects the effect of the economic and competitive environment
2.It has many internal uses by management
3.It has many external uses for investors, suppliers, lenders
4.All of the above
_________________ are used to present additional information about items included in the financial statements and to present additional financial information.
1.stock certificates
2.Notes to financial statements
3.Preferred stocks
4.Convertible securities
The __________ links the income statement and the balance sheet
1.statement of cash flows
2.auditors report
3.stockholders
4.Statement of stockholder equity
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