Please Answer ASAP

1. The decision to issue additional shares of stock is an example of __________.

   	A.	Controllers duties
   	B.	Capital budgeting decision
   	C.	Capital structure decision
   	D.	Net working capital decision
   	E.	Working capital management

1 points

QUESTION 3

1. A business partner whose potential financial loss in the partnership will not exceed his or her investment is called a __________.

   	A.	Zero partner
   	B.	Sole proprietor
   	C.	General partner
   	D.	Corporate shareholder
   	E.	Limited partner

1 points

QUESTION 4

1. Which one of the following should a financial manager consider when analysing a capital budgeting project?

   1. Project start-up costs.
   2. Timing of all projected cash flows.
   3. Dependability of future cash flows.
   4. Dollar amount of each projected cash flow.

   	A.	I and IV only.
   	B.	I, II and IV only.
   	C.	I, II and III only.
   	D.	II, III and IV only.
   	E.	All of the above.

1 points

QUESTION 5

1. Which of the following individuals have unlimited liability based on their ownership interest?

   1. General partner
   2. Sole proprietor
   3. Stockholder
   4. Limited partner

   	A.	II only.
   	B.	I and II only.
   	C.	II and IV only.
   	D.	I, II and III only.
   	E.	I, II and IV only.

1 points

QUESTION 6

1. Which one of the following are advantages of the corporate form of business ownership?

   1. Limited liability for firm debt
   2. Double taxation
   3. Ability to raise capital
   4. Unlimited firm life

   	A.	I and II only.
   	B.	III and IV only.
   	C.	I, III and IV only.
   	D.	II, III and IV only.
   	E.	All of the above.

1 points

QUESTION 7

1. Which one of the following statements concerning a sole proprietor is correct?

   	A.	A sole proprietorship is structured the same as a limited liability company.
   	B.	A sole proprietorship is designed to protect the personal assets of the owner.
   	C.	The sole proprietorship can continue even after the death of the sole proprietor.
   	D.	The profits of a sole proprietorship are subject to double taxation.
   	E.	The owner of a sole proprietorship is personally responsible for all the companys debts.

1 points

QUESTION 8

1. Lily and Lina currently are general partners in a business located in Malaysia. They are content with their current tax situation but are both very uncomfortable with the unlimited liability to which they are both subjected. Which form of business entity should they consider replacing their general partnership assuming they wish to remain as the only two owners of their business?

   	A.	Corporation
   	B.	Joint stock company
   	C.	Limited partnership
   	D.	Limited liability company
   	E.	Sole proprietorship

1 points

QUESTION 9

1. Why should financial managers strive to maximise the current value per share of the existing stock?

   	A.	To guarantee the company will grow in size at the maximum possible rate.
   	B.	To increase employee salaries.
   	C.	To increase the current dividends per share.
   	D.	They have been hired to represent the interests of the current shareholders.
   	E.	They often receive shares of stock as part of their compensation.

1 points

QUESTION 10

1. Which one of the following is least likely to be an agency problem?

   	A.	To obtain a patent for a new product.
   	B.	To maximise the current profits.
   	C.	To close a division with net losses.
   	D.	To increase the market value of the firms shares.
   	E.	To increase the size of a firm.

1 points

QUESTION 11

1. Which of the following are the cash flows from a corporation into the financial markets?

   1. Repayment of long-term debt.
   2. Payment of government taxes.
   3. Payment of loan interest.
   4. Payment of quarterly dividend.

   	A.	I and II only.
   	B.	I and III only.
   	C.	II and IV only.
   	D.	I, III and IV only.
   	E.	I, II and III only.

1 points

QUESTION 12

1. The percentage of the next dollar you earn that must be paid in taxes is referred to as the __________ tax rate.

   	A.	Average
   	B.	Residual
   	C.	Total
   	D.	Marginal
   	E.	Mean

1 points

QUESTION 13

1. Mr. Albert Ho has sold 1000 shares of GENM on Bursa Malaysia (KLSE). This transaction __________.

   	A.	Was a private placement
   	B.	Involved a proxy
   	C.	Occurred in a dealer market
   	D.	Was facilitated in the secondary market
   	E.	Took place in the primary market

1 points

QUESTION 14

1. Which one of the following statements concerning net working capital is correct?

   	A.	Net working capital increases when inventory is purchased with cash.
   	B.	Net working capital is the amount of cash a firm currently has available for spending.
   	C.	Net working capital must be a positive value.
   	D.	Total assets must increase if net working capital increases.
   	E.	A decrease in the cash balance also decreases net working capital.

1 points

QUESTION 15

1. Depreciation __________.

   	A.	Is a non-cash expense which increases the net income.
   	B.	Increases the net fixed assets as shown on the balance sheet.
   	C.	Decreases the net fixed assets, net income and operating cash flows.
   	D.	Reduces both taxes and net income.
   	E.	Reduces both the net fixed assets and the costs of a firm.

1 points

QUESTION 16

1. Which of the following are included in the market value of a firm but are excluded from the firms book value?

   1. Value of management skills.
   2. Value of a copyright.
   3. Value of the firms reputation.
   4. Value of employees experience.

   	A.	I only.
   	B.	II only.
   	C.	III and IV only.
   	D.	I, II and III only.
   	E.	I, III and IV only.

1 points

QUESTION 17

1. Which of the following are included in current liabilities?

   1. Note payable to a supplier in eight months.
   2. Amount due from a customer next month.
   3. Account payable to a supplier that is due next week.
   4. Loan payable to the bank in fourteen months.

   	A.	I and III only.
   	B.	II and III only.
   	C.	I, II and III only.
   	D.	I, III and IV only.
   	E.	All of the above.

1 points

QUESTION 18

1. Which one of the following must be true if a firm had a negative cash flow from assets?

   	A.	Newly issued shares of stock were sold.
   	B.	The firm borrowed money.
   	C.	The firm acquired new fixed assets.
   	D.	The firm utilised outside funding.
   	E.	The firm had a loss for the period.

1 points

QUESTION 19

1. A positive cash flow to stockholders indicates which one of the following with certainty?

   	A.	Both the cash flow to assets and the cash flow to creditors must be negative.
   	B.	Both the cash flow to assets and the cash flow to creditors must be positive.
   	C.	No dividends were distributed but new shares of stock were sold.
   	D.	The amount of the sale of common stock exceeded the amount of dividends paid.
   	E.	The dividends paid exceeded the net new equity raised.

1 points

QUESTION 20

1. Which one of the following statements related to an income statement is correct?

   	A.	Depreciation does not affect taxes since it is a non-cash expense.
   	B.	Interest expense increases the amount of tax due.
   	C.	Interest expense is included in operating cash flow.
   	D.	Net income is distributed to dividends and paid-in surplus.
   	E.	Taxes reduce both net income and operating cash flow.