Which of the following has not historically been a part of the study of finance?

Question 3 options:

a)	Mergers and acquisitions

b)	Making accounting entries

c)	Raising capital

d)	Bankruptcy

Question 4 (2 points)

The large increase in institutional ownership in public companies

Question 4 options:

a)	Hurts the individual investor by reducing their options

b)	Prevents companies from being able to operate efficiently

c)	Minimizes the role of the board of directors in a corporation

d)	Allows the institutions to put pressure on companies to operate effectively

Question 5 (2 points)

Which of these would increase in the net cash flow to the company?

Question 5 options:

a)	Increasing inventory by $100,000

b)	Selling bonds

c)	Decreasing sales

d)	None of the above would increase the net cash flow

Question 6 (2 points)

What is the most appropriate goal for a firm?

Question 6 options:

a)	Maximizing earnings

b)	Minimizing taxes

c)	Maximizing bondholder wealth

d)	Maximizing shareholder wealth

Question 7 (2 points)

Sales minus cost of goods sold is

Question 7 options:

a)	Gross Profit

b)	Income before interest and taxes

c)	Net income

d)	None of these

Question 8 (2 points)

Agency theory is of most concern in what type of business structure?

Question 8 options:

a)	Sole proprietorship

b)	Partnership

c)	Corporation

d)	In all three equally

Question 9 (2 points)

Which of the following are benefits of a corporation as a form of business organization?

Question 9 options:

a)	Limited liability of the owners

b)	Easy divisibility of ownership

c)	Continual life

d)	All of these

Question 10 (2 points)

Which of these would increase a companys earnings per share?

Question 10 options:

a)	Earnings increasing by 10%

b)	Share price increasing by 10%

c)	Earnings decreasing by 10%

d)	None of the above

Question 11 (2 points)

Which best describes insider trading?

Question 11 options:

a)	A company insider sells shares in the companys stock

b)	A company purchases shares of their own stock in the belief they are undervalued by the market

c)	An investor sells shares based on a management member telling them the company is about to announce lower-than-expected earnings

d)	None of the above describe insider trading

Question 12 (2 points)

All else equal, a higher depreciation expense will increase the companys

Question 12 options:

a)	tax expense

b)	net income

c)	net cash flow

d)	gross profit margin

Question 13 (2 points)

Which of the following are benefits of a sole proprietorship?

Question 13 options:

a)	Easy divisibility of ownership

b)	Limited liability

c)	Continual life

d)	Low organizational costs

Question 14 (2 points)

Which of these is not an activity of financial managers?

Question 14 options:

a)	Managing capital budgeting

b)	Recording accounting transactions as they occur

c)	Determining the best balance of capital sources

d)	Balancing the trade-off between profitability and risk

Question 15 (2 points)

Which of these describes agency theory?

Question 15 options:

	Examines the relationship between the owners and managers of the firm.
	Explains why the interests of owners and management are always aligned.
	Examines who in a company can act as an agent for that company.
	Results from institutional investors having large ownership stakes in publicly traded companies.