Corporate Finance Study Set 12

Business

Quiz 1 :

Introduction to Corporate Finance

Quiz 1 :

Introduction to Corporate Finance

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The need to manage net working capital arises because:
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C

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Which of the following is not considered one of the basic questions of corporate finance?
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B

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A corporate security can be viewed as a contingent claim on the firm. This means that:
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A

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Using the balance sheet model of the firm, finance may be thought of as analysis of three primary subject areas. Which of the following groups correctly lists these three areas?
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The cheapest business entity to form is typically the:
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The Simple Corporation has outstanding obligation to the Complex Corporation of $250. It is year-end and the total cash flow of Simple from all sources is $325. The contingent payoff to the debtholders and the equity shareholders is:
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Inventory is a component of:
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The balance sheet is made up of what five key components:
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In a general partnership, the general partners have _____ liability and have _____ control over day-to-day operations.
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If a firm has debt outstanding the contingent claim of an equity shareholder is:
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Time preference refers to the fact that:
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Which one of these is a cash outflow from a corporation?
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The Splitz Corporation has borrowed $5 million in debt with a promise to repay $5.5 million in one year. The corporation had 10 million shares outstanding worth $2 each at the time of the borrowing. Splitz earns $6 million during the year. What is the debtholder's contingent claim; how much do the debtholders receive; and, how much do the equity holders receive?
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The division of profits and losses among the members of a partnership is formalized in the:
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In the managerial structure of the corporation the two officers and their responsibilities that report directly to the Chief Financial Officer are:
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The general partner(s) in a general partnership agree to share work, costs and profits and losses. Each partner:
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Value is created and recognized over time if:
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In terms of the balance sheet model of the firm, the value of the firm in financial markets is equal to:
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The Splitz Corporation has borrowed $5 million in debt with a promise to repay $5.5 million in one year. The corporation had 10 million shares outstanding worth $2 each at the time of the borrowing. Splitz earns $5 million during the year. What is the debtholder's contingent claim; how much does the debtholder receive; and, how much do the equity holders receive?
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The ultimate control of a corporation lies in the hands of the corporate:
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