Question 1

Which of the following is a reason why companies move into international operations?

Accepted Answer

A)  To take advantage of lower production costs in regions of inexpensive labor.
B)  To develop new markets for their finished products.
C)  To better serve their primary customers.
D)  Because important raw materials are located abroad.
E)  All of the above.F) A) and D)
G) A) and C)

Question 2

Which of the following statements is correct?

Accepted Answer

A)  The corporate bylaws are the set of rules drawn up by the state to enable managers to run the firm in accordance with state laws.
B)  Procedures for electing corporate directors are contained in bylaws while the declaration of the activities that the firm will pursue and the number of directors are included in the corporate charter.
C)  Procedures which govern changes in the bylaws of the corporation are contained in the corporate charter.
D)  Although most companies design a charter, only the bylaws are legally required to be filed with the secretary of state in order for a corporation to be in official existence.E) C) and D)
F) A) and B)

Question 3

The finance function is relatively independent of most other corporate functions.Marketing decisions, for example, might affect the firm's need for funds but are not affected by conditions in financial markets or other financing issues.

Accepted Answer

A) True 
 B)False

Question 4

In the United States, the most common form of business is the of the sales and profits is the ____.

Accepted Answer

A)  corporation; corporation
B)  corporation; proprietorship
C)  proprietorship; partnership
D)  proprietorship; corporation
E)  corporation; partnership, and the form of business that generates mostF) A) and B)
G) A) and E)

Question 5

In a competitive marketplace, if managers deviate too far from making decisions that are consistent with stockholder wealth maximization, they risk being disciplined by the market.Part of this discipline involves the threat of being taken over by groups who are more aligned with stockholder interests.

Accepted Answer

A) True 
 B)False

Question 6

If a firm's managers want to maximize stock price it is in their best interests to operate efficient, low-cost plants, develop new and safe products that consumers want, and maintain good relationships with customers, suppliers, creditors, and the communities in which they operate.

Accepted Answer

A) True 
 B)False

Question 7

Nations do not have the sovereignty to expropriate the assets of a firm without compensation.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following statements about the corporate form of business organization is incorrect?

Accepted Answer

A)  The corporation is the easiest form of business organization to establish.
B)  In the United States, corporations generate a significantly greater percentage of total annual sales than either partnerships or proprietorships.
C)  Corporations generally are larger than either partnerships or proprietorships.
D)  One of the most important features of the corporate form of business organization is that stockholders have limited liability.
E)  None of the above.F) A) and B)
G) A) and C)

Question 9

In a competitive marketplace "good ethics" is a wonderful idea but an impractical standard.There are simply too few benefits to be gained from maintaining high business ethics.

Accepted Answer

A) True 
 B)False

Question 10

The term multinational corporation is used to describe a firm that operates in two more countries.

Accepted Answer

A) True 
 B)False

Question 11

Everything else equal, including firm size, dollar sales, type of product sold, and so forth, the primary difference between the proprietorship and partnership business forms is that

Accepted Answer

A)  a partnership has more owners than a proprietorship.
B)  the combined personal liability associated with a partnership is significantly less than the combined personal liability associated with a proprietorship.
C)  a partnership generally is easier to form than a proprietorship.
D)  the annual growth rate of a proprietorship is limited by law, whereas the growth rate of a partnership is always potentially unlimited.
E)  there are many more businesses that are formed as partnerships than proprietorships.F) B) and E)
G) A) and C)

Exam 1: An Overview of Managerial Finance

Everything else equal, including firm size, dollar sales, type of product sold, and so forth, the primary difference between the proprietorship and partnership business forms is that

Correct Answer
verified

In a competitive marketplace "good ethics" is a wonderful idea but an impractical standard.There are simply too few benefits to be gained from maintaining high business ethics.

Correct Answer
verified

Which of the following is a reason why companies move into international operations?

Correct Answer
verified

Correct Answer
verified

In the United States, the most common form of business is the of the sales and profits is the ____.

Correct Answer
verified

The term multinational corporation is used to describe a firm that operates in two more countries.

Correct Answer
verified

Which of the following statements is correct?

Correct Answer
verified

If a firm's managers want to maximize stock price it is in their best interests to operate efficient, low-cost plants, develop new and safe products that consumers want, and maintain good relationships with customers, suppliers, creditors, and the communities in which they operate.

Correct Answer
verified

Which of the following statements about the corporate form of business organization is incorrect?

Correct Answer
verified

Nations do not have the sovereignty to expropriate the assets of a firm without compensation.

Correct Answer
verified

The finance function is relatively independent of most other corporate functions.Marketing decisions, for example, might affect the firm's need for funds but are not affected by conditions in financial markets or other financing issues.

Correct Answer
verified

Exam 1: An Overview of Managerial Finance

Everything else equal, including firm size, dollar sales, type of product sold, and so forth, the primary difference between the proprietorship and partnership business forms is that

Correct AnswerverifiedShow Answer

In a competitive marketplace "good ethics" is a wonderful idea but an impractical standard.There are simply too few benefits to be gained from maintaining high business ethics.

Correct AnswerverifiedShow Answer

Which of the following is a reason why companies move into international operations?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

In the United States, the most common form of business is the of the sales and profits is the ____.

Correct AnswerverifiedShow Answer

The term multinational corporation is used to describe a firm that operates in two more countries.

Correct AnswerverifiedShow Answer

Which of the following statements is correct?

Correct AnswerverifiedShow Answer

If a firm's managers want to maximize stock price it is in their best interests to operate efficient, low-cost plants, develop new and safe products that consumers want, and maintain good relationships with customers, suppliers, creditors, and the communities in which they operate.

Correct AnswerverifiedShow Answer

Which of the following statements about the corporate form of business organization is incorrect?

Correct AnswerverifiedShow Answer

Nations do not have the sovereignty to expropriate the assets of a firm without compensation.

Correct AnswerverifiedShow Answer

The finance function is relatively independent of most other corporate functions.Marketing decisions, for example, might affect the firm's need for funds but are not affected by conditions in financial markets or other financing issues.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

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Correct Answer
verified

Correct Answer
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Correct Answer
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