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16 Cards in this Set
- Front
- Back
- 3rd side (hint)
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Define shareholder wealth maximization |
Maximizing the price of existing common stock. |
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Which of the following cold of the form are synonymous (equivalent) to the maximization of shareholder wealth |
Maximization of the total market value of the firm’s total stock |
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A corporate treasures is typically responsible for what duties? |
Capital expenditures Credit management Cash management |
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Which of the following categories of owners have limited liability |
Shareholders of a corporation |
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True or false. In sole proprietorship, the owner is personally responsible without limitation for the liabilities incurred. |
True |
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True or False. When making financial decisions, managers should always look at marginal or incremental cash flows |
True |
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True or false |
Investors will be indifferent between two investments if both investments have the same expected return |
False |
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Which of the following forms of business organizations has the greatest ability to attract bee capital? |
Corporation |
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To measure value, the concept of time value of money is used |
To bring the future benefits and costs of a project, measured by its cash flow, back to the future |
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Joe is deciding weather or not to invest 100,000 in a business that has pending lawsuits against if. If Joe invests and the business loses the lawsuits, the most Jose can lose is |
10,000 if Joe is a limited partner. |
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All of the following forms of business organizations provide limited liability to all owners EXCEPT |
Limited partnership |
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True or False. In a limited partnership at least one general partner must exist; that general partners has unlined liability’s |
True |
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Which of the following forms of business organizations limit the liability of owners? |
Corporation |
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T/F: S-type corporations and limited liability companies are taxed like partnerships, but have the advantage of limited liability for their owners. |
True |
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Company A reports sales of $100,000 and net income of 15,000. Company B reports sales of 100.000 and net income of $10,000. Therefore _______________ |
Company A’s cash flow may be higher or lower than Company B’s cash flow even though A’s net income is higher |
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T/F: An efficient marker is one where the prices of the assets traded in that market fully reflect all available information at any instant time. |
True |
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