1 Topic 1 Quiz
Due Sep 19 at 11:59pm
Points 10
Questions 10
Available Sep 8 at 12am - Sep 19 at 11:59pm 12 days
Time Limit None
This quiz was locked Sep 19 at 11:59pm.
Attempt History
LATEST
Attempt
Time
Score
Attempt 1
15 minutes
10 out of 10
Score for this quiz: 10 out of 10
Submitted Sep 17 at 12:04pm
This attempt took 15 minutes.
Question 1
1 / 1 pts
The primary goal of financial management is to maximize the current value per share of the existing stock.
Correct!
True
False
Question 2
1 / 1 pts
When owners are managers (such as in a sole proprietorship), a firm will have agency costs.
True
Correct!
False
Question 3
1 / 1 pts
The process of planning and managing a firm's long-term investments is called capital budgeting.
Correct!
True
False
Question 4
1 / 1 pts
A corporation is a business owned by an individual who has unlimited personal liability.
True
Correct!
False
Question 5
1 / 1 pts
Mr. Schwartz wants to start a new business decommissioning nuclear warheads and reactors. The work will involve significant hazards, and he is
concerned about protecting his personal wealth from any losses the business might incur. Therefore, he should structure the business as a
proprietorship.
True
Correct!
False
Question 6
1 / 1 pts
The best definition of capital markets is a venue where long-term debt and equity securities are bought and sold.
Correct!
True
False
Question 7
1 / 1 pts
The management of the firm's short-term assets and liabilities is called capital structure.
True
Correct!
False
Question 8
1 / 1 pts
An example of a primary market transaction is dealer buying newly issued shares of stock from a corporation.
Correct!
True
False
Question 9
1 / 1 pts
Maximization of the current earnings of the firm is the main goal of the financial manager.
True
Correct!
False
Question 10
1 / 1 pts
An agency problem is said to exist when there is a conflict of interest between a principal and his or her agent.
Correct!
True
False
Quiz Score: 10 out of 10