1/17/22, 11:24 AM
1.
Assignment Print View
Award: 10.00 points
A firm owned by a single person who has unlimited liability for the firm's debt is called a:
 corporation.
  sole proprietorship.
 general partnership.
 limited partnership.
 limited liability company.
References
Multiple Choice
Learning Objective:
01-03 Articulate the
financial implications
of the different forms
of business
organization.
Difficulty: 1 Basic
Section: 1.2
Corporate Finance
and the Financial
Manager
https://ezto.mheducation.com/hm_finance.tpx
1/13
1/17/22, 11:24 AM
2.
Assignment Print View
Award: 10.00 points
A firm’s mixture of debt and equity financing is the result of its ______ decisions.
 working capital management
 cash management
 cost analysis
 capital budgeting
  capital structure
References
Multiple Choice
Learning Objective:
01-01 Define the
basic types of
financial
management
decisions and the
role of the financial
manager.
Difficulty: 1 Basic
Section: 1.1 Finance: A
Quick Look
https://ezto.mheducation.com/hm_finance.tpx
2/13
1/17/22, 11:24 AM
3.
Assignment Print View
Award: 10.00 points
Which of the following actions would be considered an agency problem?
 An owner of a sole proprietorship takes company office supplies for personal use
 Both partners in a general partnership close the office early one day to go skiing
 A manager in a corporation buys shares of the company’s stock when the price falls
 A manager in a corporation makes online personal travel arrangements during work hours
  A shareholder in a corporation sells shares of the company’s stock when the price rises
References
Multiple Choice
Learning Objective:
01-04 Explain the
conflicts of interest
that can arise
between managers
and owners.
Difficulty: 2
Intermediate
Section: 1.4 The Goal
of Financial
Management
https://ezto.mheducation.com/hm_finance.tpx
3/13
1/17/22, 11:24 AM
4.
Assignment Print View
Award: 10.00 points
Deciding which long-term investment a firm should make is a ______ decision.
 working capital management
 capital constraints
 cost of capital
  capital budgeting
 capital structure
References
Multiple Choice
Learning Objective:
01-01 Define the
basic types of
financial
management
decisions and the
role of the financial
manager.
Difficulty: 1 Basic
Section: 1.1 Finance: A
Quick Look
https://ezto.mheducation.com/hm_finance.tpx
4/13
1/17/22, 11:24 AM
5.
Assignment Print View
Award: 10.00 points
Corporate bylaws:
 must be amended should a firm decide to increase the number of shares authorized.
 cannot be amended once adopted.
 define the name by which the firm will operate.
 describe the intended life and purpose of the organization.
  determine how a corporation regulates itself.
References
Multiple Choice
Learning Objective:
01-03 Articulate the
financial implications
of the different forms
of business
organization.
Difficulty: 1 Basic
Section: 1.2
Corporate Finance
and the Financial
Manager
https://ezto.mheducation.com/hm_finance.tpx
5/13
1/17/22, 11:24 AM
6.
Assignment Print View
Award: 10.00 points
Financial managers should primarily focus on the interests of:
 themselves.
 the vice president of finance.
 their immediate supervisor.
  shareholders.
 the board of directors.
References
Multiple Choice
Learning Objective:
01-02 Explain the
goal of financial
management.
Difficulty: 1 Basic
Section: 1.3 Forms of
Business
Organization
https://ezto.mheducation.com/hm_finance.tpx
6/13
1/17/22, 11:24 AM
7.
Assignment Print View
Award: 10.00 points
Which one of the following best states the primary goal of financial management?
 Maximize current dividends per share
  Maximize the current value per share
 Avoid financial distress
 Maximize profit
 Maintain steady growth while increasing current profits
References
Multiple Choice
Learning Objective:
01-02 Explain the
goal of financial
management.
Difficulty: 1 Basic
Section: 1.3 Forms of
Business
Organization
https://ezto.mheducation.com/hm_finance.tpx
7/13
1/17/22, 11:24 AM
8.
Assignment Print View
Award: 10.00 points
Which one of the following actions by a financial manager is most apt to create an agency problem?
 Refusing to borrow money when doing so will create losses for the firm
 Refusing to lower selling prices if doing so will reduce the net profits
 Refusing to expand the company if doing so will lower the value of the equity
 Agreeing to pay bonuses based on the market value of the company's stock rather than on its
level of sales
  Increasing current profits when doing so lowers the value of the company's equity
References
Multiple Choice
Learning Objective:
01-04 Explain the
conflicts of interest
that can arise
between managers
and owners.
Difficulty: 2
Intermediate
Section: 1.4 The Goal
of Financial
Management
https://ezto.mheducation.com/hm_finance.tpx
8/13
1/17/22, 11:24 AM
9.
Assignment Print View
Award: 10.00 points
Which one of the following is an agency cost?
 Accepting an investment opportunity that will add value to the firm
 Increasing the quarterly dividend
 Investing in a new project that creates firm value
  Hiring outside accountants to audit the company's financial statements
 Closing a division of the firm that is operating at a loss
References
Multiple Choice
Learning Objective:
01-04 Explain the
conflicts of interest
that can arise
between managers
and owners.
Difficulty: 2
Intermediate
Section: 1.4 The Goal
of Financial
Management
https://ezto.mheducation.com/hm_finance.tpx
9/13
1/17/22, 11:24 AM
10.
Assignment Print View
Award: 10.00 points
Which of the following parties are not considered stakeholders of a firm?
rev: 06_21_2021_QC_CS-267758
 Employees
 Government
  Competitors
 Customers
 Suppliers
References
Multiple Choice
Learning Objective:
01-04 Explain the
conflicts of interest
that can arise
between managers
and owners.
Difficulty: 1 Basic
Section: 1.4 The Goal
of Financial
Management
https://ezto.mheducation.com/hm_finance.tpx
10/13
1/17/22, 11:24 AM
11.
Assignment Print View
Award: 10.00 points
Which one of the following is a primary market transaction?
 Sale of currently outstanding stock by a dealer to an individual investor
  Sale of a new share of stock from a corporation to an individual investor
 Transfer of stock ownership from one shareholder to another shareholder
 Gift of stock from one shareholder to a previous non-shareholder
 Repurchase of stock by a corporation from a shareholder
References
Multiple Choice
Learning Objective:
01-03 Articulate the
financial implications
of the different forms
of business
organization.
Difficulty: 2
Intermediate
Section: 1.5 The
Agency Problem and
Control of the
Corporation
https://ezto.mheducation.com/hm_finance.tpx
11/13
1/17/22, 11:24 AM
12.
Assignment Print View
Award: 10.00 points
Eduardo sold 500 shares of Northcutt Corporation stock on the New York Stock Exchange. This
transaction:
 took place in the primary market.
 occurred in a dealer market.
  occurred in the secondary market.
 involved a proxy.
 was a private placement.
References
Multiple Choice
Learning Objective:
01-03 Articulate the
financial implications
of the different forms
of business
organization.
Difficulty: 2
Intermediate
Section: 1.5 The
Agency Problem and
Control of the
Corporation
https://ezto.mheducation.com/hm_finance.tpx
12/13
1/17/22, 11:24 AM
13.
Assignment Print View
Award: 10.00 points
Public offerings of debt and equity must be registered with the:
 New York Board of Governors.
 Federal Reserve.
 NYSE Registration Office.
  Securities and Exchange Commission.
 Market Dealers Exchange.
References
Multiple Choice
Learning Objective:
01-03 Articulate the
financial implications
of the different forms
of business
organization.
Difficulty: 1 Basic
Section: 1.5 The
Agency Problem and
Control of the
Corporation
https://ezto.mheducation.com/hm_finance.tpx
13/13