BA 323 HW Ch 1 – Flashcards

Jenna has been promoted and is now in charge of all external financing. In other words, she is in charge of:

Uptown Markets is financed with 45 percent debt and 55 percent equity. This mixture of debt and equity is referred to as the firm's:

Theo's BBQ has $48,000 in current assets and $39,000 in current liabilities. Decisions related to these accounts as referred to as:

Margie opened a used bookstore and is both the 100 percent owner and the store's manager. Which type of business entity does Margie own if she is personally liable for all the store's debts?

The potential conflict of interest between a firm's owners and its managers is referred to as which type of conflict?

Jamie is employed as a currency trader in the Japanese yen market. Her job falls into which one of the following areas of finance?

If you accept a job as a domestic security analyst for a brokerage firm, you are most likely working in which one of the following financial areas?

Which one of the following occupations best fits into the corporate area of finance?

Which one of the following functions is generally a responsibility assigned to the corporate treasurer?

Which one of the following functions should be assigned to the corporate treasurer rather than to the controller?

Which one of the following applies to a general partnership?

A corporation:

The primary goal of financial management is to maximize:

The primary goal of financial management is most associated with increasing the:

An agency issue is most apt to develop when:

Which one of the following is a working capital decision?

Which one of the following is a capital structure decision?

Working capital management includes which one of the following?

The daily financial operations of a firm are primarily controlled by managing the:

Maria is the sole proprietor of an antique store that is located in a rented warehouse. The store has an outstanding loan with the local bank but no other debt obligations. There are no specific assets pledged as security for the loan. Due to a sudden and unexpected downturn in the economy, the store is unable to generate sufficient funds to pay the loan payments due to the bank. Which of the following options does the bank have to collect the money it is owed? I. Sell the inventory and apply the proceeds to the debt II. Sell the lighting fixtures from the building and apply the proceeds to the debt III. Withdraw funds from Maria's personal account at the bank to pay the store's debt IV. Sell any assets Maria personally owns and apply the proceeds to the store's debt

Which one of the following applies to a general partnership?

One advantage of the corporate form of organization is the:

The primary goal of financial management is most associated with increasing the:

The Sarbanes-Oxley Act of 2002 has:

Which one of the following best describes the primary intent of the Sarbanes-Oxley Act of 2002?

The Sarbanes-Oxley Act:

Which one of the following situations is most apt to create an agency conflict?

Which one of the following is most apt to align management's priorities with shareholders' interests?

Probably the least effective means of aligning management goals with shareholder interests is:

One example of a primary market transaction would be the:

An auction market:

Which one of the following statements is correct?

Which one of the following statements is correct?