羅斯公司理財chap001全英文題庫及答案

Chapter01-IntroductiontoCorporateFinanceChapter01IntroductiontoCorporateFinanceAnswerKeyMultipleChoiceQuestions1.Thepersongenerallydirectlyresponsibleforoverseeingthetaxmanagement,costaccounting,financialaccounting,andinformationsystemfunctionsisthe:A.treasurer.B.director.C.controller.D.chairmanoftheboard.E.chiefexecutiveofficer.Difficultylevel:EasyTopic:CONTROLLERType:DEFINITIONS2.Thepersongenerallydirectlyresponsibleforoverseeingthecashandcreditfunctions,financialplanning,andcapitalexpendituresisthe:A.treasurer.B.director.C.controller.D.chairmanoftheboard.E.chiefoperationsofficer.1-1Chapter01-IntroductiontoCorporateFinance3.Theprocessofplanningandmanagingafirm'slong-terminvestmentsiscalled:A.workingcapitalmanagement.B.financialdepreciation.C.agencycostanalysis.D.capitalbudgeting.E.capitalstructure.Difficultylevel:EasyTopic:CAPITALBUDGETINGType:DEFINITIONS4.Themixtureofdebtandequityusedbyafirmtofinanceitsoperationsiscalled:A.workingcapitalmanagement.B.financialdepreciation.C.costanalysis.D.capitalbudgeting.E.capitalstructure.5.Themanagementofafirm'sshort-termassetsandliabilitiesiscalled:A.workingcapitalmanagement.B.debtmanagement.C.equitymanagement.D.capitalbudgeting.E.capitalstructure.1-2Chapter01-IntroductiontoCorporateFinance6.Abusinessownedbyasingleindividualiscalleda:A.corporation.B.soleproprietorship.C.generalpartnership.D.limitedpartnership.E.limitedliabilitycompany.7.Abusinessformedbytwoormoreindividualswhoeachhaveunlimitedliabilityforbusinessdebtsiscalleda:A.corporation.B.soleproprietorship.C.generalpartnership.D.limitedpartnership.E.limitedliabilitycompany.8.Thedivisionofprofitsandlossesamongthemembersofapartnershipisformalizedinthe:A.indemnityclause.B.indenturecontract.C.statementofpurpose.D.partnershipagreement.E.groupcharter.9.Abusinesscreatedasadistinctlegalentitycomposedofoneormoreindividualsorentitiesiscalleda:A.corporation.B.soleproprietorship.C.generalpartnership.D.limitedpartnership.E.unlimitedliabilitycompany.Difficultylevel:EasyTopic:CORPORATIONType:DEFINITIONS1-3Chapter01-IntroductiontoCorporateFinance10.Thecorporatedocumentthatsetsforththebusinesspurposeofafirmisthe:A.indenturecontract.B.statetaxagreement.C.corporatebylaws.D.debtcharter.E.articlesofincorporation.11.Therulesbywhichcorporationsgovernthemselvesarecalled:A.indentureprovisions.B.indemnityprovisions.C.charteragreements.D.bylaws.E.articlesofincorporation.12.Abusinessentityoperatedandtaxedlikeapartnership,butwithlimitedliabilityfortheowners,iscalleda:A.limitedliabilitycompany.B.generalpartnership.C.limitedproprietorship.D.soleproprietorship.E.corporation.13.Theprimarygoaloffinancialmanagementisto:A.maximizecurrentdividendspershareoftheexistingstock.B.maximizethecurrentvaluepershareoftheexistingstock.C.avoidfinancialdistress.D.minimizeoperationalcostsandmaximizefirmefficiency.E.maintainsteadygrowthinbothsalesandnetearnings.14.Aconflictofinterestbetweenthestockholdersandmanagementofafirmiscalled:A.stockholders'liability.B.corporatebreakdown.C.theagencyproblem.D.corporateactivism.E.legalliability.1-4Chapter01-IntroductiontoCorporateFinance15.Agencycostsreferto:A.thetotaldividendspaidtostockholdersoverthelifetimeofafirm.B.thecoststhatresultfromdefaultandbankruptcyofafirm.C.corporateincomesubjecttodoubletaxation.D.thecostsofanyconflictsofinterestbetweenstockholdersandmanagement.E.thetotalinterestpaidtocreditorsoverthelifetimeofthefirm.16.Astakeholderis:A.anypersonorentitythatownssharesofstockofacorporation.B.anypersonorentitythathasvotingrightsbasedonstockownershipofacorporation.C.apersonwhoinitiallystartedafirmandcurrentlyhasmanagementcontroloverthecashflowsofthefirmduetohis/hercurrentownershipofcompanystock.D.acreditortowhomthefirmcurrentlyowesmoneyandwhoconsequentlyhasaclaimonthecashflowsofthefirm.E.anypersonorentityotherthanastockholderorcreditorwhopotentiallyhasaclaimonthecashflowsofthefirm.17.TheSarbanesOxleyActof2002isintendedto:A.protectfinancialmanagersfrominvestors.B.nothaveanyeffectonforeigncompanies.C.reducecorporaterevenues.D.protectinvestorsfromcorporateabuses.E.decreaseauditcostsforU.S.firms.18.Thetreasurerandthecontrollerofacorporationgenerallyreporttothe:A.boardofdirectors.B.chairmanoftheboard.C.chiefexecutiveofficer.D.president.E.chieffinancialofficer.19.Whichoneofthefollowingstatementsiscorrectconcerningtheorganizationalstructureofacorporation?A.Thevicepresidentoffinancereportstothechairmanoftheboard.B.Thechiefexecutiveofficerreportstotheboardofdirectors.C.Thecontrollerreportstothepresident.D.Thetreasurerreportstothechiefexecutiveofficer.E.Thechiefoperationsofficerreportstothevicepresidentofproduction.Difficultylevel:MediumTopic:ORGANIZATIONALSTRUCTUREType:CONCEPTS1-5Chapter01-IntroductiontoCorporateFinance20.Whichoneofthefollowingisacapitalbudgetingdecision?A.determininghowmuchdebtshouldbeborrowedfromaparticularlenderB.decidingwhetherornottoopenanewstoreC.decidingwhentorepayalong-termdebtD.determininghowmuchinventorytokeeponhandE.determininghowmuchmoneyshouldbekeptinthecheckingaccount21.TheSarbanesOxleyActwasenactedin:A.1952.B.1967.C.1998.D.2002.E.2006.22.SincetheimplementationofSarbanes-Oxley,thecostofgoingpublicintheUnitedStateshas:A.increased.B.decreased.C.remainedaboutthesame.D.beenerratic,butovertimehasdecreased.E.ItisimpossibletotellsinceSarbanes-Oxleycompliancedoesnotinvolvedirectcosttothefirm.23.Workingcapitalmanagementincludesdecisionsconcerningwhichofthefollowing?I.accountspayableII.long-termdebtIII.accountsreceivableIV.inventoryA.IandIIonlyB.IandIIIonlyC.IIandIVonlyD.I,II,andIIIonlyE.I,III,andIVonlyDifficultylevel:MediumTopic:WORKINGCAPITALMANAGEMENTType:CONCEPTS1-6Chapter01-IntroductiontoCorporateFinance24.Workingcapitalmanagement:A.ensuresthatsufficientequipmentisavailabletoproducetheamountofproductdesiredonadailybasis.B.ensuresthatlong-termdebtisacquiredatthelowestpossiblecost.C.ensuresthatdividendsarepaidtoallstockholdersonanannualbasis.D.balancestheamountofcompanydebttotheamountofavailableequity.E.isconcernedwiththeupperportionofthebalancesheet.Difficultylevel:EasyTopic:WORKINGCAPITALMANAGEMENTType:CONCEPTS25.Whichoneofthefollowingstatementsconcerningasoleproprietorshipiscorrect?A.Asoleproprietorshipistheleastcommonformofbusinessownership.B.Theprofitsofasoleproprietorshiparetaxedtwice.C.Theownersofasoleproprietorshipshareprofitsasestablishedbythepartnershipagreement.D.Theownerofasoleproprietorshipmaybeforcedtosellhis/herpersonalassetstopaycompanydebts.E.Asoleproprietorshipisoftenstructuredasalimitedliabilitycompany.Difficultylevel:EasyTopic:SOLEPROPRIETORSHIPType:CONCEPTS26.Whichoneofthefollowingstatementsconcerningasoleproprietorshipiscorrect?A.Thelifeofthefirmislimitedtothelifespanoftheowner.B.Theownercangenerallyraiselargesumsofcapitalquiteeasily.C.Theownershipofthefirmiseasytotransfertoanotherindividual.D.Thecompanymustpayseparatetaxesfromthosepaidbytheowner.E.Thelegalcoststoformasoleproprietorshiparequitesubstantial.Difficultylevel:EasyTopic:SOLEPROPRIETORSHIPType:CONCEPTS1-7Chapter01-IntroductiontoCorporateFinance27.Whichoneofthefollowingbestdescribestheprimaryadvantageofbeingalimitedpartnerratherthanageneralpartner?A.entitlementtoalargerportionofthepartnership'sincomeB.abilitytomanagetheday-to-dayaffairsofthebusinessC.nopotentialfinanciallossD.greatermanagementresponsibilityE.liabilityforfirmdebtslimitedtothecapitalinvestedDifficultylevel:EasyTopic:PARTNERSHIPType:CONCEPTS28.Ageneralpartner:A.haslesslegalliabilitythanalimitedpartner.B.hasmoremanagementresponsibilitythanalimitedpartner.C.facesdoubletaxationwhereasalimitedpartnerdoesnot.D.cannotlosemorethantheamountofhis/herequityinvestment.E.isthetermappliedonlytocorporationswhichinvestinpartnerships.Difficultylevel:EasyTopic:PARTNERSHIPType:CONCEPTS29.Apartnership:A.istaxedthesameasacorporation.B.agreementdefineswhetherthebusinessincomewillbetaxedlikeapartnershiporacorporation.C.terminatesatthedeathofanygeneralpartner.D.haslessofanabilitytoraisecapitalthanaproprietorship.E.allowsforeasytransferofinterestfromonegeneralpartnertoanother.Difficultylevel:EasyTopic:PARTNERSHIPType:CONCEPTS1-8Chapter01-IntroductiontoCorporateFinance30.Whichofthefollowingaredisadvantagesofapartnership?I.limitedlifeofthefirmII.personalliabilityforfirmdebtIII.greaterabilitytoraisecapitalthanasoleproprietorshipIV.lackofabilitytotransferpartnershipinterestA.IandIIonlyB.IIIandIVonlyC.IIandIIIonlyD.I,II,andIVonlyE.I,III,andIVonlyDifficultylevel:MediumTopic:PARTNERSHIPType:CONCEPTS31.Whichofthefollowingareadvantagesofthecorporateformofbusinessownership?I.limitedliabilityforfirmdebtII.doubletaxationIII.abilitytoraisecapitalIV.unlimitedfirmlifeA.IandIIonlyB.IIIandIVonlyC.I,II,andIIIonlyD.II,III,andIVonlyE.I,III,andIVonlyDifficultylevel:MediumTopic:CORPORATIONType:CONCEPTS32.Whichoneofthefollowingstatementsiscorrectconcerningcorporations?A.Thelargestfirmsareusuallycorporations.B.Themajorityoffirmsarecorporations.C.Thestockholdersareusuallythemanagersofacorporation.D.Theabilityofacorporationtoraisecapitalisquitelimited.E.Theincomeofacorporationistaxedaspersonalincomeofthestockholders.Difficultylevel:EasyTopic:CORPORATIONType:CONCEPTS1-9Chapter01-IntroductiontoCorporateFinance33.Whichoneofthefollowingstatementsiscorrect?A.Bothpartnershipsandcorporationsincurdoubletaxation.B.Bothsoleproprietorshipsandpartnershipsaretaxedinasimilarfashion.C.Partnershipsarethemostcomplicatedtypeofbusinesstoform.D.Bothpartnershipsandcorporationshavelimitedliabilityforgeneralpartnersandshareholders.E.Alltypesofbusinessformationshavelimitedlives.Difficultylevel:MediumTopic:BUSINESSTYPESType:CONCEPTS34.Thearticlesofincorporation:A.canbeusedtoremovecompanymanagement.B.areamendedannuallybythecompanystockholders.C.setforththenumberofsharesofstockthatcanbeissued.D.setforththerulesbywhichthecorporationregulatesitsexistence.E.cansetforththeconditionsunderwhichthefirmcanavoiddoubletaxation.35.Thebylaws:A.establishthenameofthecorporation.B.areruleswhichapplyonlytolimitedliabilitycompanies.C.setforththepurposeofthefirm.D.mandatetheprocedureforelectingcorporatedirectors.E.setforththeprocedurebywhichthestockholderselecttheseniormanagersofthefirm.36.Theownersofalimitedliabilitycompanyprefer:A.beingtaxedlikeacorporation.B.havingliabilityexposuresimilartothatofasoleproprietor.C.beingtaxedpersonallyonallbusinessincome.D.havingliabilityexposuresimilartothatofageneralpartner.E.beingtaxedlikeacorporationwithliabilitylikeapartnership.Difficultylevel:MediumTopic:LIMITEDLIABILITYCOMPANYType:CONCEPTS1-10Chapter01-IntroductiontoCorporateFinance37.Whichoneofthefollowingbusinesstypesisbestsuitedtoraisinglargeamountsofcapital?A.soleproprietorshipB.limitedliabilitycompanyC.corporationD.generalpartnershipE.limitedpartnershipDifficultylevel:EasyTopic:CORPORATIONType:CONCEPTS38.Whichtypeofbusinessorganizationhasalltherespectiverightsandprivilegesofalegalperson?A.soleproprietorshipB.generalpartnershipC.limitedpartnershipD.corporationE.limitedliabilitycompanyDifficultylevel:EasyTopic:CORPORATIONType:CONCEPTS39.Financialmanagersshouldstrivetomaximizethecurrentvaluepershareoftheexistingstockbecause:A.doingsoguaranteesthecompanywillgrowinsizeatthemaximumpossiblerate.B.doingsoincreasesthesalariesofalltheemployees.C.thecurrentstockholdersaretheownersofthecorporation.D.doingsomeansthefirmisgrowinginsizefasterthanitscompetitors.E.themanagersoftenreceivesharesofstockaspartoftheircompensation.Difficultylevel:EasyTopic:GOALOFFINANCIALMANAGEMENTType:CONCEPTS1-11Chapter01-IntroductiontoCorporateFinance40.Thedecisionsmadebyfinancialmanagersshouldallbeoneswhichincreasethe:A.sizeofthefirm.B.growthrateofthefirm.C.marketabilityofthemanagers.D.marketvalueoftheexistingowners'equity.E.financialdistressofthefirm.Difficultylevel:EasyTopic:GOALOFFINANCIALMANAGEMENTType:CONCEPTS41.Whichoneofthefollowingactionsbyafinancialmanagercreatesanagencyproblem?A.refusingtoborrowmoneywhendoingsowillcreatelossesforthefirmB.refusingtolowersellingpricesifdoingsowillreducethenetprofitsC.agreeingtoexpandthecompanyattheexpenseofstockholders'valueD.agreeingtopaybonusesbasedonthebookvalueofthecompanystockE.increasingcurrentcostsinordertoincreasethemarketvalueofthestockholders'equity42.Whichofthefollowinghelpconvincemanagerstoworkinthebestinterestofthestockholders?I.compensationbasedonthevalueofthestockII.stockoptionplansIII.threatofaproxyfightIV.threatofconversiontoapartnershipA.IandIIonlyB.IIandIIIonlyC.I,IIandIIIonlyD.IandIIIonlyE.I,II,III,andIVDifficultylevel:MediumTopic:AGENCYPROBLEMType:CONCEPTS1-12Chapter01-IntroductiontoCorporateFinance43.Whichformofbusinessstructurefacesthegreatestagencyproblems?A.soleproprietorshipB.generalpartnershipC.limitedpartnershipD.corporationE.limitedliabilitycompany44.Aproxyfightoccurswhen:A.theboardsolicitsrenewalofcurrentmembers.B.agroupsolicitsproxiestoreplacetheboardofdirectors.C.acompetitorofferstoselltheirownershipinthefirm.D.thefirmfilesforbankruptcy.E.thefirmisdeclaredinsolvent.45.Whichoneofthefollowingpartiesisconsideredastakeholderofafirm?A.employeeB.short-termcreditorC.long-termcreditorD.preferredstockholderE.commonstockholderDifficultylevel:EasyTopic:STAKEHOLDERSType:CONCEPTS46.WhichofthefollowingarekeyrequirementsoftheSarbanes-OxleyAct?I.Officersofthecorporationmustreviewandsignannualreports.II.Officersofthecorporationmustnowownmorethan5%ofthefirm'sstock.III.AnnualreportsmustlistdeficienciesininternalcontrolsIV.AnnualreportsmustbefiledwiththeSECwithin30daysofyearend.A.IonlyB.IIonlyC.IandIIIonlyD.IIandIIIonlyE.IIandIVonlyDifficultylevel:MediumTopic:SARBANES-OXLEYType:CONCEPTS1-13Chapter01-IntroductiontoCorporateFinance47.Insidertradingis:A.legal.B.illegal.C.impossibletohaveinourefficientmarket.D.discouraged,butlegal.E.listonlythesecuritiesofthelargestfirms.48.Soleproprietorshipsarepredominantlystartedbecause:A.theyareeasilyandcheaplysetup.B.theproprietorshiplifeislimitedtothebusinessowner'slife.C.allbusinesstaxesarepaidasindividualtax.D.Alloftheabove.E.Noneoftheabove.Difficultylevel:EasyTopic:SOLEPROPRIETORSHIPSType:CONCEPTS49.Managersareencouragedtoactinshareholders'interestsby:A.shareholderelectionofaboardofdirectorswhoselectmanagement.B.thethreatofatakeoverbyanotherfirm.C.compensationcontractsthattiecompensationtocorpora