Ross Test Bank All - Chapter 01 Testbank (static) 1. Which one of th...

Fundamentals of Corporate Finance, 8e (Australia Edition) By Stephen Ross (Test Bank All Chapter, Answers at the end of each Chapter) 1 / 4

© McGraw-Hill Australia Ross, Fundamentals of Corporate Finance, 8e Chapter 01 Testbank (static) Chapter 01 Testbank (static)

1.Which one of the following functions should be the responsibility of the chief accountant rather than the corporate treasurer?A.Depositing cash receipts B.Processing cost reports C.Analysing equipment purchases D.Approving credit for a customer E.Paying a vendor

2.

An example of a capital budgeting decision is deciding:

A.how many company shares to issue.B.whether or not to purchase a new machine for the production line.C.how to refinance a debt issue that is maturing.D.how much inventory to keep on hand.E.how much money should be kept in the bank account.

3.Which one of the following questions is a working capital management decision?A.Should the company issue new company shares or borrow money?B.Should the company update or replace its older equipment?C.How much inventory should be on hand for immediate sale?D.Should the company close one of its current stores?E.How much should the company borrow to buy a new building? 2 / 4

© McGraw-Hill Australia Ross, Fundamentals of Corporate Finance, 8e Chapter 01 Testbank (static)

4.Which one of the following terms is defined as the mixture of a firm's debt and equity financing?A.Working capital management B.Cash management C.Cost analysis D.Capital budgeting E.Capital structure

5.A business owned by a solitary individual who has unlimited liability for the firm's debt is called

a:

A.company.B.sole proprietorship.C.general partnership.D.limited partnership.E.limited liability company.

6.A business created as a distinct legal entity and treated as a legal 'person' is called a(n): A.company.B.sole proprietorship.C.general partnership.D.limited partnership.E.unlimited liability company.

7. 3 / 4

© McGraw-Hill Australia Ross, Fundamentals of Corporate Finance, 8e Chapter 01 Testbank (static) Which of the following individuals have unlimited liability for a firm's debts based on their ownership interest?A.Only general partners B.Only sole proprietors C.All shareholders D.Both limited and general partners E.Both general partners and sole proprietors

8.

A limited partnership:

A.has an unlimited life.B.can opt to be taxed as a corporation.C.terminates at the death of any one limited partner.D.has at least one partner who has unlimited liability for all of the partnership’s debts.E.consists solely of limited partners.

9.

Financial managers should primarily focus on the interests of:

A.stakeholders.B.the vice president of finance.C.their immediate supervisor.D.shareholders.E.the board of directors.

10.Which one of the following best states the primary goal of financial management?A.Maximise current dividends per share

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