Fundamentals Of Corporate Finance 9th Canadian Edition By Ross-Test Bank
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Test Bank For Principles Of Business Economics 9th Canadian Edition By Ross
ISBN: 9781259087585 , 9781259087585 ,1259087581
SELECT THE CORRECT OPTION. Choose the one alternative that most accurately completes the statement or responds to the question.
1) Which of the subsequent actions can most appropriately be identified as an agency problem? | 1) |
- Providing incentives to management based on the quantity of new store locations opened within the year.
- Setting incentives for management tied to specific financial objectives.
- Approving a project that boosts both management compensations and the company’s stock market value.
- Mandating shareholder approval for all management compensation determinations.
- Assigning bonuses to management linked to the present market value of the company’s stock.
Answer: A
Explanation: A)
B)
C)
D)
E)
2) What exactly represents the key advantage of being a limited | 2) | |
partner rather than a general partner? | ||
A) Entitlement to a bigger share of the partnership’s earnings. | ||
B) Liability for firm debts restricted to the invested capital. | ||
C) Increased management obligations. | ||
D) Capability to oversee the day-to-day activities of the enterprise. | ||
E) Absence of potential financial risks. | ||
Answer: B | ||
Explanation: | A) | |
B) | ||
C) | ||
D) | ||
E) | ||
3) Which one of the following items is not linked to working capital management | 3) | |
decisions? | ||
A) Short-term debts. | ||
B) Accounts receivable. | ||
C) Long-term debts. | ||
D) Stock inventory. | ||
E) Accounts payable. | ||
Answer: C | ||
Explanation: | A) | |
B) | ||
C) | ||
D) | ||
E) |
1
- The corporate official mainly responsible for duties related to tax management, cost accounting, financial accounting, and data handling is the:
- Chairman of the Board.
- Corporate Treasurer.
- Vice President of Operations.
- Corporate Controller.
Answer: E
Explanation: A)
B)
C)
D)
E)
- The corporate official mainly responsible for duties related to cash and credit management, financial planning, and capital expenditures is the:
- Corporate Controller.
- Chairman of the Board.
- Vice President of Operations.
- Corporate Treasurer.
Answer: D
Explanation: A)
B)
C)
D)
E)
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