FIN 571 Week 1 Quiz
1.
Which of the following business organizational forms subjects the owner(s) to
unlimited liability?
2.
Which of the following business organizational forms is easiest to raise
capital?
3.
Which organizational form best enables the owners of the firm to monitor the
actions of other owners of the same firm?
4.
Which of the following factors or activities can be controlled by the
management of the firm?
5.
The legal system and market forces impose substantial costs on individuals and
institutions that engage in unethical behaviour. Which of the following would
not be an example of the above?
6.
The most common reason that corporate firms use the futures and options markets
is
7.
Galan Associates prepared its financial statement for 2008 based on the
information given here. The company had cash worth $1,234, inventory
worth $13,480, and accounts receivables of $7,789. The company’s
net fixed assets are $42,331, and other assets are $1,822. It had
accounts payables of $9,558, notes payables of $2,756, common stock
of $22,000, and retained earnings of $14,008. How much long-term
debt does the firm have?
8.
Tre-Bien Bakeries generated net income of $233,412 this year. At year end, the
company had
accounts
receivables of $47,199, inventory of $63,781, and cash of $21,461. It also had
accounts payables of $51,369, short-term notes payables of $11,417, and accrued
taxes of $6,145. The net working capital of the firm is
9.
Which of the following best represents cash flows to investors?
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