1 Topic 1 Quiz

Due Sep 19 at 11:59pm Points 10 Questions 10 Available Sep 8 at 12am - Sep 19 at 11:59pm 12 days Time Limit None

This quiz was locked Sep 19 at 11:59pm.

Attempt History
Attempt Time Score
LATEST Attempt 1 15 minutes 10 out of 10

Score for this quiz: 10 out of 10

Submitted Sep 17 at 12:04pm
This attempt took 15 minutes.

Question 1 1 / 1 pts

The primary goal of financial management is to maximize the current value per share of the existing stock.

Correct!
True

False

Question 2 1 / 1 pts

When owners are managers (such as in a sole proprietorship), a firm will have agency costs.

True

Correct!
False

Question 3 1 / 1 pts

The process of planning and managing a firm's long-term investments is called capital budgeting.

Correct!
True

False

Question 4 1 / 1 pts

A corporation is a business owned by an individual who has unlimited personal liability.

True

Correct!
False

Question 5 1 / 1 pts

Mr. Schwartz wants to start a new business decommissioning nuclear warheads and reactors. The work will involve significant hazards, and he is
concerned about protecting his personal wealth from any losses the business might incur. Therefore, he should structure the business as a
proprietorship.

True

Correct!
False
 Question 6 1 / 1 pts

The best definition of capital markets is a venue where long-term debt and equity securities are bought and sold.

Correct! True

False

Question 7 1 / 1 pts

The management of the firm's short-term assets and liabilities is called capital structure.

True

Correct! False

Question 8 1 / 1 pts

An example of a primary market transaction is dealer buying newly issued shares of stock from a corporation.

Correct! True

False

Question 9 1 / 1 pts

Maximization of the current earnings of the firm is the main goal of the financial manager.

True

Correct! False

Question 10 1 / 1 pts

An agency problem is said to exist when there is a conflict of interest between a principal and his or her agent.

Correct! True

False

Quiz Score: 10 out of 10