When evaluating the timing of a project’s projected cash flows, a financial manager is analyzing:

Which one of the following functions should be the responsibility of the controller rather than the treasurer?

Multiple Choice

Depositing cash receipts

Processing cost reports

Analyzing equipment purchases

Approving credit for a customer

Paying a vendor

The treasurer of a corporation generally reports directly to the:

Multiple Choice

board of directors.

chairman of the board.

chief executive officer.

president.

vice president of finance.

An example of a capital budgeting decision is deciding:

Multiple Choice

how many shares of stock to issue.

whether or not to purchase a new machine for the production line.

how to refinance a debt issue that is maturing.

how much inventory to keep on hand.

how much money should be kept in the checking account.

When evaluating the timing of a project’s projected cash flows, a financial manager is analyzing:

Multiple Choice

the amount of each expected cash flow.

only the start-up costs that are expected to require cash resources.

only the date of the final cash flow related to the project.

the amount by which cash receipts are expected to exceed cash outflows.

when each cash flow is expected to occur.

Capital structure decisions include determining:

Multiple Choice

which one of two projects to accept.

how to allocate investment funds to multiple projects.

the amount of funds needed to finance customer purchases of a new product.

how much debt should be assumed to fund a project.

how much inventory will be needed to support a project.

The decision to issue additional shares of stock is an example of:

Multiple Choice

working capital management.

a net working capital decision.

capital budgeting.

a controller's duties.

a capital structure decision.

Which one of the following questions is a working capital management decision?

Multiple Choice

Should the company issue new shares of stock or borrow money?

Should the company update or replace its older equipment?

How much inventory should be on hand for immediate sale?

Should the company close one of its current stores?

How much should the company borrow to buy a new building?

Which one of the following terms is defined as the management of a firm's long-term investments?

Multiple Choice

Working capital management

Financial allocation

Agency cost analysis

Capital budgeting

Capital structure

Which one of the following terms is defined as the mixture of a firm's debt and equity financing?

Multiple Choice

Working capital management

Cash management

Cost analysis

Capital budgeting

Capital structure

Financial managers should primarily focus on the interests of:

Multiple Choice

stakeholders.

the vice president of finance.

their immediate supervisor.

shareholders.

the board of directors.

Which one of the following best states the primary goal of financial management?

Multiple Choice

Maximize current dividends per share

Maximize the current value per share

Increase cash flow and avoid financial distress

Minimize operational costs while maximizing firm efficiency

Maintain steady growth while increasing current profits

Which one of the following best illustrates that the management of a firm is adhering to the goal of financial management?

Multiple Choice

An increase in the amount of the quarterly dividend

A decrease in the per unit production costs

An increase in the number of shares outstanding

A decrease in the net working capital

An increase in the market value per share

Financial managers should strive to maximize the current value per share of the existing stock to:

Multiple Choice

guarantee the company will grow in size at the maximum possible rate.

increase employee salaries.

best represent the interests of the current shareholders.

increase the current dividends per share.

provide managers with shares of stock as part of their compensation.

Which one of the following parties has ultimate control of a corporation?

Multiple Choice

Chairman of the board

Board of directors

Chief executive officer

Chief operating officer

Shareholders

Which of the following parties are considered stakeholders of a firm?

Multiple Choice

Employees and the government

Long-term creditors

Government and common stockholders

Common stockholders

Long-term creditors and common stockholders

Which one of the following represents a cash outflow from a corporation?

Multiple Choice

Issuance of new securities

Payment of dividends

New loan proceeds

Receipt of tax refund

Initial sale of common stock