You are watching: Why should financial managers strive to maximize the current value per share of the existing stock?
Which among the following appropriately defines the upward chain of command also in a typical corpoprice business structure?A. The chief executive officer reports to the president.B. The vice president of finance reports to the chairman of the board.C. The controller reports to the president.D. The treasurer reports to the vice president of finance.E. The chief operations officer reports to the vice president of production.
Which of the following concerns are addressed by financial managers?I. How should a product be marketed?II. Should customers be provided 30 or 45 days to pay for their credit purchases?III. Should the firm borrow more money?IV. Should the firm obtain brand-new equipment?A. II, III, and IV only.B. II and III just.C. I, II, III, and also IV.D. I and also IV only.E. I, II, and also III only.
Which among the adhering to terms is defined as the mixture of a firm"s debt and also equity financing?A. Cash management.B. Capital budgeting.C. Capital structure.D. Working funding monitoring.E. Cost evaluation.
Which one of the complying with is a funding framework decision?A. Determining exactly how a lot inventory will certainly be necessary to support a job.B. Determining just how to alfind investment funds to multiple projects.C. Determining just how much debt should be assumed to money a task.D. Determining the amount of funds necessary to finance customer purchases of a new product.E. Determining which among 2 projects to accept.
Which among the complying with finest says the primary goal of financial management?A. Minimize operational expenses while maximizing firm efficiency.B. Increase cash circulation and also stop financial distress.C. Maintain stable expansion while boosting current revenues.D. Maximize current dividends per share.E. Maximize the present worth per share.
Which one of the adhering to best illustprices that the monitoring of a firm is adhering to the goal of financial management? A. Increase in the sector value per share.B. Increase in the amount of the quarterly dividfinish. C. Increase in the number of shares impressive.D. Decrease in the net working capital.E. Decrease in the per unit manufacturing prices.
Financial managers need to generally focus on the interests of:A. The vice president of finance.B. The board of directors.C. Shareholders.D. Their immediate supervisor.E. Stakeholders.
Decisions made by financial managers should primarily focus on raising which among the following?A. Market value per share of impressive stock.B. Gross profit per unit produced.C. Growth rate of the firm.D. Total sales.E. Size of the firm.
Why have to financial managers strive to maximize the existing value per share of the existing stock?A. Since this will certainly rise the current dividends per share.B. Doing so increases employee salaries.C. Since they have been hired to recurrent the interests of the current shareholders.D. Doing so guarantees the company will certainly thrive in size at the maximum possible price.E. Because supervisors regularly obtain shares of stock as part of their compensation.
A service formed by 2 or even more people who each have boundless licapability for all of the firm"s service debts is called a: A. Corporation.B. Limited partnership.C. Sole proprietorship.D. General partnership.E. Limited liability company.
Corpoprice bylaws: A. Determine just how a corporation regulates itself.B. Cannot be amfinished when adopted.C. Must be amfinished need to a firm decide to boost the variety of shares authorized.D. Describe the intfinished life and objective of the company.E. Define the name through which the firm will run.
A restricted partnership: A. Consists specifically of restricted partners.B. Has an boundless life.C. Has a better capacity to raise funding than a sole proprietorship.D. Terminates at the death of any kind of limited partner.E. Can opt to be taxed as a corporation.
Which among the adhering to statements is correct? A. Corpoprice shareholders elect the corporate president.B. The majority of firms in the U.S. are structured as corporations.C. Corporations have the right to raise huge amounts of resources mostly simpler than partnerships can.D. Corporate earnings are taxable inconcerned the shareholders once earned.E. Stockholders challenge no potential losses regarded their corporate investment.
Sally and Alicia currently are general partners in a business situated in Atlanta, Georgia. They are content through their existing taxes situation but are both extremely uncomfortable via the boundless licapacity to which they are each subjected. Which form of service entity have to they think about to relocation their basic partnership assuming they wish to remajor the just two owners of their business? Whichever organization they pick, they wish to be treated equally. A. Limited liability company.B. Joint stock agency.C. Sole proprietorship.D. Corporation.E. Limited partnership.
Which one of the adhering to terms is defined as a problem of interest in between the corporate shareholders and the corporate managers? A. Legal licapacity.B. Articles of incorporation.C. Corpoprice breakdvery own.D. Agency problem.E. Bylaws.
Which among the adhering to is an agency cost? A. Cshedding a division of the firm that is operating at a loss.B. Hiring outside accountants to audit the company"s financial statements.C. Investing in a new job that creates firm worth.D. Increasing the quarterly dividfinish.E. Accepting an investment opportunity that will certainly add value to the firm.
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Which one of the adhering to actions by a financial manager is most apt to produce an firm problem? A. Increasing existing revenues once doing so lowers the worth of the firm"s equity.B. Refusing to borrow money as soon as doing so will create losses for the firm.C. Refutilizing to expand the firm if doing so will certainly lower the value of the equity.D. Refusing to lower offering prices if doing so will minimize the net revenues.E. Agreein
Which among the adhering to is an unintended result of the Sarbanes-Oxley Act? A. Increased responsibility for corporate police officers. WRONGB. More detailed and precise financial reporting.C. Corporations delisting from major exalters.D. Identification of inner control weaknesses.E. Increased management awareness of internal controls.