fundamentals of corporate finance 11th canadian edition By Stephen A. Ross Test bank
117) An individual who places an order to buy 1,000 shares of IBM stock:
A) Is involved in a private placement of securities.
B) Is most likely involved in an IPO.
C) Is most likely participating in the secondary market.
D) Must have hired a dealer to perform this transaction.
E) Has to be listed as a private dealer.
118) Working capital management:
A) Includes the daily oversight of a firm's cash requirements.
B) Involves the determination of how much long-term debt should be issued.
C) Is the oversight of a firm's long-term assets.
D) Deals with the refinancing of the firm's debt if interest rates decline.
E) Deals with the allocation of equipment to various jobs on a daily basis.
119) Which one of the following actions by a financial manager is most aligned with the goal of financial management?
A) Increasing the size of a firm by acquiring a non-profitable competitor.
B) Increasing the sales of the firm by expanding the company's sales force.
C) Issuing additional shares of stock to repay all of the firm's long-term debt.
D) Improving the efficiency of the company such that the value of the stock increases.
E) Increasing the bonuses paid to the top executives as the size of the firm increases.
120) An entity wherein one or more owners choose to actively manage the firm while other owners choose to maintain limited liability and bear no management responsibility is called a:
A) Corporation.
B) General partnership.
C) Limited liability corporation.
D) Limited liability company.
E) Limited partnership.
121) Limited liability may be a characteristic of each of the following form(s) of organization EXCEPT a ________________.
A) Sole proprietorship.
B) Corporation.
C) Limited partnership.
D) Limited liability company.
E) Co-operative(Co-op)
122) A business that is a distinct legal entity is a:
A) Proprietorship.
B) Partnership with only two partners.
C) Limited partnership.
D) General partnership.
E) Corporation.
123) It is easiest to raise capital for a project under which form of business organization?
A) Corporation.