fundamentals of corporate finance 11th canadian edition By Stephen A. Ross Test bank
E) Difficulty in attracting managerial talent
217) Private equity firms (like KKR, Carlyle Group), where they have both general and limited partners, are examples of:
A) Sole proprietorship
B) Limited partnership
C) Limited liability partnership
D) Corporation
E) Joint venture
218) The big four accounting firms (Deloitte, PwC, KPMG and EY), where all partners have limited liability to their actions only, are examples of:
A) Sole proprietorship
B) Limited partnership
C) Limited liability partnership
D) Corporation
E) Joint venture
219) The market for corporate control, where the control of poorly managed firms may be taken over, helps to mitigate:
A) Double taxation in corporations
B) Unlimited liability in partnerships
C) Difficulty of raising funds in proprietorships
D) Agency problems in corporations
E) Excessive regulations faced by corporations
220) Which of the following officers in a corporation does not belong under the umbrella of the Chief Finance Officer (CFO)/ Vice President of Finance?
A) Credit manager
B) Tax manager
C) Product development manager
D) Cash manager
E) Controller
221) Which of the following is NOT a responsibility of the treasurer’s office in a corporation?
A) Managing taxes
B) Managing credit
C) Managing capital expenses
D) Managing cash
E) Financial planning
222) Which of the following is NOT a technique to tackle agency issue in a corporation?
A) Managerial compensation aligned with corporate performance
B) Threat of fire of poorly performing management
C) Monitoring by bondholders
D) Target of acquisition
E) Increase management compensation
223) Secondary markets help the managers of a corporation to:
A) Raise new funds by issuing debt
B) Raise new funds by issuing equity
C) Evaluate available projects
D) Gauge how the market evaluates their performance