fundamentals of corporate finance 11th canadian edition By Stephen A. Ross Test bank
E) Increase shareholders’ wealth
SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question.
224) Define the concept of a corporation, along with several advantages and disadvantages of conducting business as a corporation.
224) Define the concept of a corporation, along with several advantages and disadvantages of conducting business as a corporation.
225) What items are included in the articles of incorporation?
226) Provide several advantages of the corporate form of business ownership?
227) Provide several disadvantages of a partnership?
228) Provide several common characteristics between a sole proprietorship and a general partnership?
229) What aspects of cash flows is part of the financial manager's responsibility?
230) Elaborate on the financial management function. In particular, the inter-relationships between the CEO, COO and CFO. Expand on the CFO's responsibility from an accounting and finance perspective.
231) What is a hedge fund and what strategies does it utilize? Who is it intended for?
232) How do chartered banks generate income?
233) What is the main drawback of the triple bottom line measure?
234) What is the triple bottom line? What does it measure?
235) List and briefly describe the three basic questions addressed by a financial manager.
236) Why is the corporate form of business organization considered to be more important than sole proprietorships or partnerships?
237) If the corporate form of business organization has so many advantages over the corporate form, why is it so common for small businesses to initially be formed as sole proprietorships?
238) What should be the goal of the financial manager of a corporation? Why?
239) Do you think agency problems arise in sole proprietorships and/or partnerships?
240) Assume for a moment that the stockholders in a corporation have unlimited liability for corporate debts. If so, what impact would this have on the functioning of primary and secondary markets for common stock?
241) Suppose you own 100 shares of IBM stock which you intend to sell today. Since you will sell it in the secondary market, IBM will receive no direct cash flows as a consequence of your sale. Why, then, should IBM's management care about the price you get for your shares?