Corporate Finance 1
Quiz
•
Business
•
2nd Grade
•
Hard
Елена Рогова
Used 36+ times
FREE Resource
Enhance your content
10 questions
Show all answers
1.
MULTIPLE CHOICE QUESTION
20 sec • 5 pts
Which of the following decisions is a corporate finance decision?
A change in pricing strategy
A decision to carry less inventory (even if it means lost sales)
All of the above
None of the above
Answer explanation
All of the listed
are corporate
finance decisions,
since they all
require financial
resources.
2.
MULTIPLE CHOICE QUESTION
45 sec • 5 pts
Assume that you are investing in a company that derives its value primarily from growth assets. Given the description of growth assets as the value of investments that you expect the firm to make in the future, which of the following would you expect to see in terms of the rest of corporate finance?
The firm is funded with a lot of debt and pays little out to its stockholders
The firm is funded with primarily equity and pays out large amounts to its stockholders
The firm is funded with primarily equity and pays little out to its stockholders
The firm is funded with a lot of debt and pays out large amounts to its stockholders
Answer explanation
You do not have much in assets, you cannot allow debt and you need to reinvest all your cash back to the firm to ensure growth (so you cannot return cash to shareholders
3.
MULTIPLE CHOICE QUESTION
30 sec • 5 pts
In the big picture of corporate finance, the first big piece is the investment decision. Which of the following best characterizes that decision?
Firms should take investments that make them more profitable
Firms should take investments that generate the most cash flows
Firms should take investments that earn the highest returns
Firms should take investments that earn returns greater than the risk free rate
Firms should take investments that earn returns greater than the risk adjusted hurdle rate
4.
MULTIPLE CHOICE QUESTION
30 sec • 5 pts
In the big picture of corporate finance, the financing principle lays out how firms should approach raising debt. If you follow that principle, which of the following is your best choice to borrow?
Debt with the lowest interest rate attached to it
Debt in the same currency that your cash flows are in
The longest term debt that you can get
The shortest term debt that you can get
Debt in the your local currency
Answer explanation
Debt should match to assets, otherwise default probability increases
5.
MULTIPLE CHOICE QUESTION
30 sec • 5 pts
In the big picture of corporate finance, the dividend principle states that firms should return as much cash as they can to their owners. If firms followed this principle, which of the following would you expect to observe?
Firms will pay out all of their earnings as dividends/stock buyback
Firms will not pay out any of their earnings to stockholders
Firms that have high earnings and low growth potential will return more cash to stockholders.
Firms that have high earnings and high growth potential will return more cash to stockholders
None of the above
6.
DROPDOWN QUESTION
1 min • 5 pts
firm either keep and reinvest cash or return it to investor?
(a)7.
MULTIPLE CHOICE QUESTION
20 sec • 5 pts
What is the major advantage corporations have over other business entities?
It is easier for a corporation to raise capital than other forms of businesses.
A corporation is treated as a separate legal entity for tax and legal purposes.
A corporation's shares can be freely traded among its shareholders.
All of the above are advantages that a corporation has over other business forms.
Create a free account and access millions of resources
Create resources
Host any resource
Get auto-graded reports

Continue with Google

Continue with Email

Continue with Classlink

Continue with Clever
or continue with

Microsoft
%20(1).png)
Apple

Others
By signing up, you agree to our Terms of Service & Privacy Policy
Already have an account?
Similar Resources on Wayground
10 questions
Level of Involvement in Trade
Quiz
•
1st - 10th Grade
12 questions
Parts of the Word Screen and PDF
Quiz
•
KG - University
10 questions
Credit 101
Quiz
•
1st - 12th Grade
11 questions
Famous companies
Quiz
•
1st - 11th Grade
10 questions
Daily Quiz
Quiz
•
KG - Professional Dev...
11 questions
Oryantasyon
Quiz
•
1st - 3rd Grade
10 questions
Costs and Revenues
Quiz
•
1st - 3rd Grade
15 questions
APPLIED BUSINESS TOOLS GAME QUIZ
Quiz
•
1st - 3rd Grade
Popular Resources on Wayground
20 questions
Brand Labels
Quiz
•
5th - 12th Grade
11 questions
NEASC Extended Advisory
Lesson
•
9th - 12th Grade
10 questions
Ice Breaker Trivia: Food from Around the World
Quiz
•
3rd - 12th Grade
10 questions
Boomer ⚡ Zoomer - Holiday Movies
Quiz
•
KG - University
25 questions
Multiplication Facts
Quiz
•
5th Grade
22 questions
Adding Integers
Quiz
•
6th Grade
10 questions
Multiplication and Division Unknowns
Quiz
•
3rd Grade
20 questions
Multiplying and Dividing Integers
Quiz
•
7th Grade
Discover more resources for Business
10 questions
Boomer ⚡ Zoomer - Holiday Movies
Quiz
•
KG - University
10 questions
Verbs
Quiz
•
2nd Grade
20 questions
addition
Quiz
•
1st - 3rd Grade
20 questions
Subject and predicate in sentences
Quiz
•
1st - 3rd Grade
26 questions
SLIME!!!!!
Quiz
•
KG - 12th Grade
7 questions
Compare and Classify Quadrilaterals
Lesson
•
2nd - 4th Grade
10 questions
Subjects and Predicates | Subject and Predicate | Complete Sentences
Interactive video
•
2nd Grade
20 questions
Place Value
Quiz
•
KG - 3rd Grade