Principle of Finance

Which of the following is not a financial institution?

• A pension fund

• A commercial bank

• A newspaper publisher

• An insurance company

Finance can be defined as

• the system of debits and credits.

• 
  the art and science of managing money.

• the art of merchandising products and services.

• 
  the science of the production, distribution, and consumption of wealth.

Which of the following legal forms of organization is most expensive to organize?

• Sole proprietorships.

• Partnerships.

• Limited partnership

• Corporations.

The primary goal of the financial manager is

• minimizing risk.

• 
  maximizing profit.

• maximizing wealth.

• minimizing return.

A more recent issue that is causing major problems in the business community is

• 
  ethical problems.

• the privatization of ownership.

• management.

• 
  short-term versus long-term financial goals of

Which is not the types of financial management decision

• financial decision

• investment decision

• profit decision

• management decision

______________is the different destination between managers and shareholders

From a financial point of view, a company that decides to develop new product is making

• a financing decision

• 
  a cash flow decision

• 
  an investment decision

• a capital structure decision

Which one of the following is NOT an advantage of the sole proprietorship?

• limited profit

• 
  no legal requirements for starting the business

• 
  no time limit imposed on its existence

• none of the answers

The true owners of the corporation are the

• holders of debt issues of the firm

• 
  board of directors of the firms

• common stockholders

• common stockholders