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Which one of the following terms is defined as the management of a firm's long-term investments?

• A. working capital management

• B. financial allocation

• C. agency cost analysis

• D. capital budgeting

• E. capital structure

Which one of the following terms is defined as the mixture of a firm's debt and equity financing?

• A. working capital management

• B. cash management

• D. capital budgeting

• C. cost analysis

• E. capital structure

A business owned by a solitary individual who has unlimited liability for its debt is called a:

• C. general partnership.

• E. limited liability company.

• D. limited partnership.

• B. sole proprietorship.

• A. corporation.

A business formed by two or more individuals who each have unlimited liability for all of the firm's business

debts is called a:

• A. corporation.

• C. general partnership.

• E. limited liability company.

• B. sole proprietorship.

• D. limited partnership.

Which one of the following is defined as a firm's short-term assets and its short-term liabilities?

• D. net capital

• A. working capital

• E. capital structure

• B. debt

• C. investment capital

A business partner whose potential financial loss in the partnership will not exceed his or her investment in

that partnership is called a:

• B. sole proprietor.

• A. generally partner.

• D. corporate shareholder.

• E. zero partner.

• C. limited partner.

A business created as a distinct legal entity and treated as a legal "person" is called a:

• B. sole proprietorship.

• D. limited partnership.

• A. corporation.

• E. unlimited liability company.

• C. general partnership.

A stakeholder is:

• C. a person who initially founded a firm and currently has management control over that firm.

• B. any person who has voting rights based on stock ownership of a corporation.

• E. any person or entity other than a stockholder or creditor who potentially has a claim on the cash

  flows of a firm.

• A. a person who owns shares of stock.

• D. a creditor to whom a firm currently owes money.

Which one of the following is a capital budgeting decision?

• B. deciding whether or not to purchase a new machine for the production line

• C. deciding how to refinance a debt issue that is maturing

• A. determining how many shares of stock to issue

• E. determining how much money should be kept in the checking account

• D. determining how much inventory to keep on hand

The average of a firm's cost of equity and aftertax cost of debt that is weighted based on the firm's capital
structure is called the:

• A. reward to risk ratio
  

• B. weighted capital gains rate.
  

• C. structured cost of capital.
  

• D. subjective cost of capital.
  

• E. weighted average cost of capital