BUSINESS FINANCE教学资料 Mock Test for SL.docxVIP

1.?Which one of the following terms is defined as the mixture of a firms debt and equity financing??A.?working capital managementB.?cash managementC.?cost analysisD.?capital budgetingE.?capital structure2.?A business owned by a solitary individual who has unlimited liability for its debt is called a:?A.?corporation.B.?sole proprietorship.C.?general partnership.D.?limited partnership.E.?limited liability company3.?Which of the following are advantages of the corporate form of business ownership?I. limited liability for firm debtII. double taxationIII. ability to raise capitalIV. unlimited firm life?A.?I and II onlyB.?III and IV onlyC.?I, III, and IV onlyD.?II, III, and IV onlyE.?I, II, III, and IV4.?Which one of the following is an agency cost??A.?accepting an investment opportunity that will add value to the firmB.?increasing the quarterly dividendC.?investing in a new project that creates firm valueD.?hiring outside accountants to audit the companys financial statementsE.?closing a division of the firm that is operating at a loss5.?Which of the following represent cash outflows from a corporation?I. issuance of securitiesII. payment of dividendsIII. new loan proceedsIV. payment of government taxes?A.?I and III onlyB.?II and IV onlyC.?I and IV onlyD.?I, II, and IV onlyE.?II, III, and IV only6.?Shareholder A sold 500 shares of ABC stock on the New York Stock Exchange. This transaction:?A.?took place in the primary market.B.?occurred in a dealer market.C.?was facilitated in the secondary market.D.?involved a proxy.E.?was a private placement.7.?A firm has net working capital of $640. Long-term debt is $4,180, total assets are $6,230, and fixed assets are $3,910. What is the amount of the total liabilities??A.?$2,050B.?$2,690C.?$4,130D.?$5,590E.?$5,8608.?Winston Industries had sales of $843,800 and costs of $609,900. The firm paid $38,200 in interest and $18,000 in dividends. It also increased retained earnings by $62,138 for the year. The depreciation was $76,400. What