Reference no: EM131623636

1. Cash flows and risk are the key determinants in share price. Increased cash flow results in ________, other things remaining the same.

A. an unchanged share price

B. a higher share price

C. a lower share price

D. an undetermined share price

2 -Government can obtain funds ________.

A. through forex market

B. by trading in equity market

C. by issuing financial instruments such as futures and options

D. by selling debt securities

3- Wealth maximization as the goal of a firm implies enhancing the wealth of ________.

A. the? firm's stockholders

B. the creditors

C. the federal reserve

D. the auditors

4- Which of the following is the purest and most basic form of corporate ownership?

A. preferred stock

B. common stock

C. notes

D. bond

5- Which of the following legal forms of organization has the ease of dissolution

A. partnerships

B. limited partnerships

C. corporations

D. sole proprietorships

6- An ethics program is expected to have ________ impact on a firm's share price.

A. a positive

B. an unpredictable

C. a negative

D. no impact

7. Profit maximization as the goal of the firm is not ideal because ________.

A. profit maximization does not consider risk

B. profits are only accounting measures

C. cash flows are more representative of financial strength

D. profits today are less desirable than profits earned in future years

8- The Sarbanesminus−Oxley Act of 2002 resulted in ________.

A. tightened audit regulations and controls

B. delayed disclosure of stock sales by corporate executives

C. lenient penalties against executives who commit corporate fraud

D. toughened penalties against overcompensated executives