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business information, Schemes and Mind Maps of Marketing Business-to-business (B2B)

Humber CollegeMarketing Business-to-business (B2B)

it will help you prepare your exam

Typology: Schemes and Mind Maps

2022/2023

Uploaded on 05/10/2025

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Chapter 1
Goals and Governance of the Corporation
1. Corporations that do not issue financial securities such as stock or debt obligations:
A. will not be able to increase sales.
B. cannot be profitable.
C. may not be able to generate sufficient funds to fulfill their needs.
D. do not face double taxation of their profits.
2. A financial manager facing a capital budgeting decision must decide whether to:
A. issue stock or debt securities.
B. use the money market or capital market.
C. use primary markets or secondary markets.
D. buy new machinery or repair the old.
3. The primary goal of financial management is to:
A. maximize current dividends per share of the existing stock.
B. maximize the current value per share of the existing stock.
C. minimize operational costs and maximize firm efficiency.
D. maintain steady growth in both sales and net earnings.
4. The overall goal of capital budgeting projects should be to:
A. decrease the firm's reliance on debt.
B. increase the firm's sales.
C. increase the firm's outstanding shares of stock.
D. increase the wealth of the firm's shareholders.
5. Capital structure decisions include consideration of the amount of:
I. long-term debt to issue.
II. equity to raise.
III. current assets and liabilities.
IV. net working capital.
A. I and II only
B. II and III only
C. III and IV only
D. I, II, and IV only
6. An example of a firm's financing decision would be:
A. acquiring a competitive firm.
B. determining how much to pay for a specific asset.
C. issuing 10-year versus 20-year bonds.
D. deciding whether or not to increase the price of its products.
7. Which of the following is not a financing decision?
A. Should the firm borrow money from a bank or sell bonds?
B. Should the firm shut down an unprofitable factory?
C. How much equity should the firm raise?
D. Should the firm issue bonds or common stock?
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Chapter 1

Goals and Governance of the Corporation

  1. Corporations that do not issue financial securities such as stock or debt obligations: A. will not be able to increase sales. B. cannot be profitable. C. may not be able to generate sufficient funds to fulfill their needs. D. do not face double taxation of their profits.
  2. A financial manager facing a capital budgeting decision must decide whether to: A. issue stock or debt securities. B. use the money market or capital market. C. use primary markets or secondary markets. D. buy new machinery or repair the old.
  3. The primary goal of financial management is to: A. maximize current dividends per share of the existing stock. B. maximize the current value per share of the existing stock. C. minimize operational costs and maximize firm efficiency. D. maintain steady growth in both sales and net earnings.
  4. The overall goal of capital budgeting projects should be to: A. decrease the firm's reliance on debt. B. increase the firm's sales. C. increase the firm's outstanding shares of stock. D. increase the wealth of the firm's shareholders.
  5. Capital structure decisions include consideration of the amount of: I. long-term debt to issue. II. equity to raise. III. current assets and liabilities. IV. net working capital. A. I and II only B. II and III only C. III and IV only D. I, II, and IV only
  6. An example of a firm's financing decision would be: A. acquiring a competitive firm. B. determining how much to pay for a specific asset. C. issuing 10-year versus 20-year bonds. D. deciding whether or not to increase the price of its products.
  7. Which of the following is not a financing decision? A. Should the firm borrow money from a bank or sell bonds? B. Should the firm shut down an unprofitable factory? C. How much equity should the firm raise? D. Should the firm issue bonds or common stock?
  1. Long-term financing arrangements occur in the: A. money markets. B. capital markets. C. secondary markets. D. foreign exchange markets.
  2. The term "capital structure" refers to: A. the manner in which a firm obtains its long-term sources of funding. B. the length of time needed to repay debt. C. whether the firm invests in capital budgeting projects. D. which specific assets the firm should invest in.
  3. When a corporation decides to issue long-term debt in order to pay for the acquisition of real assets, it has made a: A. capital budgeting decision. B. financing decision. C. money market decision. D. secondary market decision.
  4. A firm decides to pay for a small investment project through a $1 million increase in short-term bank loans. This is best described as an example of a(n): A. financing decision. B. investment decision. C. capital budgeting decision. D. capital market decision.
  5. Which of the following represents a financing decision? A. A decision to borrow $10 million through a bank loan B. A decision to invest in the common stock of another corporation C. A decision to buy a new mainframe computer D. A decision to pay $1 million of accounts payable
  6. Which of the following would not be considered a real asset? A. A corporate bond B. A machine C. A patent D. A factory
  7. Which of the following statements best distinguishes the difference between real and financial assets? A. Real assets have less value than financial assets. B. Real assets are tangible; financial assets are not. C. Financial assets represent claims to income that is generated by real assets. D. Financial assets appreciate in value; real assets depreciate in value.
  1. Unlimited liability is faced by the owners of: A. corporations. B. partnerships and corporations. C. sole proprietorships and partnerships. D. all forms of business organization.
  2. Which of the following statements is generally not true for an investor who faces unlimited liability on an investment? A. The investor has invested in a partnership. B. The investor has invested in a sole proprietorship. C. The investor is subject to double taxation. D. The investor is responsible for managing the firm.
  3. A board of directors is elected as a representative of the corporation's: A. top management. B. stakeholders. C. shareholders. D. customers.
  4. The legal "life" of a corporation is: A. coincidental with that of its CEO. B. equal to the life of its board of directors. C. permanent, as long as shareholders don't change. D. permanent, regardless of current ownership.
  5. When the management of a business is conducted by individuals other than the owners, the business is more likely to be a: A. corporation. B. sole proprietorship. C. partnership. D. general partner.
  6. "Double taxation" refers to: A. all partners paying equal taxes on profits. B. corporations paying taxes on both dividends and retained earnings. C. paying taxes on profits at the corporate level and on dividends at the personal level. D. the fact that marginal tax rates are doubled for corporations.
  7. A corporation is considered to be closely held when: A. only a few shareholders exist. B. the market value of the shares is stable. C. it operates in a small geographic area. D. management also serves as the board of directors.
  8. Corporations are referred to as public companies when their: A. shareholders have no tax liability. B. shares are held by the federal or state government. C. stock is publicly traded. D. products or services are available to the public.
  1. Which of the firm's financial managers is most likely to be involved with obtaining financing for the firm? A. Treasurer B. Controller C. Chief Operating Officer D. Board of directors
  2. In a large corporation, budget preparation would most likely be conducted by the: A. treasurer. B. controller. C. chief financial officer. D. chief operating officer.
  3. A chief financial officer would typically: A. report to the treasurer, but supervise the controller. B. report to the controller, but supervise the treasurer. C. report to both the treasurer and controller. D. supervise both the treasurer and controller.
  4. Investment banks like Merrill Lynch or Goldman Sachs: A. collect deposits and relend the cash to corporations and individuals. B. help companies sell their securities to investors. C. design and sell insurance policies for businesses. D. lend to corporations and investors in commercial real estate.
  5. Which of the following appears to be the most appropriate goal for corporate management? A. Maximizing the market value of the company's shares B. Maximizing the company's outstanding number of shares C. Maximizing the current profits of the company D. Minimizing the company's liabilities
  6. A corporate board of directors should provide support for the top management team: A. under all circumstances. B. in all decisions related to cash dividends. C. only when the board has confidence in management's actions. D. if shareholders are not pleased with the firm's performance.
  7. A corporation's board of directors: A. is selected by and can be removed by management. B. can be voted out of power by the shareholders. C. has a lifetime appointment to the board. D. is selected by a vote of all corporate stakeholders.
  8. Agency problems can best be characterized as: A. dislike of firm's bondholders by its equity holders. B. differing incentives between managers and owners. C. spending of corporate resources. D. difference between the primary and secondary markets.