*********

Question

** 2

*

* **** *** *********

********

**** **** ***** *** ******** ******* ** * **** is ***** state *** agreement

corporate

******* ******** **

incorporation

********* *********

****

charter
******** 2

*

* *

****

****** costs

refer

**** ***

*****

********* **** ** ************

over

*** ******** ** *

*****

*** ***** **** result **** ******* *** ********** ** * firm
***

*****

of *** conflicts ** ******** ******* ************ *** management
the *****

********

paid ** ********* over *** ******** ** *** ***** corporate income

subject

** ****** ********* ******** 3
2 / * pts
***** *** **

***

********* ** * ******* ********* **********

Deciding

when **

repay

* long-term ***** ***********

***

**** debt ****** ** borrowed from a ********** ******* Determining

***

much ***** should ** **** in ***

checking

******** *********** *** much ********* ** keep on hand
******** *******

or

not ** **** a *** ****** Question ** 2 * *

pts

Which *** ** the following statements is *********

Both

************ *** ************ ***** double taxation
**** ************ ***

************

**** *******

*********

*** general ******** ***

shareholders

Both **** *************** and ************ *** ***** in

a

******* ******** *** ***** ** business **********

****

******* ****** ************ *** the **** *********** type ** ******** ** *****

********

** * * * **** *** rules ** ***** corporations ******

**********

*** called:
bylaws
articles ** ************** ********* provisions

*********

*********** ******* *********** ******** ** * / * pts
The

*********

made **

financial

******** ****** all **

****

***** ******** ***** ********* ******** of *** ***** *************

**

***

*********

**** of ***

*****

****** *****

of

*** ********

***********

******* ******

****

of the

firm

Question 7
2 /

2

pts
*** process of ******** *** managing a ********** ********* investments ** ********

working

******* management
capital ********** *******

**********

****** **** ********* financial

*************

******** ** * *

2

**** A ******** ** ******** ******* ***

************

and ********** of * firm

**

******** *****************

**********

********* ********** corporate activism

*****

********** the agency problem
******** ** * * * **** Which ***

**

the following ******

is

generally ***

****

liquid?
********

**********

******** receivable
**********

**********

******** ***

*

/ *

****

***** ******** is ***

*****

for *** ******* ******* ****** * Liabilities * ***************** ******* ****** = Current Long-Term

****

* ********

*********

None **

******

***** ******

*

Liabilities *

*****************

Equity
***** ******

*

***************** Equity

*

******* ******* Question ***

2

* 2 **** ***** refers ** *** ********** dividend payments ****

***

***

***

equity

raised

******* *********

*********

cash

*****

Cash

****

**** creditors

***

******* ******** **** ****

**

************* Question *** 2 * * pts
An ********

in

total ******** **** ** ****** **

**

***** ******** in liabilities *** shareholders’ ******* ***

only

***** **** *

****

*** ******** net income
means **** *****************

******

**** **** ********* ***** **** net working *******

**

**** ***********

********

** investment ** *****

*******

******** *** 2 * * **** ************** ********* *** ***** ****** net ******

***

********* ****

******

** a ********

*******

which ********* *** net

operating

income
********* ***

net

***** assets ** *****

**

*** balance

sheet

** * ******* *******

****

is recorded ** the ******

statement

reduces both *** net ***** ****** and *** ***** ** * firm

Question

*** * * * **** _____ ****** ** *** ****

****

**** ******* from *** firm’s ongoing normal

********

*********** **** **** **** operating activities
******* *********

***

working ******** **** **** **** *******

****

flow **

**********

Question *** * *

*

****

Liquidity

**** ***** to *** ****** ***** ** * firm’s total

assets

***** *** current liabilities
***** to ******* ****** ***** *******

liabilities

a ******* ** *** *** ** debt ** * ********** capital

**********

******** ** a **** **** ****** ****** assets **** to **

****

profitable ** **** ********* ********** with ********** ******* ******** 16
* *

*

pts
***

*********

********* summarizing a **********

accounting

*********** **** a ****** ** **** ** ***** ***************** equity ****** balance ****** ****** **********

statement

** **** ****** tax reconciliation

**********

******** ***

*

/ * ****

***

** the ******* ***

cash

flow ******** ** *******

**

********* None

**

****** cash ***** ***

****

subjective than

***

income
** ** **** ** ********** ** **** the **** ****** ** ** *********

**

manipulate ** spin the **** ****** ****

*****

*** **** to *********** Question 18
* / * **** The ******

the

inventory ******** ******* ***** ******* the ****** ** ********* **** by * ***** ****** *

****

***** its ********** ****** **

*****

* firm

**

**** *** ********** ******

***

****** of ********* **** ** * firm
****** * firm ******** ******* ** *** ******

********

*** * /

*

pts
***

***

****** *

*********

********* **** ** *********

is

because:
None **

these

*** ****

**********

**** ********* ******* *****

***

****** *********** ******* achievable ********* ****** *** *** ********* policy
*** plan

determines

**** ********** *******

*****

** ********* ****** ******** ** * well-developed *********

*****

******** *** 2 * 2 **** If ************ **** **

****

*** **** profit * **** ** making ** their entire

investment

in *** **** the shareholders should

look

at *****

******

*********** ****** on *******

********

*** ****** profit ******* ****** ** *******

********

*** 2 * * **** ********* ratios that measure

*

firm’s ******* ** *** *** *****

****

*** ***** run without ***** ****** *** ***** **

*****

******* ****** value
short-term ********* ********* solvency
profitability
asset

***********

******** *** 2 / * pts
***** ***

of

*** *********

statements

is ******* ********** *****

**********

****** ** *** ******* the ******* of **** *********** among ******

*

****** ***** **

*****

******** differently by ********* individuals
Only

*

very ******* ****** ** ****** can be **** *** analytical purposes
******

******

be **** *** ********** ******** ****

*******

** time
**** ***** has a ******** formula **** **

****

************ **

***

analysts
Question *** *

*

* **** ***** ** *** ********* *** ********* ******** * **** ******** ****** ** current ****** *** quick ****** ** inventory ********* * *** **

only

** ***

***

** ***** *

***

*** ** *****

I

II III

***

*** ** and

***

***** ********

24

* * 2 ****

*****

one ** the ********* sets of ****** applies most ******** ** ************** Market-to-book ratio *** ************** ratio
***** ratio *** ***** ******** earned

Return

** ******

***

profit margin

Price-earnings

ratio ***

debt-equity

******

****

coverage *****

***

***** ******

multiplier

******** *** * *

*

pts
***** two ** *** ********* ********* the **** effective *******

**

******** evaluating *** ********* *********** ** * ****** * ********* ***

*******

********* ****** ** those ** the **** **** **** *****

****

******** II ********* * ********** ********* ratios ** those of ***** ***** **

***

firm’s **** ***** who have ******* *********** *** comparing *** *********

statements

of *** firm to the ********* statements ** similar firms ********* in *****

countries

IV comparing

the

********* ****** ** ***

****

** *** ******* ****** ** *** *****

*******

** the **** geographic

*****

II and ***

*****

*** *** **

only

* *** II

only

* and III only

*

*** IV ****