Test Bank for Fundamentals of Financial Management 16th edition by Eugene F. Brigham and Joel F. Houston

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Test Bank for Fundamentals of Financial Management 16th edition by Eugene F. Brigham and Joel F. Houston-1. In most corporations, the CFO ranks under the CEO. a. True b. False ANSWER: True POINTS:... 1 DIFFICULTY: EASY REFERENCES: 1-1 What Is Finance? QUESTION TYPE: True / False HAS VARIABLES: False PREFACE NAME: T/F LEARNING OBJECTIVES: FOFM.BRIG.17.01.01 - What Is Finance? NATIONAL STANDARDS: United States - BUSPROG.FOFM.BRIG.17.06 - Reflective thinking STATE STANDARDS: United States - OH - DISC.FOFM.BRIG.17.06 - Finance function LOCAL STANDARDS: United States - OH - Default City - Students will understand and be - Students will understand and be able to articulate the goals of the firm, the role of the finance function in the enterprise's organization, and as an analyst using public information. TOPICS: Role of finance KEYWORDS: Bloom's Knowledge 2. The Chairman of the Board must also be the CEO. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: EASY REFERENCES: 1-1 What Is Finance? QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: FOFM.BRIG.17.01.01 - What Is Finance? NATIONAL STANDARDS: United States - BUSPROG.FOFM.BRIG.17.06 - Reflective thinking Page 2 STATE STANDARDS: United States - OH - DISC.FOFM.BRIG.17.06 - Finance function LOCAL STANDARDS: United States - OH - Default City - Students will understand and be - Students will understand and be able to articulate the goals of the firm, the role of the finance function in the enterprise's organization, and as an analyst using public information. TOPICS: Role of finance KEYWORDS: Bloom's: Knowledge 3. The board of directors is the highest ranking body in a corporation, and the chairman of the board is the highest ranking individual. The CEO generally works under the board and its chairman, and the board generally has the authority to remove the CEO under certain conditions. The CEO, however, cannot remove the board, but he or she can endeavor to have the board voted out and a new board voted in should a conflict arise. It is possible for a person to simultaneously serve as CEO and chairman of the board, though many corporate control experts believe it is bad to vest both offices in the same person. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: EASY REFERENCES: 1-1 What Is Finance? QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: FOFM.BRIG.17.01.01 - What Is Finance? NATIONAL STANDARDS: United States - BUSPROG.FOFM.BRIG.17.06 - Reflective thinking STATE STANDARDS: United States - OH - DISC.FOFM.BRIG.17.06 - Finance function LOCAL STANDARDS: United States - OH - Default City - Students will understand and be - Students will understand and be able to articulate the goals of the firm, the role of the finance function in the enterprise's organization, and as an analyst using public information. TOPICS: Role of finance KEYWORDS: Bloom's: Knowledge 4. Partnerships and proprietorships generally have a tax advantage over corporations. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: EASY REFERENCES: 1-3 Forms of Business Organization QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: FOFM.BRIG.17.01.03 - Forms of Business Organization NATIONAL STANDARDS: United States - BUSPROG.FOFM.BRIG.17.06 - Reflective thinking STATE STANDARDS: United States - OH - DISC.FOFM.BRIG.17.06 - Finance function LOCAL STANDARDS: United States - OH - Default City - Students will understand and be - Students will Page 3 understand and be able to articulate the goals of the firm, the role of the finance function in the enterprise's organization, and as an analyst using public information. TOPICS: Forms of organization KEYWORDS: Bloom's: Knowledge 5. A disadvantage of the corporate form of organization is that corporate stockholders are more exposed to personal liabilities in the event of bankruptcy than are investors in a typical partnership. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: EASY REFERENCES: 1-3 Forms of Business Organization QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: FOFM.BRIG.17.01.03 - Forms of Business Organization NATIONAL STANDARDS: United States - BUSPROG.FOFM.BRIG.17.06 - Reflective thinking STATE STANDARDS: United States - OH - DISC.FOFM.BRIG.17.06 - Finance function LOCAL STANDARDS: United States - OH - Default City - Students will understand and be - Students will understand and be able to articulate the goals of the firm, the role of the finance function in the enterprise's organization, and as an analyst using public information. TOPICS: Forms of organization KEYWORDS: Bloom's: Knowledge 6. An advantage of the corporate form of organization is that corporations are generally less highly regulated than proprietorships and partnerships. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: EASY REFERENCES: 1-3 Forms of Business Organization QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: FOFM.BRIG.17.01.03 - Forms of Business Organization NATIONAL STANDARDS: United States - BUSPROG.FOFM.BRIG.17.06 - Reflective thinking STATE STANDARDS: United States - OH - DISC.FOFM.BRIG.17.06 - Finance function LOCAL STANDARDS: United States - OH - Default City - Students will understand and be - Students will understand and be able to articulate the goals of the firm, the role of the finance function in the enterprise's organization, and as an analyst using public information. TOPICS: Forms of organization KEYWORDS: Bloom's: Knowledge Page 4 7. Some partners in a partnership may have different rights, privileges, and responsibilities than other partners. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: EASY REFERENCES: 1-3 Forms of Business Organization QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: FOFM.BRIG.17.01.03 - Forms of Business Organization NATIONAL STANDARDS: United States - BUSPROG.FOFM.BRIG.17.06 - Reflective thinking STATE STANDARDS: United States - OH - DISC.FOFM.BRIG.17.06 - Finance function LOCAL STANDARDS: United States - OH - Default City - Students will understand and be - Students will understand and be able to articulate the goals of the firm, the role of the finance function in the enterprise's organization, and as an analyst using public information. TOPICS: Forms of organization KEYWORDS: Bloom's: Knowledge 8. One advantage of the corporate form of organization is that it avoids double taxation. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: EASY REFERENCES: 1-3 Forms of Business Organization QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: FOFM.BRIG.17.01.03 - Forms of Business Organization NATIONAL STANDARDS: United States - BUSPROG.FOFM.BRIG.17.06 - Reflective thinking STATE STANDARDS: United States - OH - DISC.FOFM.BRIG.17.06 - Finance function LOCAL STANDARDS: United States - OH - Default City - Students will understand and be - Students will understand and be able to articulate the goals of the firm, the role of the finance function in the enterprise's organization, and as an analyst using public information. TOPICS: Forms of organization KEYWORDS: Bloom's: Knowledge 9. It is generally harder to transfer one's ownership interest in a partnership than in a corporation. a. True b. False Page 5 ANSWER: True POINTS: 1 DIFFICULTY: EASY REFERENCES: 1-3 Forms of Business Organization QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: FOFM.BRIG.17.01.03 - Forms of Business Organization NATIONAL STANDARDS: United States - BUSPROG.FOFM.BRIG.17.06 - Reflective thinking STATE STANDARDS: United States - OH - DISC.FOFM.BRIG.17.06 - Finance function LOCAL STANDARDS: United States - OH - Default City - Students will understand and be - Students will understand and be able to articulate the goals of the firm, the role of the finance function in the enterprise's organization, and as an analyst using public information. TOPICS: Forms of organization KEYWORDS: Bloom's: Knowledge [Show More]

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