Download Midterm Exam with Key for Business Finance | BUSA 3150 and more Exams Corporate Finance in PDF only on Docsity!
1 . Corporation 1 Which form of a corporation is not subjected to double taxation? Student Response Value Correct Answer Feedback
- LLC
- S Corp
- C Corp
- Both A and B^ 100%
- All the above Score: 10/ 2 . Goals The goal of the firm is to maximize Student Response Value Correct Answer Feedback
- earnings
- taxable income
- shareholder wealth
- cash flows Score: 10/ 3 . Agency Which one of the following is used in an attempt to remedy agency conflict? Student Response Value Correct Answer Feedback
- Increasing executive pay
- stock options
Student Response Value Correct Answer Feedback
- executive perks
- corporate meetings
Score: 0/ 4 . Pecking Order Who is paid FIRST in the event a corporation goes bankrupt? Student Response Value Correct Answer Feedback
- creditors
- common stock holders
- management
- preferred stock holders
Score: 0/ 5
. Real Asset Which of the following is NOT a real asset? Student Response Value Correct Answer Feedback
- Car
- House
- Land
- Stocks^ 100%
- Table Score: 10/
9 . Taxes The U.S. has a ___tax system. Student Response Value Correct Answer Feedback
- fair
- flat
- progressive^ 100%
- demonstrative Score: 10/ 1 0 . Taxes 4 You have a marginal tax rate of 35%. This means that you pay this rate on ______ of your income. Student Response Value Correct Answer Feedback
- all
- none
- the next dollar earned
- too little info to tell Score: 10/ 1 1 . Current Ratio 2 The current ratio is a ____ ratio. Student Response Value Correct Answer Feedback
- liquidity^ 100%
Student Response Value Correct Answer Feedback
- asset management
- debt management
- profitability
- market value Score: 10/ 1 2 . Debt Ratio A company has long term debt of $40,000 and current liabilities of $20,000. It has current assets of $30,000 and fixed assets of $50,000. What is its debt ratio? Student Response Value Correct Answer Feedback
- 20%
- 50%
- 75%^ 100%
- 80%
- 120% Score: 10/ 1 3 . Current Ratio 3 A company has long term debt of $40,000 and current liabilities of $20,000. It has current assets of $30,000 and fixed assets of $50,000. What is its current ratio? Student Response Value Correct Answer Feedback 1..
