财务管理——原理与应用 第十一版 习题手册及答案 Financial Management - Principles and Applications , 11e ，Test Bank417.docx

PAGE 470 Copyright ? 2011 Financial Management: Principles and Applications, 11e (Titman) Chapter 1 Getting Started-Principles of Finance 1.1 Finance: An Overview 1) Which of the following statements best represents what finance is about? A) How political, social, and economic forces affect corporations B) Maximizing profits C) Creation and maintenance of economic wealth D) Reducing risk Answer: C Diff: 1 Topic: 1.1 Finance: An Overview Keywords: what is finance? Principles: Principle 3: Cash Flows Are the Source of Value 2) The goal of the firm should be: A) maximization of profits. B) maximization of shareholder wealth. C) maximization of consumer satisfaction. D) maximization of sales. Answer: B Diff: 1 Topic: 1.1 Finance: An Overview Keywords: shareholder Principles: Principle 3: Cash Flows Are the Source of Value 3) Which of the following factors enable a public corporation to grow to a greater extent, and perhaps at a faster rate, than a partnership or a proprietorship? A) Unlimited liability of shareholders B) Access to the capital markets C) Limited life D) Elimination of double taxation on corporate income E) All of the above Answer: B Diff: 2 Topic: 1.1 Finance: An Overview Keywords: corporation 4) Which of the following reasons is most responsible for corporations being the most important form of business organization in the United States? A) Corporations have limited life. B) Stockholders have unlimited liability. C) Corporations are subject to less government regulation than the other forms of business organization. D) Corporations have the ability to raise larger sums of capital than the other forms of business organization. E) Corporations are subjected to less taxation than the other forms of business organization. Answer: D Diff: 2 Topic: 1.1 Finance: An Overview Keywords: corporation 5) Difficulty in finding profitable projects is due to: A) social responsibility. B) competitive markets. C) ethical dil