Financial Management: Self-Assessment Quiz

                  Self-Assessment Quiz

This activity contains 13 questions.

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	__________ is the part of finance concerned with the design and delivery of advice and financial products to clients.   Financial planning   Financial services   Managerial finance   Auditing

	Which of the following is least likely to report to the Controller?   Financial accounting manger   Cash manager   Cost accounting manager   Tax manager

	Which of the following statements is correct about the typical corporate organizational chart?   The Vice President of Finance reports to the Vice President of Manufacturing.   The Credit Manager reports to the Treasurer.   The Treasurer reports to the Controller.   The Foreign Exchange Manager reports to the Cost Accounting Manager.

	Corporations are owned by:   bondholders.   chief executive officers.   stockholders.   employees.

	Strengths of the __________ form of business ownership include the owner receiving all profits, low organizational costs and ease of dissolution, and having income included on the owner's personal tax return.   holding company   partnership   corporation   sole proprietorship

	Taxes are generally higher in a __________.   S corporation   corporation   sole proprietorship   partnership

	In an efficient financial market, one would find all of the following except:   prices set through the interplay of demand and supply of the security   investors attempting to maximize their wealth   share prices tending to be below their real value.   funds being allocated to their most productive uses

	__________ are periodic distribution of earnings to the ____________.   Interest payments; stockholders.   Dividends; stockholders   Interest payments; bondholders.   Dividends; bondholders

	The goal of the firm is the maximization of:   wealth of the firm's owners.   earnings per share.   total assets.   sales.

	Agency costs are incurred by a business to:   limit the likelihood of managers operating in their own self interest.   go public.   maximize the availability of tax loss carryforwards.   pay the cost shares on an organized exchange.

	Springfield Medical Devices has taxable income of $180,000, what is its federal tax?   $13,750   $53,450   $22,250   $70,200

	The Sarbanes-Oxley Act of 2002, did all of the following, except:   establish an oversight board to monitor the accounting industry.   establish corporate board structure and membership guidelines.   prohibit stock purchases and sales by corporate executives.   toughen penalties against executives committing corporate fraud.

	The maximum federal tax rate on dividends is:   20 percent.   15 percent.   10 percent.   30 percent.

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