What is the primary goal of financial management?
Maximizing cash flow
Maximizing shareholder wealth
Minimizing risk of the firm
Reinvested funds from retained earnings theoretically belong to:
All of the above
Industries most sensitive to inflation-induced profits are those with:
The key initial element in developing pro forma statements is:
a cash budget.
an income statement.
a sales forecast.
a collections schedule.
At the break-even point, a firm’s profits are:
greater than zero.
less than zero.
equal to zero.
Not enough information to tell
Under what conditions must a distinction be made between money to be received today and money to be received in the future?
A period of recession.
When idle money can earn a positive return.
When there is no risk of nonpayment in the future.
If in determining the yield to maturity on a bond at a given interest rate, you get a value below the current market price, in the next calculation you should use:
a higher interest rate.
a lower interest rate.
a longer maturity.
a higher coupon payment.
The after-tax cost of preferred stock to the issuing corporation:
is the same as the before-tax cost.
is usually lower than the cost of debt.
is dependent on the firm’s tax bracket.
None of the above
Cash flow can be said to equal:
income before depreciation and taxes minus taxes.
income before depreciation and taxes plus taxes.
income before depreciation and taxes plus depreciation.
income after taxes minus depreciation.
If three investment alternatives all have some degree of risk and different expected returns, which of the following measures could best be used to rank the risk levels of the projects?
Coefficient of correlation
Coefficient of variation
Standard deviation of returns
Net present value
ABC Company hangs signs on its walls saying, “Trust is one of our guiding principles.” This is an example of a(n):
Societal culture is shaped by all of these environmental factors except:
assumptions and expectations.
political; legal setting.
According to a survey of students from 31 countries worldwide, a __________ correlation was found between self-esteem and self-satisfaction.
Marjorie has no tolerance for negative inequity. She can be described as a(n):
a comparison other.
Graduating from high school, Susan needs to apply for college admission. To determine which colleges to apply to, Susan requested information from 64 universities, compared them on six criteria important to her, and chose to apply to seven universities. This process can be described as a:
decision making process.
Delphi technique process.
Which of the following believed that all conflict ultimately threatens management’s authority and thus had to be avoided or quickly resolved?
Scientific Management experts
Alex is to inform her subordinates that the expense reimbursement policy for travel has been significantly modified. Alex would be considered which of these?
Which of these influence tactics is the LEAST used in the workplace?
Which of these is NOT a common denominator of all organizations?
Division of labor
Centralized decision making
A common goal
A hierarchy of authority
ABC Trucking, conducted an analysis of employee job satisfaction and turnover, and concluded that its turnover rate was 48%. This was primarily attributed to job dissatisfaction by employees. This represents a(n) __________ for ABC.
external force for change
social and political pressure
internal force for change