HOMEWORK ONE
Jamie is employed as a commercial loan officer for a regional bank centered in the Midwestern section
of the U.S. Her job falls into which one of the following areas of finance? - Financial Institutions
How should the firm raise additional capital to fund its expansion? - How much cash should the firm
keep in the reserve
Which one of the following is an advantage of being a limited partner? - Losses limited to capital
invested
Limited liability companies are primarily designed to: - provide limited liability while avoiding double
taxation.
Which of the following are advantages of the corporate form of organization?
1. Ability to raise large sums of equity capital
2. Ease of ownership transfer
3. Profits taxed at the corporate level
4. Limited liability for all owners - I, II, and IV only
Which one of the following best matches the primary goal of financial management? - Increasing the
market value of a firm
Which one of the following best describes the primary intent of the Sarbanes-Oxley Act of 2002? -
Increase protection against corporate fraud
Which one of the following is most apt to align management's priorities with shareholders' interests? -
Compensating managers with shares of stock that must be held for 3 years before the shares can be sold
Which of the following are potential ways to align management goals with shareholder interests?
