Fin 200 Final Exam 48 Questions
A final exam with 48 solved questions for Fin 200.
Leo Bailey
Contributor
4.2
52
about 1 month ago
Preview (4 of 11)
Sign in to access the full document!
Fin 200 Final Exam 48 Questions
Report this Question as Inappropriate
Question
1. Insider trading occurs when
A. corporate officers buy stock in their company.
B. lawyers, investment bankers, and others buy common stock in companies represented by their
firms.
C. someone has information not available to the public which they use to profit from trading in
stocks.
D. any stock transactions occur in violation of the Federal Trade Commissions restrictions on
monopolies.
2) Regarding risk levels, financial managers should
A. avoid higher risk projects because they destroy value
B. focus primarily on market fluctuations
C. pursue higher risk projects because they increase value
D. evaluate investor's desire for risk
3) Maximization of shareholder wealth is a concept in which
A. increased earnings is of primary importance.
B. profits are maximized on a quarterly basis.
C. virtually all earnings are paid as dividends to common stockholders.
D. optimally increasing the long-term value of the firm is emphasized.
4) An increase in investments in long-term securities will:
A. increase cash flow from investing activities.
B. decrease cash flow from investing activities.
C. increase cash flow from financing activities.
D. decrease cash flow from financing activities.
5) Which of the following would represent a use of funds and, indirectly, a reduction in cash
balances?
A. an increase in inventories
B. the sale of new bonds by the firm
C. a decrease in marketable securities
D. an increase in accounts payable
6) Which of the following is not a primary source of capital to the firm?
A. assets
B. bonds
Report this Question as Inappropriate
Question
1. Insider trading occurs when
A. corporate officers buy stock in their company.
B. lawyers, investment bankers, and others buy common stock in companies represented by their
firms.
C. someone has information not available to the public which they use to profit from trading in
stocks.
D. any stock transactions occur in violation of the Federal Trade Commissions restrictions on
monopolies.
2) Regarding risk levels, financial managers should
A. avoid higher risk projects because they destroy value
B. focus primarily on market fluctuations
C. pursue higher risk projects because they increase value
D. evaluate investor's desire for risk
3) Maximization of shareholder wealth is a concept in which
A. increased earnings is of primary importance.
B. profits are maximized on a quarterly basis.
C. virtually all earnings are paid as dividends to common stockholders.
D. optimally increasing the long-term value of the firm is emphasized.
4) An increase in investments in long-term securities will:
A. increase cash flow from investing activities.
B. decrease cash flow from investing activities.
C. increase cash flow from financing activities.
D. decrease cash flow from financing activities.
5) Which of the following would represent a use of funds and, indirectly, a reduction in cash
balances?
A. an increase in inventories
B. the sale of new bonds by the firm
C. a decrease in marketable securities
D. an increase in accounts payable
6) Which of the following is not a primary source of capital to the firm?
A. assets
B. bonds
Preview Mode
Sign in to access the full document!
100%
Study Now!
XY-Copilot AI
Unlimited Access
Secure Payment
Instant Access
24/7 Support
Document Chat
Document Details
University
University of Botswana-Gaborone
Subject
Finance