Premium Essay

Busn 379 Midterm

In: Business and Management

Submitted By andrea12
Words 1441
Pages 6
These are the automatically computed results of your exam. Grades for essay questions, and comments from your instructor, are in the "Details" section below.

Date Taken:
6/2/2013

Time Spent:
1 h , 41 min , 37 secs

Points Received: 97 / 130 (74.6%)

Question Type:

# Of Questions:

# Correct:

Multiple Choice
32 21

Short
4 N/A

Grade Details - All Questions

Page: 1 2 3

1. Question :
(TCO 1) What is the goal of financial management for a sole proprietorship?

Student Answer: decrease long-term debt to reduce the risk to the owner maximize net income given the resources of the firm CORRECT maximize the market value of the equity minimize the tax impact on the proprietor minimize costs and increase production Instructor Explanation: Chapter 1, Page 11

Points Received: 3 of 3 Comments:

2. Question :
(TCO 1) When analyzing alternative capital structures for a firm, a financial manager must consider which of the following?

Student Answer: INCORRECT type of loan amount of funds needed cost of funds mix of debt and equity CORRECT all of the above Instructor Explanation: Chapter 1, Page 5, Week 1 Lecture

Points Received: 0 of 3 Comments:

3. Question :
(TCO 1) Book values are different from market values because:

Student Answer: INCORRECT Book values reflect the value of the asset based on generally-accepted accounting principles. Book values are used in the company’s balance sheet. Book values do not reflect the amount someone is willing to pay today for an asset. CORRECT All of the above None of the above Instructor Explanation: Chapter 2, Page…...

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