FIN 571 Week 1 Quiz:

1 . Which of the following business organizational forms subjects the owner(s) to unlimited liability?

2 . Which of the following business organizational forms is easiest to raise capital?

4 . Which of the following factors or activities can be controlled by the management of the firm?

5 .  The legal system and market forces impose substantial costs on individuals and institutions that engage in unethical behavior. Which of the following would not be an example of the above?

6 . The most common reason that corporate firms use the futures and options markets is

7  Galan Associates prepared its financial statement for 2008 based on the information given here. The company had cash worth  $1,234, inventory worth  $13,480, and accounts receivables of  $7,789. The company's net fixed assets are  $42,331, and other assets are  $1,822. It had accounts payables of  $9,558, notes payables of  $2,756, common stock of  $22,000, and retained earnings of  $14,008. How much long-term debt does the firm have?

8 . Tre-Bien Bakeries generated net income of $233,412 this year. At year end, the company had accounts receivables of $47,199, inventory of $63,781, and cash of $21,461. It also had accounts payables of $51,369, short-term notes payables of $11,417, and accrued taxes of $6,145. The net working capital of the firm is

9 .Which of the following best represents cash flows to investors?